An Experimental Investigation of Online Banking Adoption in China

In: Business and Management

Submitted By cathylht
Words 3943
Pages 16
Journal of Internet Banking and Commerce
An open access Internet journal (http://www.arraydev.com/commerce/jibc/) Journal of Internet Banking and Commerce, April 2009, vol. 14, no.1 (http://www.arraydev.com/commerce/jibc/)

An Experimental Investigation of Online Banking Adoption in China
Guangying Hua, PhD candidate Bentley University, Massachusetts, USA Postal Address: Morrison 324, Waltham, MA 02472 USA Email: ghua@bentley.edu Guangying Hua is a PhD candidate at Bentley University. Her research interests include business analytics, social networking, and issues in IT applications in business area.

Abstract
Online banking, an Internet based service enabling people to do financial transactions, has been an obstacle for the development of e-commerce in China. This paper investigates the online banking acceptance in China. We conducted an experiment to investigate how users’ perception about online banking is affected by the perceived ease of use of website and the privacy policy provided by the online banking website. We find that both perceived ease of use and privacy policy have a significant impact on user’s adoption of online banking. In this study, we also investigate the relative importance of perceived ease of use, privacy, and security. Perceived ease of use is of less importance than privacy and security. Security is the most important factor influencing user’s adoption. A discussion of the implications of these results and limitations are provided at the end. Keywords: Online banking; Information privacy; Security; Technology Acceptance Model (TAM); Experimental design © Guangying Hua, 2009

JIBC April 2009, Vol. 14, No. 1

-2-

INTRODUCTION
Information and communication technology enables traditional financial institutions to expand their business to and through the Internet. Online banking is an Internet based service enabling people to do…...

Similar Documents

An Investigation Into the Adoption of Digital Tv

...RESEARCH REPORT: Title: An investigation into the adoption of Digital Terrestrial Television in Gauteng A project report submitted in partial fulfilment of the requirements for the degree of Master of Science (MTM) In the GRADUATE SCHOOL OF TECHNOLOGY MANAGEMENT, FACULTY OF ENGINEERING, BUILT ENVIRONMENT AND INFORMATION TECHNOLOGY, UNIVERSITY OF PRETORIA 09 April 2012 Table of Contents Contents RESEARCH REPORT: 0 Title: An investigation into the adoption of Digital Terrestrial Television in Gauteng 0 Student name 0 Bongane Brian Mabaso 0 Master of Science (MTM) 0 GRADUATE SCHOOL OF TECHNOLOGY MANAGEMENT, 0 FACULTY OF ENGINEERING, BUILT ENVIRONMENT AND INFORMATION TECHNOLOGY, 0 UNIVERSITY OF PRETORIA 0 09 April 2012 0 Table of Contents 1 Abstract i Acknowledgements ii List of Figures iii List of Tables iv List of Acronymns/Definitions/Abbreviations v 1. Background to the research study 1 1.1. Introduction 1 1.1.1. Advantages of Terrestrial Microwave over Satellite 2 1.1.2. Digital Terrestrial Television value chain 4 1.1.3. Benefits of Digital Terrestrial Television to the consumer 5 1.1.4. Benefits of Digital Terrestrial Television to the broadcaster 5 1.1.5. Public broadcaster’s commercial activities 6 1.1.8 International Public Broadcasters 7 1.2. Historical development and current state of the industry...

Words: 9146 - Pages: 37

China Banking

...Chinese Banking System- Risk Management Central banks are the principal monetary authority of a country or a group of countries and are crucial to the functioning of all banks, financial markets, and the economy. “Central banks typically expose themselves to variety of risks including market, credit, interest rate and liquidity risk”. (PWC.com). Furthermore, central banks are exposed to significant reputational and operational risks as well as legal risks. Central banks necessitate the combination ofliquidity, safety and the enhancement of returns on invested funds, as the fundamental criteria for managing its reserves and financial risks. Hence, central banks usually implement a separate risk management department that monitors the central bank widerisks. In the Chinese banking system, China Bank Regulatory Commission (CBRC) is responsible for overseeing risk management of all the Chinese banks. The CBRC requires banks to take operative measures to address the weaknesses in their internal controls and improve their risk management and internal control practices.Due to the complicated and changing economic and market environments, both internationally and domestically, along with the emerging risks on various fronts, the CBRC strives to take responsive actions to facilitate sound and sustainable economic and financial developments in China. It endeavors to identify andmitigate risks in a forward-looking manner, by constantly improving the regulatory framework and......

Words: 1100 - Pages: 5

Technology Report on Online Banking

...300 Almost half of Americans use online banking and the statistic is growing. Banking is even going mobile. There are multiple banking applications available for smartphone users. If there’s not an “app” for your banking needs then there’s a strong possibility that your bank has a mobile version of their site making mobile banking easier than ever. How is internet/smart phone banking possible? The answer lies within the application and implementation of management information systems. These information systems contain components that work together to provide information. With the technology available today, banks have basically taken their information systems and expanded them to management information systems. Essentially using the data they already have but using it in a way to achieve business goals, such as the convenience of online banking. Before internet banking customers were forced to bank during the bank’s limited business hours, often time, banks opened after you were at work and would be closed by the time you got off work. Additionally, customers were forced to wait in excruciatingly long lines during peak business hours in order to handle their financial needs. Customers would have to endure all of that just to check the balances of their accounts. In order to better serve customers and their needs, internet banking was implemented. In the beginning, internet banking was extremely limited. Customers could check their balances......

Words: 1517 - Pages: 7

Adoption of Internet Banking and Customer Behaviour

...Adoption of Internet Banking and customer behavior The financial service industry plays very important role in the development of any country especially in country like India where service industry is contributing app. 48% of overall GDP And also financial sector is growing at the rate of 8.02% (according to SBI). By knowing such a huge importance of banking industry in India, it is very important to monitor and access new development in the industry. And one of the major development that happened in past decade was emergence of core banking which helps banks to move fast and provide better services to their customer. Due to core banking various new technologies came in to periphery of banking. These technology have change the definition of Banking. One of the major technology that is playing important role in last 5-7 years is Internet Banking services. Commercial banks across the region have invested hundreds of millions of rupees in developing required infrastructure as per the guideline of RBI for providing better experience to customer. Now with the help of net banking and other electronic banking services customer can access all banking services anywhere and anytime 24x7. This study is conducted to know How the customer especially youth reacting towards net banking services? Are they cashing the benefits? Why and Why not they are using it? What is Internet Banking? And what are the advantages and disadvantages of Internet Banking? Online banking (or......

Words: 608 - Pages: 3

An Investigation Into Factors of Affecting Online Shopping Within China on College Students

...2 4.1 Advantages of purchasing online 2 4. 2 The characteristics of online shoppers 3 4. 3 Factors of affecting online shopping 3 5. Methodology 5 5.1 Research design 5 5.2 Data sources defined 6 5.3 Data collection methods 7 5.4 Data analysis 7 6. A statement of possible outcomes 8 7. Ethical consideration 8 8. Risk assessment and risk management 9 9. Resource management 9 References 11 1. Project title An investigation into factors of affecting online shopping within China on college students 2. Research Context With the proliferation of using internet,the way of living and working has increasingly changed, such an environment enables people to gain information such as pictures, videos, news and knowledge as well as purchase goods through internet. So, The proportion of E-shopping has been consistently growing. Internet World States (2010) reports that China is the world’s largest Internet market. According to “China Internet network information center” (CNNIC) reported that in 2009 the number of Chinese online shoppers is108 million with 45.9% annual growth rate. At present the rate of online shopping has reached to 28.1% from 22.1% at the end of 2007. However, which group of people are the main customers to shop online and what factors drive these people to purchase on the internet? A survey did by Iresearch ( Iresearch is a company that focuses on internet media, e-commerce, online games and other new economic......

Words: 4156 - Pages: 17

Online Banking Evolution

...Ariana Garcia CIS/207 August 05, 2014 Anderson Smith System Evaluation Paper Banking has developed and continues to develop as the years go by. Traditionally a customer would walk into a branch if there were any type of transaction to be made. On paydays, a customer would walk into their bank and deposit their check, or cash them. If a customer wanted to send money to their family in Canada or another state they would submit a form to send funds to them, it would then take a few business days for the recipient to have the money in hand. In 1983, the basic and original functions of online banking began via telephone and a television, they were introduced by The Bank of Scotland, and were called “Homelink” (Yodlee, 2012). In October of 1994 the online banking website was developed in the United States by Stanford Credit Union (Yodlee, 2012), and has since then continued to expand with other bank institutions worldwide. Online banking has developed many tools to satisfy their customers by allowing convenience from their home with online websites, or even the palm of their hands with a phone application. There is little need for anyone to leave their home to send or receive money, deposit a check, pay a bill, view a statement, or make transfers between accounts. There are many other useful tools available for online banking and many innovations yet to come. Online banking has helped bank institutions keep customers satisfied by providing them with the latest...

Words: 756 - Pages: 4

Online Banking

...is to assess and to compare the development of e-banking solutions by financial institution with a local approach. Online banking or Internet banking or E-banking allows customers of a financial institution to conduct financial transactions on a secured website operated by the institution, which can be a retail bank, virtual bank, credit union or building society. In 2014, around 69 million American citizens bank online on a regular basis, and 81% of the ones who managed household finances have banked online at least once in the last couple of months, according to the Pew Research Center, and institution dependent on the Federal Reserve. In the light of this data, we took a look at five financial institution that operate in our area to see what tools are they implanting in order to replicate the procedures and provide our customers with a useful and secure online set of services in the near future. The financial institutions chosen were Wells Fargo, First Citizen Bank, Union Bank, High Country Bank and PNC. Regarding their online services, they seem to be pretty standardized and most of them offer a basic service that includes online access, money transfer, bill Payment with an option to receive alerts regarding movement in your accounts, even Wells Fargo Mobile app allows users to deposit their checks online by taking a picture of it. Besides, all of them have been putting effort to provide a safe environment to do online money transactions in a safe way. On the......

Words: 873 - Pages: 4

Advantage of Online Banking

...because there are too many banks, too many branches, and too many competitors. A merger is when two companies combine to form a larger more powerful firm. Many economist have opposing view points on the role that mergers play in the economy. In the past five years many mergers have occurred in the banking industry for example; Chase Manhattan and Chemical Bank, BankAmerica and NationsBank, and Banc One and First Chicago. These are only a few of the hundreds of mergers that have taken place in the past five years. Although consolidation can make the banking industry more productive, merging and reducing expenses give only a short lived boost to earnings. In the long run we will end up with bigger banks facing the same problem, fewer and fewer people who need them. Like any other industry in today's society the banking industry is changing. Some economist even say its becoming extinct. Bank rivals are pressing from all directions. Commercial Loans that was once an exclusive banking industry has been invaded by companies such as GE Capital and Merrill Lynch. "Over the past five years loan activity at GE Capital already one of the countries biggest lenders has climbed 11%, while the banking industry loan growth has crept along at a 3% annual rate. Or look at Merrill Lynch. Over the past year, it has originated $4.2 billion in commercial loans, equal to roughly one third of KeyCorp's total commercial loan portfolio at the end of 1994."1 Even the consumer-loan franchise is being......

Words: 1152 - Pages: 5

Islamic Banking in Western China

...Islamic Banking in Western China Group Paper 3 Group 4 November 6, 2014 Banking in some form has been around for thousands of years. It started small with loans of food or some other valuable product in local villages and has now evolved into the global industry we know today. There is a newer kind of banking that has seen a surge of acceptance from across the world, and that new kind of banking is known as Islamic banking. Islamic banking is a fairly new alternative to western banking, starting in the 1970’s. It is based on Shariah, the fundamental Islam religion. This is a socially responsible way to do banking and allows religion to guide decisions. Interest based transactions are not allowed because they violate Islamic law (Varriale, 2014). Instead, they share profits and losses with the lenders and borrowers of the banks. A few concepts, musharaka, murabaha, and mudaraba, are used in place of interest. Musharaka is when a borrower repays their loan through principal payments and a predetermined percentage of profits. Mudaraba is when a borrower agrees to pay the bank a handling fee if the investment is successful (R.J.C. and A.O.S., 2009). Murabaha is when the bank buys an asset for a customer and then sells it to them on a deferred basis, avoiding an interest-bearing loan. They also offer leasing agreements (R.J.C. and A.O.S., 2009). Islamic banking also requires tangible assets to back up the financial products. This is a much more conservative......

Words: 1381 - Pages: 6

Online Banking

...Business Management Report on Online Banking for the Future For this assignment, I chose to research the DCU bank. On their website, they provide a specific section for Businesses. In this section they provide online banking in the ”Free Business Banking" section. Here, they provide FREE online access, a FREE online bill payer. This was the first thing I saw when I signed onto their website. In another section of their website under 'customer service' there is a link labeled "online banking". Here, they explain how online banking gives people 'easy access' to their own accounts 24/7. You can deposit checks online, transfer money to different accounts, apply for loans and many other things as well. Overall, I think that online banking is certainly a good thing for small business owners to manage their finances. With access to their accounts 24/7 it would make a lot of things easier. Technology has made it easier for me to pay my bills. Rather than writing checks and sending them in a week before they are due I can just go online and pay them through my account. It is much easier. Also, it makes things easier when transferring money onto my debit card when making purchases- it saves me a trip from driving all the way to the bank to withdrawal. I think the same thing goes for business firms as well- they can probably deposit checks through their phones or over the internet as well. In my opinion, I think that within the next 5 to ten years people won't even need to......

Words: 405 - Pages: 2

Online Banking

...Project 1 On Problem Statement for Online Banking Systems Submitted By:- Vanitha Reddy Pannla 1687324 Online banking is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, such as a retail bank, virtual bank, credit union or building society. To access a financial institution's online banking facility, a customer with Internet access would need to register with the institution for the service, and set up a password and other credentials for customer verification. The credentials for online banking is normally not the same as for telephone banking. Financial institutions now routinely allocate customers numbers, whether or not customers have indicated an intention to access their online banking facility. Customers' numbers are normally not the same as account numbers, because a number of customer accounts can be linked to the one customer number. The customer number can be linked to any account that the customer controls, such as cheque, savings, loan, credit card and other accounts. Customers create a username and password to login to the system. For example:- The above image is the chase bank online banking system home page. On the right hand side you can see the log in to the account using a user name and password. To access online banking, a customer visits the financial institution's secure website, and enters the online banking facility using the......

Words: 950 - Pages: 4

Online Banking in Bangladesh

...Chapter 1 1.1 Introduction Internet Banking is growing popular day by day in Bangladesh. A number of private as well as local banks are going online now considering the demand and necessity of fast banking. Internet banking not only provides banking facility round the clock but also helps a country to get attached to the international economy as well as business. People throughout the world are now getting engaged with more activity and business and hence need the fast and anytime access to his/her bank account. Internet banking also facilitates buying and selling various products which varies country to country. In Bangladesh many banks have launched Internet Banking. Amongst those HSBC, City Bank, BRAC Bank, Bank Asia, Jamuna Bank, Janata Bank, Southeast Bank, AB Bank, First Security Bank, Mercantile Bank, Premier Bank etc are in action already. Some are known as online banking, some are Internet Banking, providing various facilities. Like City Bank has the facility of account check and statement print including query about cheque book information. Bank Asia has almost same facilities but with addition they have internal fund transfer facility along with bill payment and mobile phone recharge which are, in fact quite handy. Mercantile bank has a schedule for internet banking. It is Sunday to Thursday, 9am-3pm. They have the facility of money transaction, deposit and withdrawal though they charge a particular amount for each transaction according to their policy, it is a...

Words: 6383 - Pages: 26

Online Banking

... Introduction Background Online Banking or Electronic Banking is a new but emerging technique in Bangladesh. it has not been long time that the banking sector of Bangladesh adopted automation but the positive thing is the speed of transformation that means the change is happening so fast and Bangladesh is adopting the modern method of banking appropriately. Since it has been launched, online banking is getting more and more popular. Online banking pioneers in Bangladesh are the multinational banks but other local banks (both the public and private) followed the trend almost in a paralleled way. A number of private as well as local banks are going online now considering the demand and necessity of fast banking. Online banking not only provides banking facility for 24 hours, moreover it helps countries to get attached with one another and helps to advance in trade and commerce. It actually helps to be interlinked, to go global and to stay updated with the current money and asset management techniques. The online banking is also referred as Electronic banking or Internet banking. As the world is going global so people from different countries are now getting engaged in business and other activities thus they now need very fast and easy access to bank accounts to fulfill the exchange formalities. In Bangladesh many banks have adopted online banking, these banks are HSBC, SCB, Citi Bank NA, Dutch Bangla Bank, City Bank, Bank Asia, Eastern Bank, Jamuna Bank, UCBL, AB Bank etc. All...

Words: 5635 - Pages: 23

Banking in China

...developed countries, put forward a relatively high demand on the openness of financial industry. In order to join the WTO, China had to make a promise to open up financial industry in a planed and steady way, and the Schedule of Specific Commitment in the documents appended thereto of the Agreement on Financial services is a measure of the degree of openness Because banking is the cornerstone of the financial industry, the degree of banking openness decides that of the financial industry in a large part. Therefore, the study of banking openness has been one of hot topics both in the academic field and practice field. Many researchers discuss the challenges and competition we face after join the WTO, so does the strategy to fight against the foreign banks. However, in order to find out the way to strengthen the domestic banks, attention should be paid not only on what we can do inside the country, but what others had done outside the country. We should learn the experience of other countries in order to spot out China’s shortage in banking and improve it. United States is the major financial power in the world, and the comparison between US and China can give us some ideas on how to strengthen China’s own financial power. 2. Discussion 2.1 The comparison of opening up banking industry between US and China In the section, the comparison about opening up of banking industry will focus on three aspects: goals, mode and results. From the analysis of the similarity and......

Words: 1008 - Pages: 5

Online Security Banking

...One of the most important customer concerns about online banking is security. Since 2006 to date, advanced internet technologies have been designed to protect your account information throughout the entire online banking process, from your computer through the bank's own systems and back again. Although absolute confidentiality of data transmitted over the public internet is not guaranteed, the strongest available industry-standard SSL protocols are used to encrypt all data transmissions between your computer and data center. Messages are not decrypted until they are inside the bank’s firewall. At that point, they are subject to additional internal security procedures common to ATM and telephone banking services. With reference from the case study, we realized that some Norweigian banks used customer’s SSN and pins as a form of authentication which was proven to be weak and vulnerable to attacks. Since 2006 till now banks all over the world have improved upon their authentication methods and tighten security issues involving online banking security. To be able to access most links, you will need Internet access and an Internet browser that supports Secure Sockets Layer with 128-bit encryption and a computer with at least a 133mHz processor and a 28.8 modem or a high speed connection. Today, online offerings are more robust, giving consumers a wider range of choices. But safety of both their personal data and their deposits remains a major concern of many. [pic] ...

Words: 478 - Pages: 2

Featured Movies | keyboard_arrow_up | HD 720 Everybody Loves Somebody(2017)