e banking case study

ORIGINAL RESEARCH article

E-banking adoption: an opportunity for customer value co-creation.

• 1 Department of Marketing, University of Castilla-La Mancha, Ciudad Real, Spain
• 2 Faculty of Management and Communication, Universidad Internacional de la Rioja, Logroño, Spain

The development of information and communication technologies offers innovative opportunities to establish business strategies focused on customer value co-creation. This situation is especially notable in the banking industry. e-Banking activities can support competitive advantages. However, the adoption of e-banking is not yet well-established among consumers. In this sense, the technology acceptance model (TAM) is considered essential in studying consumer behavior applied to adopt a particular technology. According to the TAM model, this study analyses the factors which influence bank customers to adopt e-banking to facilitate their banking services and support the process of value co-creation. Consequently, the authors examine five main aspects of the technology adoption model to provide a broad understanding of bank customers’ consumption of e-banking. A partial least squares structural equation modeling (PLS-SEM) analysis is conducted to evaluate proposed relationships between factors and customers’ e-banking adoption.

Introduction

The rapid growth and development of information and communication technologies (ICT) have enabled companies to create value in a digital environment ( Schreieck and Wiesche, 2017 ). Currently, the adoption of innovation in the organization’s strategy is an essential requirement to create value. The term value co-creation has a principal role in easing this innovation. O’Hern and Rindfleisch (2010) conceptualize value co-creation as a collaborative activity, in which consumers actively participate and choose components of a different product or service proposition. Thus, in the digital era, value creation has become the co-creation of value between customers and companies ( Hosseini et al., 2020 ).

Internet and technological development have changed how financial services are offered and used ( Malaquias and Hwang, 2019 ). Banks and many financial institutions suggest alternative innovative electronic channels for maintaining a competitive advantage and satisfying customer expectations. Mobile devices and destock have increasingly become tools that customers implement through e-banking to pay for products and services ( Zhang et al., 2018 ). Therefore, e-banking can adapt to clients’ needs, such as performing banking activities, without physically visit an office or an ATM ( Malaquias and Hwang, 2019 ). For this reason, e-banking has considerable value for many financial organizations and customers ( Baabdullah et al., 2019 ).

The introduction and growth of Internet services, which offer better possibilities of interaction with companies, allow consumers to participate in the development and/or improvement of products/services, resulting in value. Consequently, organizations are concerned about attracting customers who want to contribute their ideas to the collaborative process ( Chepurna and Criado, 2018 ). The banking context is particularly interesting in analyzing the transition toward a value co-creation strategy ( Mostafa, 2020 ). The fierce competition in the banking arena has facilitated e-banking as the most cutting-edge electronic-based and self-service distribution channel ( Malaquias and Hwang, 2019 ). e-Banking is conceptualized as a distribution and communication channel which allows customers to interact with a bank to conduct transactions economically and efficiently, mainly through electronic tools, e.g., tablets or smartphones ( Singh and Srivastava, 2020 ). The use of e-banking offers a wide variety of services for customers, which provide them with value and create a competitive advantage over competitors, such as account checking, bill payment, transferences, or mobile phone text message notifications ( Mostafa, 2020 ). As an example of this incremental service innovations, Bankia is modernizing their communication channels to increase the value offered to customers. Bankia has been recognized as the first Spanish bank with an official verified WhatsApp account to communicate with either current customers or prospects. This action is part of its business strategy “Digital Humanism” as a new way of relating to customers based on a closer, agile, and direct actions ( Bankia, 2020 ).

The massive usage of the Internet and electronic gadgets have captured the attention of researchers to e-banking. Previous studies (e.g., Glavee-Geo et al., 2017 ; Singh and Srivastava, 2020 ) show that previous works have studied the factors that encourage the adoption of e-banking ( Mostafa, 2020 ). However, the adoption rate of e-banking is below the expectation and still in the adoption phase, even though e-banking services offer several outstanding services to users ( Shankar et al., 2020 ). Therefore, this study aims to develop an empirical model based on technology adoption, applied in e-banking to understand the behavior of the users. Specifically, some variables included in the technology acceptance model (TAM) will be examined as factors that stimulate the adoption of e-banking and become an opportunity for customer value co-creation.

For this reason, this research provides a series of contributions that can help identify decisive factors in the use of e-banking and encourage customer value co-creation through interaction with electronic services. In this setting, this study focuses on the following questions: What are the factors that affect a consumer’s use of e-banking? What factors are most important in the consumer’s intention to use e-banking? What type of e-banking is most in-demand, and what strategies around the use of e-banking could the banks and financial institutions follow to increase its use? How can the use of e-banking contribute to customer value co-creation? Through partial least squares structural equation modeling (PLS-SEM) approach and the use of the importance-performance map analysis (IPMA), this research field provides insights and recommendations to help the banking industry adopt and use e-services by consumers to support the process of value co-creation.

To achieve the proposed objective, the study is organized as follows. First, the conceptual framework, the proposed model, and its hypotheses are presented. Then, the methods used and the results of the study are described. Finally, the conclusions and limitations of the study are presented.

Conceptual Framework

Co-creation and the banking market.

The banking industry is a leader in providing consumers with opportunities to access products and services through advanced technology ( Malar et al., 2019 ). The development of ICT has allowed banks to have a relationship with customers, shifting away from physical interaction with a bank branch to interactive and virtual environments ( Martovoy and Santos, 2012 ). Some authors, such as Andreu et al. (2010) , specify the consequences of direct interactions between a company and its customers to achieve value co-creation. Other researchers, such as Payne et al. (2008) , highlight that organizations must adopt a customer relationship approach to support value creation. Co-creation requires companies’ ability to connect with customers and market orientation to be closer to them ( Ind and Coates, 2013 ). Consequently, the company-client relationship must be active, providing interactive experiences and activities guided by decisive practices while taking advantage of customers’ unconscious behavior. In this sense, customers are encouraged to participate in the process and meet their own needs.

Following the study of Grönroos (2011) , consumers ought to perceive usefulness or benefit using self-service and involvement in the process to be motivated. In the banking sector, there is a generalized interest in providing easy and fast services, maintaining the quality of products, and services toward the customer. Furthermore, the advent of new technologies, products, and services encourages new needs and demands by customers ( Hosseini et al., 2020 ). Ease access to information and the differentiation of products and services offered by the Internet creates higher expectations among customers. Consequently, an innovation that appears in a specific part of the work may be effortlessly accessed in other parts of the world and desired by any person ( Mainardes et al., 2017 ). Another feature of electronic services is accessibility to consumers. Some studies indicate that banking services are linked to this new and demanding customer profile. Consequently, the new services provided by banks arise from customers’ needs, characterizing the continuous sharing of ideas and value co-creation in the banking sector ( Oliveira and von Hippel, 2011 ; Akter et al., 2020 ).

Based on the study of Medberg and Heinonen (2014) , direct contact with the company and e-services create new ways of relationship and involvement with customers, positively affecting the company’s financial performance (e.g., decreasing of operating costs, increase on investment return). Furthermore, this way of interacting with customers has boost competitiveness in the banking industry, requiring an agile adaptation from each financial organization. It is proven that, when a bank includes a new or enhanced service to customers, competitors follow this innovation through the launch of the same or improved service. Thus, co-creation characterizes the innovation and betterment of services provided by banks. This fact encourages customers’ active participation in the co-creation practice through several benefits: easer credit approval, lower charges, or commitment to the bank ( Mostafa, 2020 ). Hence, value co-creation should drive to reciprocally favorable outcomes for both consumers and businesses.

Adoption of Technology and e-Services Banking

In recent years, the development of Information Technology and the Internet has brought about changes in the performance of traditional services. Thus, e-banking has changed the conventional practices of banks and financial institutions and has captured the attention of both academics and practitioners ( Wang et al., 2017 ). The adoption of e-banking is considered an innovative distribution channel for financial services due to rapid advances in e-banking applications and intense competence ( Sikdar et al., 2015 ; Yaseen and El Qirem, 2018 ). Thus, understanding the adoption and use of e-banking has become a central research field. The literature indicates that the most relevant strength of the TAM, developed by Davis et al. (1989) , is its generalizability and applicability in different contexts ( Yaseen and El Qirem, 2018 ). This model is specifically indicated to study the intention to adopt specific technologies. Thus, the TAM applies models to study the acceptance and intention to use information system tools such as mobile commerce (e.g., Natarajan et al., 2018 ), m-banking (e.g., Mostafa, 2020 ; Shankar et al., 2020 ) and e-banking ( Yoon and Steege, 2013 ; Salimon et al., 2017 ; Yaseen and El Qirem, 2018 ; Ahmad et al., 2019 ), among others. The original TAM considers perceived usefulness and perceived ease of use has a significant role in the technology acceptance process ( Davis et al., 1989 ). On one side, perceived ease of use is defined as the degree to which a person believes that using a particular system is effortless, both physically and mentally. On the other side, perceived utility is described as the degree to which consumers believe that using a system will increase their performance ( Davis et al., 1989 ; Mostafa, 2020 ). Some previous studies in technology acceptance demonstrate that perceived ease of use has a positive effect, mediated by perceived usefulness on the intention to use technology ( Natarajan et al., 2018 ).

In the context of e-banking, it is observed that perceived usefulness represents one of the critical aspects that explain behavior intention to use e-banking ( Malaquias and Hwang, 2019 ). For example, e-banking provides some unique services that are not available in offline banking, such as access to banking services at any time and from anywhere ( Yoon and Steege, 2013 ; Shankar and Jebarajakirthy, 2019 ). Similarly, previous studies show the influence of perceived ease of using e-banking on perceived usefulness and attitude (e.g., Deb and Lomo-David, 2014 ). Internet and mobile technology should improve convenience for customers, and its ease of use is critical in customer usage. Some authors (e.g., Riquelme and Rios, 2010 ) claim that adopting mobile banking is influenced by consumer’s perceived ease of use due to a complex system when it performs financial transactions. In this sense, the authors highlight that if consumers perceive the performance of a financial transaction as easy through mobile devices, they will have a more favorable attitude toward adopting mobile banking ( Zhang et al., 2018 ). Ahmad et al. (2019) argue that a client’s beliefs about the usability of the website or application affect his or her attitude toward the website or application. These authors state that the ease of use of e-banking systems is a critical factor in their adoption and evaluation by clients. Thus, the relationship between consumers’ attitudes toward the use of technology, an excellent example of this is e-banking, and perceived ease of use is studied (e.g., Zhang et al., 2018 ). Moreover, Mostafa (2020) argues that customers may negatively evaluate using e-banking if they believe e-banking technology is challenging to use and learn. Thus, the following hypotheses are proposed:

H1. Perceived ease of use positively influences on perceived usefulness of e-banking.

H2. Perceived ease of use positively influences on attitude toward using e-banking.

Another dimension included in the TAM model is the perceived usefulness. This concept and its role have been examined in e-banking works (e.g., Yoon and Steege, 2013 ; Salimon et al., 2017 ; Malaquias and Hwang, 2019 ). Perceived usefulness can be defined as a person’s belief about if the use of a specific technology will improve their task performance ( Davis et al., 1989 ; Natarajan et al., 2018 ). Authors such as Yoon and Steege (2013) state that perceived utility is a positive and determining element in e-banking usage. Similarly, this term is the principal factor that impacts consumers’ attitudes toward the use of technology ( Deb and Lomo-David, 2014 ). Consequently, customers will evaluate e-banking usage favorably if they perceive that e-banking has a relative advantage over other alternatives ( Mostafa, 2020 ). Recently, authors such as Ahmad et al. (2019) have highlighted the positive relationship of perceived usefulness with both attitudes toward using e-banking and user intention. According to the previous statements, the following hypotheses are formulated:

H3. Perceived usefulness positively influences on attitude toward using e-banking.

H4. Perceived usefulness positively influences on intention to use e-banking.

The concept of attitude toward the behavior reflects the degree to which an individual assesses a specific behavior as useful or not ( Ajzen, 1991 ). Venkatesh et al. (2003) interpret attitudes toward a specific innovation as results of an individual’s own beliefs about an objective and the evaluations associated with those beliefs. In TAM’s scope, positive attitudes toward innovative technologies have confirmed antecedents of intentions to adopt them ( Davis et al., 1989 ; Schierz et al., 2010 ). The association among attitude and intention to use has been broadly examined in the literature, particularly in the banking literature (e.g., Shaikh and Karjaluoto, 2015 ; Zhang et al., 2018 ; Ahmad et al., 2019 ; Mostafa, 2020 ).

Similarly, past research shows that attitude is an essential determinant of behavioral intention and a relevant antecedent of actual behavior. Consequently, the intention to adopt has been analyzed to understand people’s actual behavior ( Davis et al., 1989 ; Zhang et al., 2018 ). Yaseen and El Qirem (2018) conceptualize behavior intention to adopt e-banking services as a measure of the strength of an individual’s intention to perform a specific behavior. Also, authors such as Ahmad et al. (2019) explain behavioral intention to use e-banking as a precedent to the actual use of e-banking. Based on prior studies, the following hypotheses are proposed:

H5. Attitude toward using e-banking positively influences on intention to use e-banking.

H6. Intention to use e-banking positively influences on e-banking usage.

Based on the above, Figure 1 summarizes the hypotheses of the proposed conceptual model.

Figure 1. Model proposed on the e-banking usage with PLS-SEM.

Materials and Methods

Study design.

To test the proposed hypotheses, the authors carried out a study in Southern Europe’s banking industry. Specifically, the research was conducted in Spain due to the recent increase in e-banking in this country. e-Banking has experienced a growing acceptance in Spain in recent years, with more than 50% of digital banking population users. Some figures indicate that the number of Spain’s e-banking users increased to 28% between 2011 and 2019 ( Statista, 2020a ). Santander Group ranked first with more than 36 million digital customers during 2019, followed by BBVA with 31 million ( Statista, 2020b ).

A convenience sampling method was used to collect the data, taking e-banking users’ opinions as reference. A convenience sampling method was used to collect the data, taking e-banking users’ opinions as reference. Data was collected via an online survey from February to April 2020. Potential respondents in Spain were recruited through a national consumer panel. To measure each of the constructs, a self-administered survey has been used to analyze the e-banking usage of a set of well-known banks located in Spain. The application of PLS-SEM requires a minimum sample size. For this purpose, the statistical power is analyzed using G ∗ Power 3.1.9.7 ( Carranza et al., 2020 ). Thus, the statistical power value for this sample considering a medium effect size ( f 2 = 0.15) is 0.989, higher than the established minimum of 0.8 ( Cohen, 1988 ; Hair et al., 2019 ). Of 105 e-banking users (see Table 1 ), 45.7% of the sample collected is composed of men and 54.3% of women. Concerning age, the largest group is integrated by individuals between 24 and 33 years old, representing 32.4% of the sample. In addition, the accumulated percentage of consumers up to 43 years of age is 67.6%. Hence, the sample is predominantly made up of young adults and mid-aged e-banking users. Thus, this study coincides with previous studies in e-banking such as Zhang et al. (2018) , Malaquias and Hwang (2019) , Mostafa (2020) , Singh and Srivastava (2020) , where the samples are mostly composed of young people considered more likely to use digital technologies and media. Moreover, 35.3% of the respondents are employees, 43.8% are singles, and 37.1% are married. Concerning consumption factors, 93.3% of the sample uses e-banking to check their bank account balance, 49.5% make bank transfers through e-baking, and 15.2% manage invoices and taxes.

Table 1. Characteristics of the survey sample.

In order to measure the constructs included in this study and examine the proposed relationships, a structured questionnaire was used. Firstly, questions related to the frequency and habits of the use of electronic banking were included. Then, the variables associated with the attitude and behavior toward using e-banking were exposed. All these constructs were evaluated with multi-item scales confirmed by previous studies, using a Likert scale ranging from 1 to 5, except the construct intended to use, presented on a semantic differential scale (see Table 2 ). Thus, variables for perceived ease of use were based on Davis et al. (1989) and Venkatesh et al. (2003) . The attitude toward using e-banking was measured through a semantic differential scale using six items (five bipolar pairs of adjectives). Several authors, such as Stern and Salb (2015) , define the attitude as a formative construct characterized mainly by affective aspects and instrumental distinctions. According to the scales proposed by Davis et al. (1989) , Venkatesh et al. (2003) , and Carranza et al. (2020) in the area of technology acceptance, the attitude variable was measured using three significant items (unpleasant-attractive, unsatisfactory-satisfactory, boring-fun) and three instrumental items (bad-good, uninteresting-appealing, harmful-beneficial).

Table 2. Measurement of key concepts.

The perceived usefulness was measured using the Agarwal and Karahanna (2000) scale, following Mostafa’s (2020) work. Intention to use was measured using a single-item scale based on previous research, such as Bigné et al. (2008) . Three items adapted from Davis et al. (1989) and Dutot (2015) were used to measure e-banking usage. The last section of the questionnaire aims to collect information on the socio-demographic profile of e-banking users, such as gender, age, or occupation.

Statistical Analysis

The model was estimated using PLS-SEM. PLS-SEM is a technique of structural equation models based on variance. In this study, the use of PLS-SEM is recommended because (1) the study includes a formative construct (attitude toward using e-banking), (2) the model uses composite models ( Hair et al., 2019 ), and (3) PLS-SEM is applied in recent studies of TAM, in the field of e-banking, as well as in other different areas (e.g., Salimon et al., 2017 ; Carranza et al., 2020 ; Zollo et al., 2020 ). To estimate the proposed model, SmartPLS 3.2.9 was used. According to Hair et al. (2019) , a two-stage approach is used to evaluate the proposed model in this e-banking customers’ context. Thus, the measurement model is evaluated distinguishing the variables considered as a composite model in Mode A and Mode B, and then, the structural model is assessed.

Measurement Model

First, the standardized root mean square residual (SRMR) of the proposed model is calculated in order to assess the model fit ( Henseler et al., 2016 ). In this case, the SRMR value is 0.070, indicate an appropriate fit, given the accepted 0.008 cut-off point. To evaluate the measurement model, the reliability of the scales is studied for the construct’s perceived ease of use, perceived usefulness, intention to use, and e-banking usage (Mode A). Thus, the loadings of the indicators are examined, all of which are higher than 0.708. The evaluation of individual reliability is examined through the Dijkstra–Henseler’s rho (ρ A ) and the composite reliability (CR) being higher than 0.7 in all cases ( Hair et al., 2019 ). Therefore, all the variables included in the model reflect high internal consistency (see Table 3 ). Then, the average variance extracted (AVE) is used to evaluate convergent validity. In this case, all values of the AVE are within the established thresholds limits ( Fornell and Larcker, 1981 ). Lastly, all loadings are significant at 99.9% ( Hair et al., 2017 ). Concerning the analysis of the discriminant validity, the results obtained by the Fornell–Larcker criterion show a satisfactory degree of discriminant validity. However, Henseler et al. (2015) suggest construct thresholds below 0.9 for HTMT to establish discriminant validity. In this case, problems of discriminant validity between PEU and PU are detected. For that reason, the items causing the problem are studied and eliminated (see Table 4 ).

Table 3. Measurement model evaluation.

Table 4. Measurement model: discriminant validity.

To evaluate the validity of the attitude toward using e-banking, the variance inflation factor (VIF) is used to assess the lack of collinearity problems by the indicators (VIF < 5) (see Table 5 ). Finally, for the significance value of the weights, ATT4 and ATT6 are not significant. However, according to Hair et al. (2019) , since there are no collinearity problems and the loads are greater than 0.5, these indicators are not deleted.

Table 5. Measurement model: model composite Mode B.

Structural Model

After checking the reliability and validity of the measurement model, the proposed structural model is examined. To do this, the explanatory capacity of the model is evaluated using R 2 ( Hair et al., 2019 ). The R 2 values are 0.657 for perceived usefulness, 0.530 for attitude toward using e-banking, 0.462 for intention to use, and 0.324 for e-banking usage. After performing an analysis of the variance decomposition, the findings confirm that, of the 53% of the explained variance of attitude toward using e-banking, 29.1% is due to perceived ease of use and 23.9% to perceived usefulness. Similarly, of the 46.2% of explained variance of intention to use, 14.4% is due to perceived usefulness, and 31.8% is due to attitude toward using e-banking. Even though these results confirm significant relationships, the influence of consumers’ attitudes toward the intention to use e-banking is greater than the contribution of the perceived usefulness.

On the other hand, the path coefficients and their significance are evaluated to describe the significance of the structural relationships proposed in the model (see Table 6 ). Perceived ease of use appears to be positive and significant, at 99.9% in perceived usefulness. Thus, H1 is supported, being the most solid association of the model (β = 0.811). As proposed in H2 and H3, perceived ease of use and perceived usefulness are positively associated with the attitude toward using e-banking (β = 0.417 and 0.348, respectively). Similarly, perceived usefulness has a significant influence on the intention to use of e-banking, also confirming H4 (β = 0.248). Also, attitude toward using e-banking, in general, has a significant and positive effect on the intention to use e-banking. Thus, H5 is established (β = 0.485). Finally, the intention to use has a significant influence on e-banking usage. Therefore, H6 is also confirmed (β = 0.569) ( Hair et al., 2019 ). Thus, hypotheses H1, H2, H3, H4, H5, and H6 are accepted by the percentile method.

Table 6. Structural model evaluation.

After evaluating and confirming the proposed model, the effect size is evaluated ( Hair et al., 2019 ). Thus, the results show that (see Table 6 ), the perceived ease of use has a large effect size on perceived usefulness ( f 2 = 1.915). Likewise, the intention to use has a significant and large effect size on e-banking usage ( f 2 = 0.479). Finally, the model’s predictive relevance is analyzed. In this case, Stone–Geisser’s Q 2 shows that the scores are higher than naught (see Table 6 ).

To improve these results, the IPMA is used. The IPMA expands the reported PLS-SEM results for path coefficient estimates by adding a dimension to the analysis that considers the mean values of the latent variable scores ( Ringle and Sarstedt, 2016 ). In this case, the IPMA for e-banking users (see Figure 2 ) shows that intention to use is observed to be the most critical factor in determining e-banking usage. An increase of one point in the performance of intention to use by a total effect of 0.786. Attitude toward using e-banking has higher importance on e-banking usage but lower than the intention to use. Similarly, the attitude has a lower performance than the intention to use. The perceived ease of use is the factor with the lowest performance. Finally, perceived usefulness has the lowest importance in determining e-banking usage (see Figure 2 ).

Figure 2. Importance-performance map analysis (IPMA) for e-banking usage.

This study developed a research framework to understand the factors that contribute to e-banking usage and to benefit business strategies based on the co-creation of consumer value. The model provides a comprehensive view of the main factors influencing e-banking intentions and the elements that should be considered to increase usage.

The results obtained concerning the application of TAM in the context of e-banking confirm the presence of significant relationships among perceived ease of use and perceived usefulness by the customer, being the most real relationship of the proposed model. Similarly, the relationships between perceived usefulness and attitude toward using e-banking, perceived ease of use and attitude toward using e-banking are also contrasted. However, the importance that perceived ease of use acquires in the attitude toward using e-banking is slightly higher than the influence that perceived usefulness has on this variable. Similarly, the relationships between perceived usefulness and intention to use, and attitude toward using e-banking and intention to use are also contrasted with previous studies, such as Salimon et al. (2017) , Zhang et al. (2018) , and Malaquias and Hwang (2019) . Nevertheless, the results of the analysis of variance decomposition indicate that attitude toward using e-banking has relatively greater importance in intention to use compared to perceived usefulness. Therefore, an essential contribution of this research is the determination of attitude as a critical element in the determination of e-banking use intention. These results suggest that when e-banking users have a positive attitude toward using e-banking, it translates into a greater intention to use e-banking. Finally, the relationship between intention to use and e-banking usage is also verified, being the second strongest relationship of the model. In this sense, the results obtained by the IPMA analysis indicate that the intention to use is the variable with the highest performance and the greatest importance in determining the adoption of e-banking. However, the perception of ease of use, despite the great importance in determining the use of e-banking, is the variable with the lowest performance in the proposed model.

These findings offer important implications for banks and financial institutions. The techniques and results of this study allow banks to identify possible deficiencies and apply improvements to establish greater interaction with their clients. Also, this study offers bank managers new tools that encourage co-creation through e-banking services, helping to achieve a competitive advantage.

Based on the results obtained, bank managers should pay special attention to the perceived ease of use and perceived usefulness of their e-services, since they contribute significantly to the adoption of e-banking by consumers. Perceived ease of use of e-banking services is one of the most relevant factors in the adoption of e-banking by consumers. However, the IPMA indicates that it is the factor with the lowest performance. As a consequence, banks can improve the usability and simplicity of their e-services and the performance of a banking transaction to facilitate and increase the e-banking usage. Likewise, customer service can be provided to guide and help the efficient use of these applications. Specifically, some authors such as Mostafa (2020) recommend the use of chatbot to facilitate the use of e-banking and co-create. Concurrently, the findings have shown the great importance of attitude in generating intention to use e-banking by consumers. Therefore, banks should encourage this attitude in consumers through the ease of use and usefulness provided by e-services.

By and large, as technology and smartphone advance, consumers will continue to seek out more personalized and utilitarian services for their banking operations. Therefore, e-banking should be secure, and easy to learn and use. For this reason, providing reliable, user-friendly, and useful e-services are a crucial element in the interactions between consumer adoption of e-banking.

Limitations and Further Research

This study has some limitations that need to be addressed. The first limitation is the geographical location of the sample and the size of the sample. Future studies should incorporate a more significant number of online banking users covering a wider geographical area. Similarly, this study can increase the number of respondents between 34 and 53-year-old. Secondly, this study has not considered the moderating role of gender and age as socio-demographic variables. Previous authors, such as Natarajan et al. (2018) , consider age as a great relevance in studies of acceptance of mobile applications. Further research may assess the moderating role of this variable in the proposed model. Thirdly, this model is based exclusively on functional characteristics of technology adoption, such as perceived ease of use and perceived usefulness. In the area of e-banking, authors such as Zhang et al. (2018) highlight other types of more emotional factors for the study of the adoption of e-banking services such as enjoyment or trust. Likewise, Singh and Srivastava (2020) highlight the perceived security in the factors of adoption of e-banking. Thus, a future proposal could include a combination of functional and emotional elements in e-banking environments. Finally, further research could incorporate external variables associated with value co-creation, such as the confidence in the bank. Some studies, such as Mostafa (2020) , suggest that consumer confidence in the bank can intensify the positive effect of the attitude toward e-banking. If customers believe that their bank is honest and professional, their positive attitude toward the use of e-banking will result in a disposition to co-create value with the bank by sharing information or providing feedback.

Data Availability Statement

The raw data supporting the conclusions of this article will be made available by the authors, without undue reservation.

Author Contributions

All authors listed have made a substantial, direct and intellectual contribution to the work, and approved it for publication.

This work was financed by group grants from the University of Castilla–La Mancha and co-financed by the European Union through the European Regional Development Fund (Project reference: 2020-GRIN-28990). Research Group: Research and Modelling in Marketing and Tourism (RMMT).

Conflict of Interest

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Agarwal, R., and Karahanna, E. (2000). Time flies when you are having fun: cognitive absorption and beliefs about information technology usage. MIS Q . 24, 665–694. doi: 10.2307/3250951

CrossRef Full Text | Google Scholar

Ahmad, S., Bhatti, S. H., and Hwang, Y. (2019). E-service quality and actual use of e-banking: explanation through the technology acceptance model. Inf. Dev. 36, 503–519. doi: 10.1177/0266666919871611

Ajzen, I. (1991). The theory of planned behavior. Organ. Behav. Hum. Decis. Process. 50, 179–211. doi: 10.1016/0749-5978(91)90020-T

Akter, S., Motamarri, S., Hani, U., Shams, R., Fernando, M., Babu, M. M., et al. (2020). Building dynamic service analytics capabilities for the digital marketplace. J. Bus. Res . 118, 177–188. doi: 10.1016/j.jbusres.2020.06.016

Andreu, L., Saìnchez, I., and Mele, C. (2010). Value co-creation among retailers and consumers: new insights into the furniture market. J. Retail. Consum. Serv. 17, 241–250. doi: 10.1016/j.jretconser.2010.02.001

Baabdullah, A. M., Alalwan, A. A., Rana, N. P., Patil, P., and Dwivedi, Y. K. (2019). An integrated model for m-banking adoption in Saudi Arabia. Int. J. Bank Mark . 37, 452–478. doi: 10.1108/IJBM-07-2018-0183

Bankia (2020). Bankia Presenta el ‘Humanismo Digital’, Una Nueva Forma de Relacionarse Con Sus Clientes Basada en la Tecnología y las Personas. Available online at: https://www.bankia.com/es/comunicacion/noticias/bankia-humanismo-digital-clientes-tecnologia.html (accessed October 7, 2020).

Google Scholar

Bigné, E., Ruiz, C., Aldás, J., and Sanz, S. (2008). Influence of online shopping information dependency and innovativeness on internet shopping adoption. Online Inf. Rev . 32, 648–667. doi: 10.1108/14684520810914025

Carranza, R., Díaz, E., Martín-Consuegra, D., and Fernández-Ferrín, P. (2020). PLS–SEM in business promotion strategies. A multigroup analysis of mobile coupon users using MICOM. Ind. Manag. Data Syst. 120, 2349–2374. doi: 10.1108/IMDS-12-2019-0726

Chepurna, M., and Criado, J. R. (2018). Identification of barriers to co-create online: the perspectives of customers and companies. J. Res. Interact. Mark . 12, 452–471. doi: 10.1108/JRIM-01-2018-0018

Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences , 2 Edn. Hillsdale, NJ: Erlbaum.

Davis, F. D., Bagozzi, R. P., and Warshaw, P. R. (1989). User acceptance of computer technology: a comparison of two theoretical models. Manage. Sci. 35, 982–1003. doi: 10.1287/mnsc.35.8.982

PubMed Abstract | CrossRef Full Text | Google Scholar

Deb, M., and Lomo-David, E. (2014). An empirical examination of customers’ adoption of m-banking in India. Mark. Intell. Plan. 32, 475–494. doi: 10.1108/MIP-07-2013-0119

Dutot, V. (2015). Factors influencing near field communication (NFC) adoption: an extended TAM approach. J. High Technol. Manag. Res . 26, 45–57. doi: 10.1016/j.hitech.2015.04.005

Fornell, C., and Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. J. Mark. Res. 18, 39–50. doi: 10.1177/002224378101800104

Glavee-Geo, R., Shaikh, A. A., and Karjaluoto, H. (2017). Mobile banking services adoption in Pakistan: are there gender differences? Int. J. Bank Mark. 35, 1090–1114. doi: 10.1108/IJBM-09-2015-0142

Grönroos, C. (2011). Value co-creation in service logic: a critical analysis. Mark. Theory 11, 279–301. doi: 10.1177/1470593111408177

Hair, J. F., Risher, J. J., Sarstedt, M., and Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. Eur. Bus. Rev . 31, 2–24. doi: 10.1108/EBR-11-2018-0203

Hair, J. F., Sarstedt, M., Ringle, C. M., and Gudergan, S. P. (2017). Advanced Issues in Partial Least Squares Structural Equation Modeling. Thousand Oaks, CA: SAGE Publications.

Henseler, J., Hubona, G., and Ray, P. A. (2016). Using PLS path modeling in new technology research: updated guidelines. Ind. Manag. Data Syst . 116, 2–20. doi: 10.1108/IMDS-09-2015-0382

Henseler, J., Ringle, C. M., and Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modelling. J. Acad. Mark. Sci . 43, 115–135. doi: 10.1007/s11747-014-0403-8

Hosseini, M., Shajari, S., and Akbarabadi, M. (2020). Identifying multi-channel value co-creator groups in the banking industry. J. Retail. Consum. Serv. (in press). doi: 10.1016/j.jretconser.2020.102312

Ind, N., and Coates, N. (2013). The meaning of co-creation. Eur. Bus. Rev . 25, 86–95. doi: 10.1108/09555341311287754

Mainardes, E. W., Teixeira, A., and Romano, P.C.d.S (2017). Determinants of co-creation in banking services. Int. J. Bank Mark. 35, 187–204. doi: 10.1108/IJBM-10-2015-0165

Malaquias, R. F., and Hwang, Y. (2019). Mobile banking use: a comparative study with Brazilian and U.S. participants. Int. J. Inf. Manag . 44, 132–140. doi: 10.1016/j.ijinfomgt.2018.10.004

Malar, D. A., Arvidsson, V., and Holmstrom, J. (2019). Digital transformation in banking: exploring value co-creation in online banking services in India. J. Glob. Inf. Technol. Manag. 22, 7–24. doi: 10.1080/1097198X.2019.1567216

Martovoy, A., and Santos, J. (2012). Co-creation and co-profiting in financial services. Int. J. Entrep. Innov. Manag. 16, 114–135. doi: 10.1504/IJEIM.2012.050446

Medberg, G., and Heinonen, K. (2014). Invisible value formation: a netnography in retail banking. Int. J. Bank Mark . 32, 590–607. doi: 10.1108/IJBM-03-2014-0041

Mostafa, R. B. (2020). Mobile banking service quality: a new avenue for customer value co-creation. Int. J. Bank Mark . 38, 1107–1132. doi: 10.1108/IJBM-11-2019-0421

Natarajan, T., Balasubramanian, S. A., and Kasilingam, D. L. (2018). The moderating role of device type and age of users on the intention to use mobile shopping applications. Technol. Soc. 53, 79–90. doi: 10.1016/j.techsoc.2018.01.003

O’Hern, M., and Rindfleisch, A. (2010). Customer co-creation: a typology and research agenda. Rev. Mark. Res . 6, 84–106. doi: 10.1108/S1548-643520090000006008

Oliveira, P., and von Hippel, E. (2011). Users as service innovators: the case of banking services. Res. Policy . 40, 806–818. doi: 10.1016/j.respol.2011.03.009

Payne, A., Storkbacka, K., and Frow, P. (2008). Managing the co-creation of value. J. Acad. Mark. Sci . 36, 83–96. doi: 10.1007/s11747-007-0070-0

Ringle, C. M., and Sarstedt, M. (2016). Gain more insight from your PLS-SEM results: the importance-performance map analysis. Ind. Manage. Data Syst. 116, 1865–1886. doi: 10.1108/IMDS-10-2015-0449

Riquelme, H. E., and Rios, R. E. (2010). The moderating effect of gender in the adoption of mobile banking. Int. J. Bank Mark. 28, 328–341. doi: 10.1108/02652321011064872

Salimon, M. G., Bin Yusoff, R. Z., Sanuri, S., and Mokhtar, M. (2017). The mediating role of hedonic motivation on the relationship between adoption of e-banking and its determinants. Int. J. Bank Mark. 35, 558–582. doi: 10.1108/IJBM-05-2016-0060

Schierz, P., Schilke, O., and Wirtz, B. (2010). Understanding customer acceptance of mobile payment services: an empirical analysis. J. Electron. Commer. Res. Appl. 9, 209–216. doi: 10.1016/j.elerap.2009.07.005

Schreieck, M., and Wiesche, M. (2017). “How established companies leverage it platforms for value co-creation – insights from banking,” in Proceedings of the 25 the European Conference on Information Systems , Guimarães.

Shaikh, A. A., and Karjaluoto, H. (2015). Mobile banking adoption: a literature review. Telemat. Inform . 32, 129–142. doi: 10.1016/j.tele.2014.05.003

Shankar, A., and Jebarajakirthy, C. (2019). The influence of e-banking service quality on customer loyalty: a moderated mediation approach. Int. J. Bank Mark . 37, 1119–1142. doi: 10.1108/IJBM-03-2018-0063

Shankar, A., Jebarajakirthy, C., and Ashaduzzaman, M. (2020). How do electronic word of mouth practices contribute to mobile banking adoption? J. Retail. Consum. Serv . 52:101920. doi: 10.1016/j.jretconser.2019.101920

Sikdar, P., Kumar, A., and Makkad, M. (2015). Online banking adoption a factor validation and satisfaction causation study in the context of Indian banking customers. Int. J. Bank Mark. 33, 760–785. doi: 10.1108/ijbm-11-2014-0161

Singh, S., and Srivastava, R. K. (2020). Understanding the intention to use mobile banking by existing online banking customers: an empirical study. J. Financ. Serv. Mark. 25, 86–96. doi: 10.1057/s41264-020-00074-w

Statista (2020a). Tasa de Penetración de los Servicios de Banca Online en España. Available online at: https://es.statista.com/estadisticas/501217/tasa-de-penetracion-de-los-servicios-de-banca-online-en-espana/ (accessed July 28, 2020).

Statista (2020b). Número de Clientes Digitales de los Principales Bancos con Presencia Digital en España. Available online at: https://es.statista.com/estadisticas/506244/numero-de-clientes-digitales-de-los-principales-bancos-con-presencia-digital-en-espana/ (accessed July 29, 2020).

Stern, T., and Salb, D. (2015). Examining profile disclosure on online social networks: an affective, behavioural, and cognitive perspective. Int. J. Electron. Bus . 12, 162–184. doi: 10.1504/ijeb.2015.069106

Venkatesh, V., Morris, M. G., Davis, G. B., and Davis, F. D. (2003). User acceptance of information technology: toward a unified view. MIS Q . 27, 425–478. doi: 10.2307/30036540

Wang, M., Cho, S., and Denton, T. (2017). The impact of personalisation and compatibility with past experience on e-banking usage. Int. J. Bank Mark . 35, 45–55. doi: 10.1108/IJBM-04-2015-0046

Yaseen, S. G., and El Qirem, I. A. (2018). Intention to use e-banking services in the Jordanian commercial banks. Int. J. Bank Mark. 36, 557–571. doi: 10.1108/IJBM-05-2017-0082

Yoon, H. S., and Steege, L. M. B. (2013). Development of a quantitative model of the impact of customers’ personality and perceptions on internet banking use. Comput. Hum. Behav . 29, 1133–1141. doi: 10.1016/j.chb.2012.10.005

Zhang, T., Lu, C., and Kizildag, M. (2018). Banking “on-the-go”: examining customers” adoption of mobile banking services. Int. J. Qual. Serv. Sci . 10, 279–295. doi: 10.1108/IJQSS-07-2017-0067

Zollo, L., Carranza, R., Faraoni, M., Díaz, E., and Martín-Consuegra, D. (2020). What influences consumers’ intention to purchase organic personal care products? The role of social reassurance. J. Retail. Consum. Serv. (in press). doi: 10.1016/j.jretconser.2020.102432

Keywords : customer value co-creation, e-banking, e-services, technology acceptance model, PLS-SEM

Citation: Carranza R, Díaz E, Sánchez-Camacho C and Martín-Consuegra D (2021) e-Banking Adoption: An Opportunity for Customer Value Co-creation. Front. Psychol. 11:621248. doi: 10.3389/fpsyg.2020.621248

Received: 25 October 2020; Accepted: 21 December 2020; Published: 14 January 2021.

Reviewed by:

Copyright © 2021 Carranza, Díaz, Sánchez-Camacho and Martín-Consuegra. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) . The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

*Correspondence: Rocío Carranza, [email protected]

Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

Case Study: Will a Bank’s New Technology Help or Hurt Morale?

• Leonard A. Schlesinger

A CEO weighs the growth benefits of AI against the downsides of impersonal decision making.

Beth Daniels, the CEO of Michigan’s Vanir Bancorp, sat silent as her chief human resources officer and chief financial officer traded jabs. The trio had founded their community bank three years earlier with the mission of serving small-business owners, particularly those on the lower end of the credit spectrum. After getting a start-up off the ground in a mature, heavily regulated industry, they were a tight-knit, battle-tested team. But the current meeting was turning into a civil war.

• Leonard A. Schlesinger is the Baker Foundation Professor at Harvard Business School, where he serves as chair of its practice-based faculty.

Partner Center

E-banking Overview: Concepts, Challenges and Solutions

• Published: 28 November 2020
• Volume 117 , pages 1059–1078, ( 2021 )

Cite this article

• Belbergui Chaimaa 1 ,
• Elkamoun Najib 1 &
• Hilal Rachid 1  

4768 Accesses

23 Citations

1 Altmetric

Explore all metrics

The expansion of information technology has led to a new form of banking. Traditional banking, based on the physical presence of the customer, is only a part of banking activities. In the last few years, electronic banking has emerged, adopting a new distribution channels like Internet and mobile services. The main goal was to allow businesses to improve the quality of service delivery and reduce transaction cost, and anytime and anywhere service demand for customers. However, it increased the vulnerability to fraudulent activities like spamming, phishing and credit card frauds. Then, the main challenge that opposes electronic banking is ensuring banking security. In this context, this paper aims to provide an overview of the electronic banking service highlighting various aspects, investigating various challenges and risks, and discussing some proposed solutions.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Subscribe and save.

• Get 10 units per month
• Download Article/Chapter or eBook
• 1 Unit = 1 Article or 1 Chapter
• Cancel anytime

Price includes VAT (Russian Federation)

Instant access to the full article PDF.

Rent this article via DeepDyve

Institutional subscriptions

Similar content being viewed by others

New Trends in the Banking Sector and the Development of E-Banking

A Study of Digital Banking: Security Issues and Challenges

Study of Online Bank in E-Commerce Environment

Explore related subjects.

• Artificial Intelligence

Kurnia, S., Peng, F., & Liu, Y. R. (2010). Understanding the adoption of electronic banking in China. In 43rd Hawaii International Conference on System Sciences , Honolulu, Hawaii, USA, pp. 1–10.

Vrîncianu, M., & Popa, L. A. (2010). Considerations regarding the security and protection of e-banking services consumers’ interests. The Amfiteatru Economic Journal , 12 (28), 388–403.

Google Scholar  

Peotta, L., Holtz, M. D., David, B. M., Deus, F. G., & Timoteo de Sousa, R. (2011). A formal classification of internet banking attacks and vulnerabilities. International Journal of Computer Science and Information Technology, 3 (1), 186–197.

Article   Google Scholar  

Drig, I., & Isac, C. (2014). E-banking services – Features, challenges and benefits. 10.

Chavan, J. (2013). Internet banking – Benefits and challenges in an emerging economy. International Journal of Research in Business Management, 1 (1), 19–26.

MathSciNet   Google Scholar  

Singhal, D., & Padhmanabhan, V. (2009). A study on customer perception towards internet banking: Identifying major contributing factors. Journal of Nepalese Business Studies, 5 (1), 101–111.

Liao, S., Shao, Y. P., Wang, H., & Chen, A. (1999). The adoption of virtual banking: An empirical study. International Journal of Information Management, 19 (1), 63–74.

Bahl, D. S. (2012). E-banking: Challenges and policy implications. International Journal of Computing & Business Research , 229–6166.

Zarei, S. (2011). Risk management of internet banking. In 10th WSEAS International conference on Artificial Intelligence, Knowledge Engineering and Data Bases , Cambridge, UK, pp. 134–139.

Hanaek, P., Malinka, K., & Schafer, J. (2008). E-banking security - comparative study. In 42nd Annual IEEE International Carnahan Conference on Security Technology , Prague, Czech Republic, pp. 326–330.

Omariba, Z. B., & Masese, N. B. (2012). Security and privacy of electronic banking. International Journal of Computer Science Issues (IJCSI), 9 (4), 432–446.

Park, K. C., Shin, J. W., & Lee, B. G. (2014). Analysis of authentication methods for smartphone banking service using ANP. KSII Transactions on Internet & Information Systems, 8 (6).

Brar, T. P. S., Sharma, D., & Khurmi, S. S. (2012). Vulnerabilities in e-banking: A study of various security aspects in e-banking. International Journal of Computing & Business Research .

Yang, Y. J. (1997). The security of electronic. In International Systems Security Conference , pp. 41–52.

Yang, J., Cheng, L., & Luo, X. (2009). A comparative study on e-banking services between China and USA. International Journal of Electronic Finance, 3 (3), 235–252.

Zahid, N., Mujtaba, A., & Riaz, A. (2010). Consumer acceptance of online banking. European Journal of Economics, Finance and Administrative Sciences, 27 (1).

Geetha, K. T., & Malarvizhi, V. (2011). Acceptance of E-banking among customers: An empirical investigation in India. The Journal of Internet Banking and Commerce, 15 (2), 1–17.

Deb, M., & Lomo-David, E. (2014). An empirical examination of customers’ adoption of m-banking in India. Marketing Intelligence & Planning, 32 (4), 475–494.

Lee, J. H., Lim, W. G., & Lim, J. I. (2013). A study of the security of Internet banking and financial private information in South Korea. Mathematical and Computer Modelling, 58 (1–2), 117–131.

Moga, L., Nor, K., Neculita, M., & Khani, N. (2012). Trust and security in e-banking adoption in Romania. Communications of the IBIMA , 1–10.

Komb, F., Korau, M., Belás, J., & Korauš, A. (2016). Electronic banking security and customer satisfaction in commercial banks. Journal of Security and Sustainability Issues, 5 (3), 411–422.

Ranaweera, H. (2019). Risk of electronic payments of the banking sector in Sri Lanka: Case of Colombo district. 4 (1).

Rajaratnam, A. (2019). The factors influencing on internet banking adoption in Trincomalee District, Sri Lanka, Sri Lanka. International Research Journal of Advanced Engineering and Science, 4 (1), 160–164.

Hasan, A. S., Baten, M. A., Kamil, A. A., & Parveen, S. (2010). Adoption of e-banking in Bangladesh: An exploratory study. African Journal of Business Management, 4 (13), 2718–2727.

Jalal, A., Marzooq, J., & Nabi, H. A. (2011). Evaluating the impacts of online banking factors on motivating the process of e-banking. Journal of Management and Sustainability, 1 (1).

Abukhzam, M., & Lee, A. (2010). Factors affecting bank staff attitude towards E-banking adoption in Libya. The Electronic Journal of Information Systems in Developing Countries, 42 (1), 1–15.

Abdellatif, T., Jinene, C., & Khazmi, N. (2014). Une cartographie de la résistance à l’adoption du M-Banking en Tunisie [Mapping of resistance to the adoption of M-Banking in Tunisia]. 8 (1).

Halime, Z. F., & Kirmi, B. Etude de la résistance à l’adoption et l’utilisation de la banque mobile. Management Research .

Floh, A., & Treiblmaier, H. (2006). What keeps the e-banking customer loyal? A multigroup analysis of the moderating role of consumer characteristics on e-loyalty in the financial service industry. SSRN Electronic Journal .

Gunson, N., Marshall, D., Morton, H., & Jack, M. (2011). User perceptions of security and usability of single-factor and two-factor authentication in automated telephone banking. Computers & Security, 30 (4), 208–220.

Weir, C. S., Douglas, G., Richardson, T., & Jack, M. (2010). Usable security: User preferences for authentication methods in eBanking and the effects of experience. Interacting with Computers, 22 (3), 153–164.

Ahmad, D. T., & Hariri, M. (2012). User acceptance of biometrics in e-banking to improve security.

Tassabehji, R., & Kamala, M. A. (2009). Improving e-banking security with biometrics: Modelling user attitudes and acceptance. In 3rd International Conference on New Technologies, Mobility and Security , Cairo, Egypt, pp. 1–6.

Moeckel, C. Human-computer interaction for security research: The case of EU e-banking systems.

Rifà-Pous, H. (2009). A secure mobile-based authentication system for e-banking. In On the Move to Meaningful Internet Systems: OTM, 5871 , 848–860.

Hamidi, N. A., Mahdi Rahimi, G. K., Nafarieh, A., Hamidi, A., & Robertson, B. (2013). Personalized security approaches in e-banking employing flask architecture over cloud environment. Procedia Computer Science, 21 , 18–24.

Alsaiari, H., Papadaki, M., Dowland, P. S., & Furnell, S. M. (2014). Alternative graphical authentication for online banking environments.

Elkhodr, M., Shahrestani, S., & Kourouche, K. (2012). A proposal to improve the security of mobile banking applications. 2012 Tenth International Conference on ICT and Knowledge Engineering (pp. 260–265). IEEE: Bangkok, Thailand.

Chapter   Google Scholar  

Islam Khan, B. U., Olanrewaju, R. F., Anwar, F., & Yaacob, M. (2018). Offline OTP based solution for secure internet banking access. In 2018 IEEE Conference on e-Learning, e-Management and e-Services (IC3e) , Langkawi Island, Malaysia, pp. 167–172.

Brodi, D., & Jankovi, R. (2016). Usability analysis of the specific captcha types. In International Scientific Conference , pp. 272–277.

Hoonakker, P., Bornoe, N., & Carayon, P. (2009). Password authentication from a human factors perspective: Results of a survey among end-users. Human Factors and Ergonomics Society Annual Meeting Proceedings, 53 (6), 459–463.

Mridha, F., Nur, K., Kumar, A., & Akhtaruzzaman, M. (2017). A new approach to enhance internet banking security. International Journal of Computer Applications, 160 (8), 35–39.

Chandanshive, A., Sureka, A., Gongiwala, V., & Nalawade, A. (2018). Access control using 3 level authentications for e-banking. International Journal on Recent and Innovation Trends in Computing and Communication, 6 (4).

Shen, L., Zheng, N., Zheng, S., & Li, W. (2010). Secure mobile services by face and speech based personal authentication. In 2010 IEEE International Conference on Intelligent Computing and Intelligent Systems , Xiamen, China, pp. 97–100.

Onyesolu, M. O., Odoh, M., Akanwa, A. O., & Nwasor, V. C. (2010). Robust authentication model for ATM: A biometric strategy measure for enhancing e-banking security in Nigeria. International Journal of Advanced Research in Computer Science .

Bhosale, S. T. (2012). Security in e-banking via card less biometric. International Journal of Advanced Technology & Engineering Research, 2 (4), 457–462 2(2250).

Plateaux, A., Lacharme, P., Jøsang, A., & Rosenberger, C. (2014). One-time biometrics for online banking and electronic payment authentication. Availability, Reliability, and Security in Information Systems, 8708 , 179–193.

Darwish, S. M., & Hassan, A. M. (2012). A model to authenticate requests for online banking transactions. Alexandria Engineering Journal, 51 (3), 185–191.

Kumbhar, S., & Sahu, S. (2007). A new framework for online transaction using visual cryptography and steganography. International Journal of Innovative Research in Computer and Communication Engineering, 3 (11), 11418–11422.

Yaseen Khudhur, D., Saad Hameed, S., & Al-Barzinji, S. M. (2018). Enhancing e-banking security: Using whirlpool hash function for card number encryption. International Journal of Engineering & Technology, 7 (2.13).

Thompson, L. (2003). Smart card authentication: Added security for systems and network access.

Karia, A., Patankar, D. A. B., & Tawde, P. (2014). SMS-based one time password vulnerabilities and safeguarding OTP over network. International Journal of Engineering Research, 3 (5).

Al-Fairuz, M., & Renaud, K. (2010). Multi-channel, multi-level authentication for more secure eBanking.

Alarifi, A., Alsaleh, M., & Alomar, N. (2017). A model for evaluating the security and usability of e-banking platforms. Computing, 99 (5), 519–535.

Article   MathSciNet   Google Scholar  

Download references

Author information

Authors and affiliations.

STIC Laboratory, Chouaib Doukkali University, El Jadida, Morocco

Belbergui Chaimaa, Elkamoun Najib & Hilal Rachid

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Belbergui Chaimaa .

Additional information

Publisher’s Note Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Chaimaa, B., Najib, E. & Rachid, H. E-banking Overview: Concepts, Challenges and Solutions. Wireless Pers Commun 117 , 1059–1078 (2021). https://doi.org/10.1007/s11277-020-07911-0

Download citation

Accepted : 29 October 2020

Published : 28 November 2020

Issue Date : March 2021

DOI : https://doi.org/10.1007/s11277-020-07911-0

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Authentication
• Find a journal
• Publish with us
• Track your research

• Digital Marketing
• Facebook Marketing
• Instagram Marketing
• Ecommerce Marketing
• Content Marketing
• Data Science Certification
• Machine Learning
• Artificial Intelligence
• Data Analytics
• Graphic Design
• Adobe Illustrator
• Web Designing
• UX UI Design
• Interior Design
• Front End Development
• Back End Development Courses
• Business Analytics
• Entrepreneurship
• Supply Chain
• Financial Modeling
• Corporate Finance
• Project Finance
• Harvard University
• Stanford University
• Yale University
• Princeton University
• Duke University
• UC Berkeley
• Harvard University Executive Programs
• MIT Executive Programs
• Stanford University Executive Programs
• Oxford University Executive Programs
• Cambridge University Executive Programs
• Yale University Executive Programs
• Kellog Executive Programs
• CMU Executive Programs
• 45000+ Free Courses
• Free Certification Courses
• Free DigitalDefynd Certificate
• Free Harvard University Courses
• Free MIT Courses
• Free Excel Courses
• Free Google Courses
• Free Finance Courses
• Free Coding Courses
• Free Digital Marketing Courses

AI in Banking [10 Case Studies] [2024]

In the rapidly altering finance landscape, AI has emerged as a pivotal significance, extending banks’ abilities and reshaping traditional financial patterns. From enhancing customer experiences to mitigating financial risks, AI’s role in banking is pivotal and transformative. This exploration delves into ten distinct case studies where leading banks have successfully implemented AI to address complex challenges in the industry. These examples showcase AI’s innovative applications and highlight its potential to revolutionize banking operations, improve customer service, and bolster financial security. As we navigate through these case studies, we gain insights into the strategic advantages and practical impacts of AI in the banking sector, underscoring its importance in shaping the future of finance.

Related: High-Paying Banking Jobs & Career Paths

Case Study 1: JP Morgan Chase: Streamlining Loan Approvals

The traditional loan approval process is notoriously cumbersome and slow, heavily reliant on manual data handling. This results in prolonged wait times, leading to significant customer dissatisfaction and increasing operational costs due to the extensive need for human oversight and intervention.

To address these inefficiencies, JP Morgan Chase has implemented an advanced AI system that automates key aspects of the loan approval process. This system utilizes machine learning to swiftly and accurately analyze various data points, including applicants’ credit history, recent transaction data, and current financial behaviors. Doing so enhances the speed and accuracy of creditworthiness assessments, reduces reliance on manual processes, and improves overall customer experience by expediting loan approvals.

Overall Impact:

• Increased Speed:  Loan processing times have dramatically reduced from days to minutes and hours.
• Enhanced Customer Satisfaction:  Faster loan approvals increase customer satisfaction and loyalty.
• Cost Efficiency:  Reduced reliance on manual processes decreases operation expenses and improves profitability.
• Scalable Operations:  The bank can handle more loan applications without significantly increasing staff or resources.

Key Learnings:

• Process Efficiency:  AI drastically cuts down the time required for loan approvals.
• Operational Cost Reduction:  Automation reduces the labor-intensive elements of loan processing.
• Enhanced Risk Management:  AI provides a more accurate and comprehensive loan risk assessment.
• Customer Retention:  Improved process speeds and accuracy improve customer retention rates.

Future Prospects:

AI algorithms could be enhanced for faster processing, achieving near-instant approval times. Future iterations may further integrate broader economic indicators to refine credit risk assessments, enhancing personalized lending strategies.

Case Study 2: Bank of America: Erica, the AI-Powered Financial Assistant

As digital banking gains traction, customer expectations are also evolving. Users now demand personalized services on-demand and easily accessible through their digital devices. This shift has pushed banks to find innovative solutions to meet these new customer demands without compromising service quality.

Bank of America responded to this digital shift by launching Erica, an AI-driven virtual assistant designed to enhance the mobile banking experience. Accessible via mobile apps, Erica offers a wide range of functionalities that cater to the modern banking customer’s needs. These include handling transaction queries, updating credit reports, and providing proactive financial advice. Erica’s capabilities are powered by sophisticated algorithms that analyze user behavior and large datasets, enabling customized and efficient service that meets the high expectations of today’s bank customers.

• Personalized Customer Interaction:  Erica offers tailored banking advice, enhancing user engagement.
• Increased Accessibility:  Round-the-clock availability allows customers to receive instant assistance without waiting for human help.
• Data-Driven Insights:  Erica provides insights based on a deep analysis of user transactions and behaviors, helping customers manage their finances better.
• Operational Efficiency:  The AI assistant handles regular inquiries, leaving humans to deal with more complex issues.
• Enhanced User Experience:  AI-driven tools like Erica improve customer experience by providing quick, personalized service.
• Operational Scalability:  AI can manage increasing volumes of consumer interactions without additional human resources.
• Proactive Service:  AI enables proactive engagement, offering financial advice and alerts that can prevent issues before they arise.
• Customer Data Utilization:  Using AI to analyze customer data effectively can lead to more accurate and useful financial advice.

Erica could develop more sophisticated natural language processing capabilities to manage increasingly complex inquiries and transactions. Integration with IoT devices and other platforms may offer holistic financial management solutions, extending personalized services beyond traditional banking.

Case Study 3: HSBC: Enhancing Anti-Money Laundering Efforts

Money laundering remains a formidable challenge for financial institutions worldwide. Traditional systems designed to detect such activities often struggle under modern financial transactions’ heavy volume and complex nature. These systems can be overwhelmed, resulting in undetected fraudulent activities and significant regulatory penalties for banks.

In response, HSBC has integrated an AI-driven system to bolster its anti-money laundering (AML) efforts. This advanced system employs sophisticated machine learning algorithms to analyze many real-time transactions. By detecting unusual patterns and potential illegal activities, the system can far more effectively differentiate between normal and suspicious activities than traditional methods. This AI-enhanced approach allows HSBC to address the complexities of modern financial crime while improving compliance and reducing the risk of oversight.

• Improved Detection Rates:  The AI system has significantly increased the detection of suspicious transactions, reducing the risk of financial crimes.
• Reduced False Positives:  Enhanced accuracy in distinguishing legitimate from suspicious activities, minimizing disruptions to innocent customers.
• Compliance Efficiency:  AI assists in maintaining compliance with evolving regulatory requirements, adapting more quickly to new rules.
• Cost Reduction:  Automating surveillance reduces the need for extensive manual review teams, lowering operational costs.
• Accuracy in Surveillance:  AI technologies improve the accuracy and efficiency of financial monitoring systems.
• Adaptive Compliance:  AI can adapt quickly to new regulatory changes, aiding compliance efforts.
• Resource Optimization:  Implementing AI reduces the need for large human oversight teams, optimizing resource use.

Future developments may incorporate predictive analytics to detect and predict laundering schemes before they are fully enacted. Integration with international finance monitoring systems could enhance global compliance and tracking capabilities.

Related: Is Banking a stressful job?

Case Study 4: Citibank: Optimizing Customer Service with AI Chatbots

In the fast-paced banking world, high demand for customer service can lead to long wait times and inconsistent service experiences. Such delays and variability often detract from customer satisfaction and can negatively impact customer retention rates. As digital interactions become the norm, banks face the challenge of maintaining high service standards while managing large volumes of customer inquiries efficiently.

Citibank has implemented AI-powered chatbots across its digital platforms to address this challenge. These chatbots are arranged to address a spectrum of consumer inquiries, offer real-time support, and efficiently settle typical issues. By deploying these AI chatbots, Citibank ensures a uniform and agile consumer service experience. The chatbots are equipped to understand and process user queries quickly, offering solutions and guidance instantaneously. This technology reduces the burden on human customer service representatives and enhances overall customer satisfaction by providing timely and reliable support.

• Enhanced Customer Service:  Immediate response to inquiries improves customer satisfaction.
• 24/7 Availability:  Customers receive help anytime without needing human agent availability.
• Consistent Experience:  AI ensures that every customer interaction is handled uniformly, enhancing service reliability.
• Operational Savings:  The chatbots handle routine inquiries, decreasing the workload on human client service agents and decreasing operational costs.
• Service Accessibility:  AI tools can provide constant and consistent consumer service.
• Cost Efficiency:  Automating routine interactions can significantly reduce customer service costs.
• Customer Engagement:  Real-time interactions facilitated by AI can boost customer engagement and loyalty.

AI chatbots could evolve to handle more sophisticated negotiations and problem-solving tasks, further reducing the need for human intervention. Future versions might seamlessly integrate into omnichannel customer service strategies, providing a unified interface across all banking platforms.

Case Study 5: Santander: Predictive Analytics for Loan Default Prevention

Loan defaults pose a great financial risk to banks, affecting their profits and stability. Traditional risk assessment models often fall short in accurately predicting defaults before they occur, primarily because they may not account for dynamic changes in customers’ financial situations or broader economic trends. This limitation leads to unexpected financial losses and inefficient allocation of resources for risk management.

Santander has adopted a proactive approach to this challenge by integrating predictive analytics models powered by AI into its risk management strategy. These models use a combination of historical data analysis and real-time monitoring of account behaviors to detect early warning signs of potential loan defaults. By identifying at-risk customers before defaults occur, Santander can engage with them to offer tailored financial advice, restructuring options, or other support measures. This early intervention helps mitigate risks associated with loan defaults and improves the bank’s and its customers’ overall financial health.

• Reduced Default Rates:  Early identification and intervention have led to a decrease in loan defaults.
• Enhanced Customer Support:  At-risk customers receive tailored advice and restructuring options, improving financial outcomes.
• Operational Efficiency:  The bank optimizes resource allocation by focusing efforts where they are needed the most.
• Improved Risk Management:  Better predictive capabilities allow for more accurate risk pricing and reserve allocation.
• Proactive Risk Management:  Early detection of potential defaults enables more effective mitigation strategies.
• Customer Retention:  Proactive engagement helps maintain customer relationships and loyalty.
• Financial Health:  Improved risk assessment contributes to the bank’s overall financial health and stability.
• Resource Allocation:  AI enables more targeted and efficient use of resources in risk management activities.

Integrating wider socio-economic data could improve predictive models, offering even more precise forecasts of potential defaults. These enhancements allow customized intervention strategies tailored to individual customer profiles and economic conditions.

Case Study 6: Wells Fargo: Fraud Detection Enhancement

Real-time fraud detection in financial transactions presents a major challenge, as traditional methods often lag behind fraudsters’ sophisticated techniques. Wells Fargo faced significant challenges in effectively identifying and preventing fraudulent activities. Their traditional systems struggled to keep up without mistakenly flagging legitimate transactions as fraudulent, leading to customer dissatisfaction and operational inefficiencies.

To address this issue, Wells Fargo implemented an AI-based fraud detection system employing deep learning algorithms to scrutinize real-time transaction patterns. This advanced system is designed to compare each transaction against an extensive database of known fraudulent behaviors, enhancing its ability to make accurate assessments instantly. By doing so, the system significantly improves fraud detection accuracy, minimizing false positives and ensuring that legitimate customer transactions are not disrupted. This method boosts security and enhances the overall customer experience by minimizing delays and errors in transaction processing.

• Improved Fraud Detection: The AI system has a higher accuracy rate in identifying fraudulent transactions, reducing the incidence of fraud.
• Minimized Customer Disruption: Accurate fraud detection means fewer legitimate transactions are flagged incorrectly, ensuring smoother customer experiences.
• Enhanced Security: The system enhances overall transaction security, giving customers greater confidence in using Wells Fargo’s services.
• Cost Efficiency: Decreased fraud incidence reduces financial losses and related costs for the bank.
• Real-Time Processing: AI can process and analyze real-time transactions, offering immediate fraud alerts.
• Data Utilization: Leveraging large datasets enhances the system’s ability to identify and learn from emerging fraud patterns.
• Customer Trust: Improved security measures boost customer trust and satisfaction.

Wells Fargo plans to integrate further enhancements into the AI system, such as adaptive learning capabilities that can evolve with changing fraud tactics. This will allow for even more dynamic and robust fraud prevention mechanisms.

Case Study 7: Barclays: Streamlining Wealth Management

Barclays faced challenges in meeting the high expectations of its high net-worth clients who demand personalized, efficient wealth management services. Traditional methods were slow and often ineffective in providing the customization and rapid service these clients expected, leading to dissatisfaction and operational inefficiencies.

Barclays introduced an AI-driven platform to transform its wealth management services. This platform uses advanced analytics to deeply understand individual client preferences and performance, enabling tailored investment advice and automated portfolio adjustments. This automation enhances service speed and accuracy, improving client satisfaction and streamlining operations.

• Personalized Service: Clients receive highly customized investment advice, improving satisfaction and engagement.
• Increased Efficiency: The AI platform automates routine portfolio management tasks, freeing up advisors to focus on client relationships.
• Better Investment Performance: AI-enhanced analytics provide deeper insights into market trends, aiding better investment decisions.
• Scalability: The platform can efficiently manage many portfolios, scaling as the client base grows.
• Enhanced Customization: AI enables a high degree of personalization in delivering services. This technology tailors interactions to meet individual user needs effectively.
• Advisor Efficiency: Automating routine tasks allows wealth managers to focus more on strategic client interaction.
• Data-Driven Decisions: Utilizing AI for data analysis improves the accuracy and timeliness of investment decisions.

Barclays intends to refine its AI capabilities further, incorporating more comprehensive data sources, including global economic indicators and social trends, to enhance investment strategy recommendations.

Related: Banking Cybersecurity Case Studies

Case Study 8: Deutsche Bank: Optimizing Credit Card Fraud Detection

Credit card fraud poses a major problem for banks, resulting in annual losses amounting to millions and eroding customer trust. This persistent issue challenges financial institutions to enhance their security measures and maintain client confidence. Deutsche Bank faced the challenge of rapidly identifying and mitigating fraudulent credit card activities without affecting genuine transactions.

Deutsche Bank implemented an AI-based solution specifically designed to improve credit card fraud detection. This solution uses advanced machine learning models to monitor and analyze real-time credit card transactions. The system can quickly identify anomalies that suggest fraudulent activity by learning from historical transaction data and continuously adapting to new fraud patterns.

• Increased Detection Accuracy: The AI system significantly enhances the ability to spot fraudulent transactions, reducing financial losses.
• Enhanced Customer Trust: Customers feel more secure using their credit cards, knowing that advanced measures are in place to protect them.
• Operational Efficiency: The automated system allows for faster response times and reduces the workload on manual review teams.
• Reduced False Positives: The system effectively minimizes disruptions to innocent customers by accurately distinguishing between legitimate and fraudulent activities.
• Adaptive Learning: Machine learning models adapting to new data and evolving fraud tactics are more effective than static models.
• Customer Experience: Maintaining a balance between aggressive fraud detection and customer convenience is crucial for customer satisfaction.
• Security as a Priority: Investing in advanced security measures like AI protects the bank’s assets and builds customer loyalty.

Deutsche Bank plans to integrate more granular behavioral analytics to refine the system’s accuracy further. Additionally, collaborating with global financial networks to share fraud intelligence could enhance the system’s predictive capabilities, setting a new standard for fraud prevention in the banking industry.

Case Study 9: Credit Suisse: Enhancing Mortgage Underwriting with AI

Credit Suisse encountered significant challenges in its mortgage underwriting process, which relied heavily on manual input, making it both time-consuming and prone to creating backlogs of applications. This inefficient process delayed loan disbursals and negatively impacted customer satisfaction, as clients experienced lengthy wait times and unpredictable service levels. Streamlining this process was crucial to improving operational efficiency and maintaining customer trust and loyalty.

Credit Suisse adopted an AI-driven approach to transform its mortgage underwriting process. The AI system uses machine learning to assess applicant data such as income, credit score, employment history, market trends, and property evaluations more quickly and accurately than manual methods. This automation allows for faster decision-making and more precise risk assessment.

• Faster Processing Times: The time taken to approve mortgages has been significantly reduced, enhancing customer satisfaction.
• Increased Accuracy: AI provides more accurate assessments of applicant risk profiles, reducing the likelihood of loan defaults.
• Operational Efficiency: Automating routine tasks allows human underwriters to concentrate on handling more complex cases. This shift frees up valuable resources for more critical and detailed work.
• Scalable Underwriting Capacity: The system can handle more applications without additional staff.
• Automation in Risk Assessment: The use of AI for processing and analyzing complex applicant data streamlines risk assessment.
• Improved Customer Experience: Reducing wait times for loan approvals directly impacts customer satisfaction positively.
• Enhanced Decision Making: AI tools provide a deeper insight into potential risks and applicant credibility, aiding better decision-making.

Credit Suisse plans to further enhance the capabilities of its AI system by integrating it with real-time economic indicators and more detailed applicant lifestyle data to predict future financial stability more accurately. This advancement aims to streamline the process and tailor mortgage products more specifically to individual needs, setting a new standard in personalized banking services.

Case Study 10: Standard Chartered: Streamlining Trade Finance Operations

Standard Chartered faced complexities in managing trade finance operations, which involve extensive documentation and verification processes that are traditionally manual and error-prone. These challenges resulted in slow transaction times and higher operational costs, affecting client satisfaction and competitiveness in the global market.

Standard Chartered introduced an AI-driven platform designed to automate and enhance the efficiency of its trade finance operations. Utilizing sophisticated machine learning algorithms, the platform efficiently verifies documents, authenticates data, and streamlines the entire approval process for trade transactions. This integration of advanced technology ensures faster, more accurate handling of the complex documentation and regulatory requirements inherent in trade finance, improving overall transaction speed and reliability. By automating these key steps, the bank has significantly reduced manual errors and sped up the processing of trade finance operations.

• Reduced Processing Time: Transaction times for trade finance operations have been drastically reduced, increasing client satisfaction and transaction volumes.
• Decreased Operational Costs: Automation has minimized the need for extensive manual intervention, significantly cutting operational costs.
• Enhanced Accuracy: The AI system provides a higher level of precision in document verification and data authentication, decreasing the risk of fraud and errors.
• Improved Compliance: The system ensures better adherence to international trade regulations through accurate and automated compliance checks.
• Efficiency through Automation: Automating complex, repetitive tasks can significantly enhance efficiency and accuracy in high-stakes financial operations.
• Client Satisfaction: Quicker processing times and fewer errors directly enhance client relationships and contribute to business expansion.
• Regulatory Compliance: AI tools are vital in ensuring compliance with the continuously changing international trade laws. They help organizations adapt quickly to regulatory updates, maintaining legal integrity across global operations.

Standard Chartered is looking to expand its AI capabilities to include predictive analytics for assessing the potential risks and opportunities in trade finance. Further integration with blockchain technology could enhance security and transparency in international trade transactions, setting new industry standards for efficiency and trust.

Related: Will Banking jobs be Automated?

The integration of AI in banking, as demonstrated through these ten case studies, marks a significant leap toward a more efficient, secure, and customer-centric future in finance. Banks like JP Morgan Chase, Bank of America, HSBC, Citibank, and Santander are at the forefront, harnessing AI to enhance decision-making, streamline operations, and enrich customer interactions. These cases vividly illustrate how AI can effectively address traditional banking challenges, driving significant service delivery and risk management improvements. As the banking industry continues to evolve, the strategic deployment of AI will not only be a competitive advantage but a necessity, paving the way for innovative solutions that meet the complex demands of modern finance.

• What is Sentient AI [Pros & Cons][Deep Analysis] [2024]
• AI in Product Development [5 Case Studies] [2024]

Team DigitalDefynd

We help you find the best courses, certifications, and tutorials online. Hundreds of experts come together to handpick these recommendations based on decades of collective experience. So far we have served 4 Million+ satisfied learners and counting.

Top 50 Surprising Artificial Intelligence Facts & Statistics [2024]

Data Engineer vs Data Scientist vs AI Engineer: Key Differences [2024]

5 Banking Cybersecurity Case Studies [2024]

Will Data Science Jobs Be Automated? [2024]

How Can AI Be Used in Sustainability? [5 Case Studies][2024]

10 ways AI is being used in Cricket [2024]

E-Banking Practices and Customer Satisfaction - A Case Study in Botswana

20th Australasian Finance & Banking Conference 2007 Paper

15 Pages Posted: 4 Sep 2007

Asma Mobarek

University of Leeds

Banks' external environment, including globalization and deregulations, have made the banks highly competitive. Banks find it difficult to compete on price, and need to look at other ways to retain customers. As customers become more sophisticated, it becomes banks essential to consider the use of technology to respond to their continuously changing requirements. After conducting this research, it is clearly seen that delivery channels are lacking in meeting the demands of the customer by not making them aware of e-banking and using obsolete or not too up-to-date technology. The problem statement is solved. The hypotheses are tested and show that there is a relationship between age group, occupation type and some aspects of e-banking. The responses obtained for the acceptance of the electronic age were unanimous as the banking industry strongly feels that it must adapt to the electronics age if they are to move with time and customer demands and not be left behind. I would thus conclude that banks should drown themselves in all the intricacies regarding e-banking to determine ways that will affect the customers in Botswana and use it to their maximum benefit.

Keywords: Electronic banking, Automated Teller Machine (ATM), Tele-banking, Internet banking, customers satisfaction.

JEL Classification: E42, E50, E58

Suggested Citation: Suggested Citation

Asma Mobarek (Contact Author)

University of leeds ( email ).

Leeds, LS2 9JT United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics, related ejournals, economics of networks ejournal.

Subscribe to this free journal for more curated articles on this topic

Banking & Insurance eJournal

Subscribe to this journal for more curated articles on this topic

Economics of Innovation eJournal

Subscribe to this fee journal for more curated articles on this topic

Innovation Finance & Accounting eJournal

Recommended papers.

Dynamics of Internet Banking Adoption

By Yoonhee Tina Chang

Legacy Effects in Radical Innovation: A Study of European Internet Banking

By Erik H. Schlie , Jaideep Prabhu , ...

Adoption and Usage of Internet Banking 'A Technological Perspective'

By Sanmugam Annamalah

Aspects Regarding Internet Banking Services in Romania

By Imola Driga , Dorina Nita , ...

• Retail Banking
• Corporate Banking
• Customer Onboarding
• Digital Branch
• SME and Corporate Onboarding
• Assisted Banking
• Sales Enablement Platform
• Omnichannel Banking
• Low-Code Platform for Banking
• Microservice Architecture in Banking
• Cloud Banking
• Artificial Intelligence in Banking
• Appzillon Payment Gateway
• Open Banking Platform
• Composable Banking
• Case Studies
• In the Media
• White Papers
• Announcements
• Leadership Team
• Testimonials
• i-exceed Certifications
• Appzillon Academy

Transforming Digital Banking App Design: A UX Case Study of Retail Banking Success

• August 26, 2024

Share the Case-Study

© 2024 all rights reserved.

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Customer Services through E-Banking: A Case Study on Eastern Bank Limited (EBL)

Related Papers

reza seddighi

Electronic banking (e-banking) is a tool whose appropriate, accurate and timely utilization can lead to a successful performance in a competitive world. In other words, expanding e-banking should be considered for realizing customer orientation and customer satisfaction. However, when different types of e-banking services are provided but their quality is not acceptable, not only the customers would not be satisfied but they would be complaining about them. Considering the fact that all the organizations are seeking to attract new customers and improve their satisfaction, this issue is a critical one particularly in banks since they have a constant contact with the customers. On the other hand, the competition among banks and loan institutions as well as other financial supplies is increasing. Hence, realizing a competitive advantage seems essential for the survival of the banks. Modern banking services, which are closely related to information and communication technology, are among the most important factors in realizing competitive advantage for the banks and attracting new customers and increasing their satisfaction. In this study, using the field research method, we investigate the relationship between the usage of electronic services and satisfaction as well as attracting new customers in different branches of Eqtesade Novin Bank in Urmia. 1. INTRODUCTION With the increasing spread of information technology (IT), all the aspects of human life have fundamentally changed so that the modern world is in the course of a complete alteration. It can be said that the current industrial world have to embrace this change and being constant will cause interference in social, political and economic relationships of the individuals in a community or even in the international relations arena. Developing or lack thereof information technology in some societies has caused interference with the relations or the increase of relations among some countries. Modern communication technologies have conquered time and space dimensions and have changed the modern world into a global village so that it seems the modern human being has entered another world. During the two last decades of the twentieth century, three important innovations; namely fax, cellphone and the internet, have shown that how the expansion of communication can change the service industry and the daily life routines of people. Advancement in information and communication technologies (ICT) has both improved the supply of services and decreased the service costs. The impact of information and communication technology (ICT) in the field of trade and commerce has led to structural alterations in global trade as well as the emergence of a phenomenon called e-commerce, a process in which all the products will be exchanged through communicative or computerized connection networks or both of them. For instance, the internet, as a new channel for economic exchange, has provided the organizations with new resources for income generation and different opportunities and the volume of exchanges through internet is increasing on a daily basis and the companies avoiding this technology will soon be vanished from the face of the market arena. With the development of electronic systems, geographical distance has lost its meaning, which has led to an increasing competition among different companies and institutions including the banks. In order to reach the potential opportunities of the market and to overcome the different barriers and threats present in the complex business environment, the banks should possess competitive advantage. The electronic banking system is a context for reaching this competitive advantage. Nowadays, many banks in the global arena provide electronic services and an increasing majority of the customers tend to do their banking activities through electronic systems and without actually going to the bank branches. Using electronic banking services, the customers of the banks would be able to do their banking activities when and where they please and the banks will also enjoy lower operational costs due to the decrease in the number of staff and branches.

shakir shaik

Journal of Corporate Finance Management and Banking System

Dr. Babli Dhiman

Modern banking practices, including fractional reserve banking and the issue of banknotes, emerged in the 17th and 18th centuries. Merchants started to store their gold with the goldsmiths of London, who possessed private vaults and charged a fee for that service. The study sought to determine the impact on the perception of J&K bank customers with emerging Modern Banking. The study adopted a Descriptive research design on a sample size of 150 respondents in which 75 respondents were Men and 75 were women respondents which makes our research more sound and concrete, who were selected through Convince Sampling Technique (due to shortage of time because it was a project that requires a lot of time) from a target population of 1500 consisting both men and women, Government employees and self employed and married as well as unmarried which made our research more fruitful. It was concluded that the emerging the Bank was not able to change the perception of the J&K bank customers. The cus...

Publishing India Group

isara solutions

International Research Journal Commerce arts science

Today traditional banking services, based on lending and accepting deposits related. The emergence of knowledge-based economy and the wider evolution of communication technology, banking services have undergone profound changes during the past decades. In order to provide the quality, customer service delivery and minimum transaction cost, banks have invested to a great extent in ICT and have adopted ICT networks for delivering a wide range of banking technologies and e-banking services in recent year. In this context, this study revealed that income, gender and age wise factors are placing an important role towards the usage of o electronic banking. The research confirmed the conceptual framework stating that if skills can be upgrade there will be a greater demand for E-Banking among customers.

IOSR Journals

Scholar Journal of Applied Sciences and Research

saviour lusaya

With technological advancement, it was imperative that banks and their customers switch to the new ways of banking called e-banking. This study therefore investigated the challenges of adopting the use of e-banking by customers. Using a descriptive study, this study collected primary data from 50 respondents from the banking sector in Kasama. The respondents were selected using a simple random sampling. The results of the study found that availability of information on e-banking, education level and the cost associated with e-banking were the significant challenges to adopting and use of e-banking by customers. This was consistent with most studies reviewed and in line with most theories such as the TAM, the TRA and the decomposed theory of Reasoned Behaviour. It was concluded that making information available would increase the number of customers using e-banking. The researcher therefore recommended that Banks embark on information dissemination on the use of e-banking, benefits and cost of e-banking and that though security did not significantly affect e-banking usage, the bank should guarantee security of the accounts.

With technological advancement, it was imperative that banks and their customers switch to the new ways of banking called e-banking. This study therefore investigated the challenges of adopting the use of e-banking by customers. Using a descriptive study, this study collected primary data from 50 respondents from the banking sector in Kasama. The respondents were selected using a simple random sampling. The results of the study found that availability of information on e-banking, education level and the cost associated with e-banking were the significant challenges to adopting and use of e-banking by customers. This was consistent with most studies reviewed and in line with most theories such as the TAM, the TRA and the decomposed theory of Reasoned Behaviour. It was concluded that making information available would increase the number of customers using e-banking. The researcher therefore recommended that Banks embark on information dissemination on the use of e-banking, benefits a...

Kiran Kumar

Internet Banking becomes user friendly in today generation. Customer feels internet banking is safe and secure. Many application like online fund transfer, Payment of Income tax, mobile phone recharges, paying electricity bills, paying Dth recharge more. Customer doesn't have to go to the bank for transactions. Instead, customer can access your account any time and from any part of the world, and do so when you have the time, and not when the bank is open. For busy executives, students, and homemakers, e-banking is a virtual blessing. The research was conducted in Thiruvannamalai, Tamil Nadu. The research was based on consumer interested and perception about usage of electronic banking system and transaction.

shaista wasiuzzaman

The application of Internet technology to the banking industry has transformed the traditional practice into a new era of convenient banking at your home or office with a touch of a button! This concept is new and practical to people who have the knowledge and means to accept this convenient and safe mode of operation. The objective is to survey all the local banks in Malaysia and observe what products and services they wish to offer to the community. A simple online survey of their available websites allowed one to view all the available transactions and activities connected to electronic banking or internet banking. The 10 local banks reviewed indicated that the most popular services and products available online are Current Account, Fixed Deposit, Saving Account, Home Loans and Credit Cards. Perhaps, the survey has proved that these facilities are the bread and butter for all local banks. Interestingly, all local banks have more than 80 types of transaction items stated on their ...

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

RELATED PAPERS

ijetrm journal

Ijetrm Journal

PARAMASIVAN CHELLIAH

Ahmad Firman

Ramesh Chandavath

Impact of E-Banking on Traditional Banking Services

Anar Quliyev

Euro Asia International Journals

International Res Jour Managt Socio Human

International Journal of Trend in Scientific Research and Development

Chandigarh University

International Journal of Management and Social Sciences (IJMSS)

venugopal posina

amir farahani

Dharmesh Motwani

Journal ijmr.net.in(UGC Approved)

publications.muet.edu.pk

Arabella Bhutto

IFAC-PapersOnLine

Muhamet Ahmeti

bhabesh kumar

res publication

accounts ziraf

parul chovatiya

Journal of Security and Sustainability Issues

Anton Korauš

International Journal of Education and Management Engineering

shubham bansal

srinivas kollu

Interal Res journa Managt Sci Tech

International Journal of Management and Social Science Research Review

Designing and Implementing Global Supply Chain Management

Preeti Rana

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

Journal of Internet Banking and Commerce

ISSN: 1204-5357

A Case Study on E-Banking Security – When Security Becomes Too Sophisticated for the User to Access Their Information

Visit for more related articles at Journal of Internet Banking and Commerce

ebanking; security; case study

People use the Internet for various reasons such as shopping and online banking. One of the major concerns when purchasing online and accessing financial information is security. Information security is the protection of information and the systems used to store and transmit data (Dhillon and Backhouse, 2000). Companies go to great lengths to secure their customer’s information and gain their trust. As technology continues to advance, security measures also continue to improve and become more sophisticated. While security continues to get stronger, some studies have argued that increased security could have negative effects on the usability of the system it’s trying to protect (Braz and Robert, 2006; Yee, 2004). The question then becomes—who are you trying to secure this information from? Users already have reservations about eBanking with a minimum attitude towards its quality at best (Singh, 2011). When security measures are so sophisticated that users cannot access their own information, then security has gone too far.

The current study evaluates previous literature to establish a foundation of research in this area. A case study describing online banking security will be discussed to show the importance of information security in this sector. First, threats to information security will be identified by previously research. Then, security measures implemented to prevent these various threats from occurring will be discussed. Finally, an analysis of the identified threats and preventative measures will be presented to guide security analysts when determining effective levels of security measures.

The current study will discuss two instances of user experiences with online banking as an example for discussion. Due to a strong need for security, online banking has increased security measures to include an access code, password, and several additional security questions required for access. Users of these online banking systems setup their account to access bank statements and conduct other banking activities. Two users discussed their experience with online banking giving insight into the level of security required to gain access.

Person A discussed their experiences with online banking. When setting up their account, person A had created a username, password, was assigned an access number and answered several security questions. The next day, person A attempted to access their account but was unable to remember their access number. Person A then called the bank to request information in order to gain access into their account. Due to person A’s inability to remember all the information needed to access their account, person A wrote their login information on a piece of paper that was stored in a desk drawer. This action created a fatal security risk despite the efforts of the bank to secure their user’s information. Due to many layers of security and various information required to gain access, many other users are likely to perform the same actions as person A causing risk to their information security.

A second instance of eBanking security was discussed by a user we shall identify as person B. Person B also was unable to remember their password after entering all of their information. After being unable to access their information, person B contacted the bank’s help desk using the information provided on the website. Later that day, person B received an email from the bank stating that they are unable to access password information due to encryption and bank security policies. Instead, the bank representative informed person B that his password was reset to the default password. The bank representative sent user B his default password and bank access number via an unencrypted email. While this allowed person B to gain access to his account, the bank representative also allowed for the possibility of a hacker to intercept that email and access person B’s account.

The bank created several layers of security to prevent hackers from accessing customers information. However, these dramatic increases in security resulted in various other security threats. In the situation of person A, they were provided their access number by phone. This creates opportunities for social engineering by someone pretending to be person A or eavesdropping by someone listening in on person A’s conversation. Person A’s inability to remember all the information needed to access their account resulted in person A writing their bank information on a piece of paper that could easily be read by others. In the case of person B, the bank representative did not take proper measures to encrypt the user’s information prior to emailing it. This resulted in the ability of hackers to potentially intercept the email and gain access to person B’s account with little to no effort. Online banking systems put forth an abundant amount of effort to prevent hackers from accessing their customer information. When security becomes too complicated, they not only prevent hackers from accessing information but also customers who are performing legitimate activities. This leads to poor security habits by users negating all the security measures establishing by the organizations. The next section will describe security threats in more detail.

Information security is concerned with the protection of three characteristics of information: confidentiality, integrity, and availability through the use of technical solutions and managerial actions (Gordon and Loeb, 2002). All commercial operating systems have vulnerabilities, also known as weaknesses in the computer system (Landwehr, 2001). These vulnerabilities create opportunities for possible threats to the information housed on these systems. Security threats can be classified into several categories from internal to external, human or non-human, and intentional or non-intentional (Loch, et al, 1992; Whitman, 2003). These threats can lead to the possibilities of disclosure, modification, destruction, or denial of use of that information.

There are various threats to information security that protectors of information must be aware of and account for. Table 1 lists many threats to information security but is not exhaustive of all possible threats that may exist.

Research has shown that more than two thirds of all Americans view external threats, such as hackers and cyber criminals, as a higher risk to security than internal threats (McCrohan, 2003). Furthermore, it was reported that between 50 and 75 percent of all security related incidents originate from within the organization (D’Arcy et al, 2009). Companies often emphasize the need for security measures concerning external threat over internal threats despite previous research showing internal threats to be a higher risk (Dinnie, 1999). The first category of threats discussed is related to internal threats, which involve human and non-human threats that can be either accidental or intentional.

Internal threats can stem from three areas: the application development department, the infrastructure, and the data center (Hyle, 2006). Despite the risk of internal threats, it is highly believed that threats from employees are largely unintentional (Keller et al., 2005). Threats stemming from the application development department could result from logical errors in the applications developed by the programming team. An application that is not programmed correctly could potentially cause vulnerabilities in the security mechanisms allowing unauthorized individuals to access private information. A programmer could also intentionally access data for personal gain or malicious purposes. An organization’s infrastructure possesses significant security implications by determining access level and privileges granted to employees. Granting access to information that is unrelated to an employee’s job functions increases the probably of a user compromising the data either intentionally or unintentionally. Data centers present a large threat to the security of information because users enter, delete, and maintain important company data.

These threats include both negligence and deliberate acts by the users that encompass behaviors such as (Leach, 2003):

• A lack of security common sense

• Not applying security procedures

• Taking inappropriate risks

• Deliberate acts of negligence

• Deliberate attacks

Managers often address these issues through security awareness and training. However, being aware of security policies and procedures does not always result in employees following them. Some people respond positively with cooperation and acceptance of policies and procedures while others respond negatively with repulsiveness and resistance (Siponen and Kajava, 1998). Security incidents suffered by a company can be significantly attributed to poor or unacceptable behavior by its users (Leach, 2003). Therefore, security audits should frequently be performed to ensure employees are following proper procedures.

While successful external threats are not as common as internal threats, they do pose a significantly different challenge. External threats may include hackers, viruses, denial of service attacks and even natural disasters. While the risk of natural disasters might seem minimal, security measures must still be accounted for. In the unlikely event that a natural disaster was to occur, the organization would need to have procedures in place to recover any lost data. Backup and storage is one preventative measure for handling these types of situations. Accidental leaks of corporate information are another risk that could result in bad publicity through the news media or other outlets damaging the reputation of the company. An even more prevalent threat to information security, which typically gets the most attention, is the threats of hackers and computer viruses. These are intentional acts to compromise the security of information systems in malicious ways. The first step towards securing and organizations information is identifying the possible threats. Once a threat analysis has been completed the organization can then set its goal to developing countermeasures against these threats. Countermeasures are functions or features that reduce or eliminate vulnerabilities in the system (Oppliger, 2003).

The next section discusses these counter measures and gives more information about security practices that are taken to ensure the confidentiality, integrity, and availability of an organization’s information.

A variety of security threats were discussed in the previous section that could compromise the security of information. Many threats can be minimized or prevented through various procedures. For instance, the threat of user errors could be minimized with validation procedures upon data entry and increased training for information users. While some threats are a result of user error, other threats may occur for malicious purposes. For malicious threats to occur there has to be motivation and the capability for the threat agent to carry out the threat, which are modified by access, catalysts, inhibitors, and amplifiers (Kovacich, 2003). Motivations for malicious attacks stem from various reasons such as personal gain, political, religious, curiosity, revenge, and so on. Motivation alone is not enough for a threat to occur; the threat agent must also have the capability to perform the act.

Capabilities that could enable a threat agent to perform a malicious act might include personality, access to facilities, software, technology, and education. Inhibitors can be implemented to reduce motivations in order to deter a threat agent from performing malicious acts. Inhibitors may consist of increasing security, resulting in higher capabilities required to perform malicious acts, or more severe consequences for improper use or harm to corporate data. While inhibitors are put in place to deter malicious acts, amplifiers may exist that could increase the likelihood of threat agents to perform these acts. Amplifiers may include peer pressure, fame, easy access to information, and increased skill and educational levels which result in higher capabilities.

Organizations must take preventative measures to protect their sensitive corporate information. This includes information about the company’s strategy, financial information, customer information, or any other information that could be damaging to the company and its reputation. It was reported that information security management is currently the top technology initiative among organizations and has been since 2002 (Barlas et al, 2007). As discussed earlier, security threats can be internal or external, human or non-human, accidental or intentional (Loch, et al, 1992). Oppliger (2003) operationalized security into five aspects:

• Security Policy

• Host Security

• Network Security

• Organizational Security

• Legal Security

While each aspects of security must be addressed individually, they must collectively work together to provide security and manage vulnerabilities to corporate information. Each of these operationalizations of security will be described next.

Policies govern behaviors serving as a guide in the decision-making process when using a system (Sloman, 1994). They tell the users of these systems what activities are acceptable and what activities are not. When evaluating security policies and procedures, there are two aspects that companies typically follow: descriptive and prescriptive. The descriptive aspect involves making employees aware of the policies and procedures while the prescriptive aspect requires employees to internalize and follow the security guidelines (Siponen and Kajava, 1998). Security policies are the governing ideas that get integrated into host security, network security, and organizational security. Security policies set the rules that must be followed for host and network security. Then it’s up to the organization to train users and make them aware of the policies and procedures.

Host security includes the authentication of users, effective control and access to system resources, securely storing data, and audit trial of the information being access (Oppliger, 2003). Authentication procedures are typically divided into two stages: Identification and authentication of users (Adams and Sasse, 1999).

There different types of authentication that have been developed for authenticating users: knowledge based systems, token-based systems, and systems based on biometrics (Dhamija and Perrig, 2000). Typical user identification and authentication requires the user to enter a username and password to gain access to the system. This provides security by not allowing anybody to randomly access the system. However, several vulnerabilities exist that can be exploited using a single user name and password. Fegghi et al (1999) identified a number of threats to using reusable passwords:

• Guessing

• Social engineering

• Eavesdropping

• Capture and replay

• Penetration

• Brute force

• Point of entry

• Revealing secret

Research has shown that more than 85 percent of passwords used can be broken through the use of a dictionary or a simple exhaustive search of short passwords (Braz and Robert, 2006; Morris and Thompson, 1979). One possible solution to several of these threats includes having a password policy where users must create strong passwords and change them often. This decreases several threats previously identified such as guessing, capture and replay, and brute force. However, it often leads to poor security habits by users, such as a user not being able to remember their password and having to write it down on a piece of paper that easily be obtained by unauthorized individuals (Adams and Sasse, 1999).

One method that has been created to overcome the difficulties of remembering passwords is Hash Visualization (Perrig and Song, 1999). Hash Visualization is where a user has various pictures in their portfolio and upon logging in they must identify their portfolio pictures among a series of pictures displayed. The idea is that users can remember visual images much easier than strong passwords, avoiding the need for users to write them down. While various security techniques have been developed in recent years, the main goal is to create a secure way for users to access the system while limiting the vulnerabilities to the system.

Network security is highly integrated with other operationalizations of security such as security policies, host security, organizational security and legal security. Security policies must be put in place to govern user activity and take preventative measures for security on networks. Host security, as previously described, includes authentication of users who access the networks. Network security is integrated in the technical, organizational, and legal security measures that must be designed and implemented (Oppliger, 2007). Network security may include passwords, authentication, firewalls and proxy servers among other things.

Newhouse (2007) discusses six resolutions to creating a secured network:

• Change Passwords Quarterly

• Download Patches and Updates

• Hire a hacker

• Monthly Risk Assessments

• Communicate and Review Data Security Policy

• Keep Network Virus Free

The use of strong passwords and requiring users to regularly change their password will create a higher level of security on the network. However, there are limitations to strong passwords as previously discuss, such as users inability to remember and improper handling of security by the users. Downloading patches and updates for operating systems and networks is another action that could be taken to increase security on the network. This ensures that the latest security threats and vulnerabilities are accounted for as they are discovered. However, no system is completely hack proof. One recommendation is to hire a hacker as part of the network security team. Hackers typically use creative techniques to infiltrate a system. Therefore, hiring a proven hacker could offset other hackers as they try to exploit vulnerabilities not previous accounted for. As hackers become more sophisticated, tools such as firewalls become less sufficient on their own. Using additional tools such as intrusion detection software can help prevent access from unauthorized individuals and increase security (Green, et al, 2007). Anti-virus software and other tools should be used and kept up to date in order to prevent the spreading of viruses across the network. While these tools help limit the potential threats to information security, rarely are security issues solved with products and services alone. Incorporating these methods with the other aspects of security will significantly decrease the likelihood of falling victim to security threats (Oppliger, 2007).

However, organizations must continuously review the security policy and communicating them to the organization. This will ensure that proper procedures take place and employees are aware of what these procedures are.

The biggest threats to security are the users. Hackers often try to exploit users through tactics known as social engineering (Winkler and Dealy, 1995). It is the organization’s responsibility to educate employees about vulnerabilities and make them aware of proper procedures to protect the organization’s information (D'Arcy and Hovav, 2007; Hong et al, 2007). The primary way to accomplish this is for the organization to train users and make them aware of policies, procedures, and vulnerabilities to information and security. Security awareness training is identified as the weakest link in information security. Siponen (2001) identifies five dimensions of security awareness:

• Organizational

• General Public

• Socio-Political

• Computer Ethical

• Institutional Education

The organizational dimension consists of various groups of people within the organization that security awareness training should target. The general public dimension entails all users outside of the IT department. The social-political dimension is the security awareness training that is required by law. The Computer ethical dimension is the prevention of activities that are interpreted as abuse. The institutional dimension describes what information should be included in a security awareness program. Desman (2003) describes user awareness training as a people issue rather than a technical issue where training should be formalized. Without proper knowledge of procedures and awareness of security vulnerabilities, users will not be able to protect against potential threats.

Legal security consists of legal actions to be taken against an attacker with the possibility of prosecution (Oppliger, 2003). It is important to have consequences in place to deter potential threat agents from compromising the organization’s information. These consequences act as inhibitors decreasing the motivation of threat agents to violate security procedures. Legal security should be embedded within the security policy that is implemented within organizational. All agents associated with the organization should be made aware of security policies and consequences. Each of the five aspects of security provides different means of securing information. They must all be addressed and used together to decrease the vulnerabilities of security threats. Table 2 lists security measures (Keller et al., 2005; Landwehr, 2001; Loch, et al, 1992) that have been identified in association with the different categories of security.

As shown in table 2, the majority of technical solutions for information security are directed at external human threats. While internal threats have proved to be the biggest threat for security, external threats are the most recognized by the general population. It is important for organizations to protect their information from all viable threats. However, organizations should also take in consideration how increased security could inhibit their users from taking proper measures to secure themselves. The following section will revisit the case study of online banking and discuss the implemented security procedures followed by an analysis of information security.

Online banks have invested heavily to make efforts in securing the financial information of their customers. Many online banks throughout the United States have implemented a five-step approach for online banking access in efforts to protect against external threats. Figure 1 outlines the steps required for customers to access their bank accounts online.

In the first step, the user must enter the access ID for their account that is provided by the bank. The immediate problem associated with this access number is the length of the number and lack of relevance to the user. If the user is unable to remember this access ID easily, then they are likely to write their login information on a piece of paper as person A did in the case previously discussed. This creates poor security habits on the part of the user and leaves the opportunity for someone to steal the paper containing their login information. Users may also be vulnerable to social engineering by home service technicians or others who may try to gain access to areas where password information may be stored.

Step 2 requires the user to enter a password to gain access to their account. A password alone is vulnerable to several security issues that were discussed above. By implementing a password with other security measures, as seen in the banking example, several vulnerabilities can be decreased compared to the use of passwords alone. However, in the instance that a user forgets their password, as was the case of person B in the case presented above, there should be procedures in place to help the user recover the password or reset it to a default without allowing unauthorized individuals aware of this situation. In the case described above, the security threat could have been eliminated through proper training and the use of an encrypted email to contact the user with their account information.

Steps 3 and 4 ask the user to answer security questions that were previously answered by the user. A list of common security questions used includes:

• What is your mother’s maiden name?

• What is the name of your favorite restaurant?

• Who is your favorite actor?

• What is your favorite color?

• What is the name of your first pet?

While these questions add additional security, they are also subject to vulnerabilities from people who know the user intimately or from others engaging in social engineering. Creating questions that are too complicated might result in the user not remembering the answers and leave them unable to access their account. In this situation, the user would likely revert to writing their answers on a piece of paper along with their access ID. Once again, displaying poor security habits as demonstrated in the case of person A.

The last step, step 5, is where the user identifies a picture that they have previously marked and labeled. This uses a form of hash visualization that was described previously in this article.

This five-step approach creates a very secure environment protecting against external threat agents but can significantly decrease usability among the users of the system. In

the case describe above, both user A and user B chose to decease using online banking due to concerns about security. While the increase of security measures may protect information from threats, it may also hinder the user’s ability to access their account information causing inconvenience and decreasing the user’s perception of usefulness of the system (Ting et al, 2005). While online banks take measures to protect against external threats, they should also be aware of internal threats. If users are forced to call the help desk to request information about their account then they are requiring internal staff to access their information creating an opportunity for mismanagement. If internal threats are not addressed then the advantages gained from increased security protecting against external threats will be offset by the increased vulnerabilities of internal threats. In addition, as a user’s ability to access their information because more complicated, their ability to protect themselves will decrease.

Various threats and countermeasures for protecting against those threats were evaluated. A case study was presenting discussing two users and their difficulties with complicated eBanking security procedures. It has been shown that organizations, online banking in particular, are spending the majority of their efforts on external security without properly assessing the importance of internal security. With internal security being of a higher risk than external security, these additional security measures give users a false sense of security.

This study addresses the need for increased awareness of internal threats through security measures such as security awareness, policies, practices, and procedures. Online banks and other organizations should evaluate every aspect of security while taking into account the needs of the user. Technology should be an added convenience to the customer and not prohibit them from accessing their information. While security is important, organizations should balance the need for increased security with the desire to make systems easy to use and useful to the consumer.

Figures at a glance Adams, A. and Sasse, M. (1999). Users are not the enemy, in Association for Computing Machinery. Communications of the ACM , 42 (12), 40-46. Barlas, S., Queen, R., Radowitz, R., Shillam, P. and Williams, K. (2007). Top 10 Technology Concerns. Strategic Finance , 88 (10), 21-23. Braz, C. and Robert, J. (2006). Security and Usability: The Case of the User Authentication Methods. In Proceedings of the 18th International Conferenceof the Association Francophone d'InteractionHomme-Machine , Montréal, Québec. D'Arcy, J. and Hovav, A. (2007). Deterring Internal Information Systems Misuse. Communications of the ACM , 50 (10), 113-117. D’Arcy, J., Hovav, A. and Galleta, D. (2009). User Awareness of Security Countermeasures and Its Impact on Information Systems Misuse: A Deterrence Approach. Information Systems Research , 20 (1), 79-98. Desman, M. (2003). The Ten Commandments of Information Security Awareness Training. Security Management Practices , 11 (6), 39-44. Dhamija, R. and Perrig, A. (2000). Deja Vu: A User Study Using Images for Authentication. Proceedings of the Ninth USENIX UNIX Security Symposium , Berkeley, CA, USA. Dhillon, G. and Backhouse, J. (2000). Information System Security Management in the New Millennium. Communications of the ACM , 43 (7), 125-128. Dinnie, G. (1999). The Second Annual Global Information Security Survey. Information Management and Computer Security , 7 (3), 112-120. Feghhi, J., Feghhi, J. and Williams, P. (1999). Digital Certificates: Applied Internet Security . Massachusetts: Addison Wesley Longman Inc. Gordon, L. and Loeb, M. (2002). The Economics of Information Security Investment. ACM Transactions on Information and System Security , 5 (4), 438–457. Green, I., Raz, T. and Zviran, M. (2007). Analysis Of Active Intrusion Prevention Data For Predicting Hostile Activity In Computer Networks. Communications of the ACM , 50 (4), 63-68. Hong, K., Chi, Y., Chao, L. and Tang, J. (2007). An Empirical Study of Information Security Policy on Information Security Elevation in Taiwan. Information Management and Computer Security , 14 (2), 104-115. Hyle, R. (2006). The Oops Factor. TechDecisions , 8 (4), 20-24. Keller, S., Powell, A., Horstmann, B., Predmore, C. and Crawford, M. (2005). Information Security Threats and Practices in Small Businesses. Information Systems Management , 22 (2), 7-19. Kovacich, G. (2003). Information Systems Security Officer's Guide . 2nd ed., Burlington: Elsevier Science. Landwehr, C. (2001). Computer security. International Journal of Information Security , 1 (1), 11. Leach, J. (2003). Improving User Security Behaviour. Computers and Security , 22 (8), 685-692. Loch, K., Carr, H. and Warkentin, M. (1992). Threats to Information Systems: Today's Reality, Yesterday's Understanding. MIS Quarterly , 17 (2), 173-186. McCrohan, K. (2003). Facing the Threats to Electronic Commerce. Journal of Business and Industrial Marketing , 18 (2), 133-145. Morris, R. and Thompson, K. (1979). Password Security: A Case History. Communications of the ACM , 22 (11), 594-597. Newhouse, K. (2007). Six Security Resolutions. Credit Union Magazine , 73 (2), 52. Oppliger, R. (2003). Security Technologies for the World Wide Web . 2nd ed. Boston: Artech House. Oppliger, R. (2007). IT Security: In Search of the Holy Grail. Communications of the ACM , 50 (2), 96-98. Perrig, A. and Song, D. (1999). Hash visualization: A new technique to improve real-world security. In Proceedings of the 1999 International Workshop on Cryptographic Techniques and E-Commerce .. Singh, K. (2011). Innovated Technology in Banking Services. Journal of Internet Banking and Commerce , 16 (2), 1-15. Siponen, M. (2001). Five Dimensions of Information Security Awareness. Computers and Society , 31 (2), 24-29. Siponen, M. and Kajava, J. (1998). Ontology of Organizational IT Security Awareness - From Theoretical Foundations to Practical Framework. In Proceedings of the Seventh IEEE Workshop on Infrastructure for Collaborative Enterprises , 327-331. Sloman, M. (1994). Policy Driven Management for Distributed Systems. Journal of Network and Systems Management , 2 (4), 333-360. Ting, C., Woon, I. and Kankanhalli, A. (2005). Impact of Security Measures on the Usefulness of Knowledge Management Systems. In Proceedings of the Pacific Asia Conference on Information Systems (PACIS) , Bangkok, Thailand. Whitman, M. (2003). Enemy at the Gate: Threats to Information Security. Communications of the ACM , 46 (8), 91-95. Winkler, I. and Dealy, B. (1995). Information Security Technology?...Don’t Rely on It. A Case Study in Social Engineering. Proceedings of the Fifth USENIX UNIX Security Symposium , Salt Lake City, Utah, 1–6. Yee, K. (2004). Aligning Security and Usability. Security and Privacy , 2 (5), 48-55. Copyright © 2024 Research and Reviews , All Rights Reserved www.jffactory.net Financial Performance Evaluation: A case study of Awash International Bank S.C Ids item types, copyright holder, usage metrics. 236 COMMENTS TOP 30 Case Studies of Customer Experience in Banking and Fintech The story about Light Bank has become one of the most popular banking customer experience case studies ever made, reaching more than 50 000 views on Medium alone. It has been awarded by globally famous international design awards such as International Design Awards (IDA), London Design Awards, A'Design Award, DNA Paris Design Award, and also ... TymeBank Case Study: The Customer Impact of Inclusive Digital Banking BOX 1. Digital banking business models Fully digital retail bank: A traditional banking business model improved by the latest digital technologies to offer a better banking experience at a lower cost. Marketplace bank: A banking response to e-commerce and fintech competitors in the form of a one-stop shop for financial services run by a bank.Offers easy access to a variety of products and ... e-Banking Adoption: An Opportunity for Customer Value Co-creation Thus, this study coincides with previous studies in e-banking such as Zhang et al. (2018), Malaquias and Hwang ... In this case, the IPMA for e-banking users (see Figure 2) shows that intention to use is observed to be the most critical factor in determining e-banking usage. An increase of one point in the performance of intention to use by a ... Case Study: Will a Bank's New Technology Help or Hurt Morale? Beth Daniels, the CEO of Michigan's Vanir Bancorp, sat silent as her chief human resources officer and chief financial officer traded jabs. The trio had founded their community bank three years ... Online Banking Service Practices and Its Impact on E-Customer In this study, e-customer satisfaction significantly impacted e-customer loyalty, as in most earlier studies. The relationship between the caliber of the online banking service and e-customer loyalty was mediated by e-customer satisfaction. ... Key issues in e-banking strengths and weaknesses: The case of two Jordanian banks. European ... E-banking Overview: Concepts, Challenges and Solutions Electronic banking (e-banking) was born as a result of globalization, competition and rapid growth of IT systems. It has become the self-service delivery channel that allows banks to provide information and offer services to their customers with more convenience via several technology services like Internet and mobile phone [].This new technology was adopted by many organizations to enhance ... Electronic Banking Services in India -a Case Study of Karnataka E-Banking refers to the use of the Internet as a remote deliver y channel for banking services. Such service s include traditional ones, such as opening a deposit account or transferring. funds ... AI in Banking [10 Case Studies] [2024] Case Study 2: Bank of America: Erica, the AI-Powered Financial Assistant Challenge: As digital banking gains traction, customer expectations are also evolving. Users now demand personalized services on-demand and easily accessible through their digital devices. This shift has pushed banks to find innovative solutions to meet these new customer ... (PDF) Digital Banking A Case Study of India direction in which the digital banking bandwagon is heading. As per a study by e - Marketer, a US based. market r esearch firm, the number of smart phone users in India was 291.6 million by the ... An Alternative Approach in Service Quality: An e-Banking Case Study An Alternative Approach in Service Quality: An e-Banking Case Study. January 2008. Quality Management Journal 15 (1):41-59. DOI: 10.1080/10686967.2008.11918055. Authors: Marvin Gonzalez. College ... E-Banking Practices and Customer Satisfaction The hypotheses are tested and show that there is a relationship between age group, occupation type and some aspects of e-banking. The responses obtained for the acceptance of the electronic age were unanimous as the banking industry strongly feels that it must adapt to the electronics age if they are to move with time and customer demands and ... PDF Inclusive Digital Banking: Emerging Markets Case Studies 77a. Ownership went up from 53% to 80% between 2014 and 2016, with an increase in account ownership of 30. Financial inclusion (access) percent for women and 40 percent for the poorest households driven by the Pradhan Mantri Jan Dhan Yojana scheme that brought ~400 million Indians into the formal banking system. b. The Impact of E-Banking Service Quality on Customer Satisfaction Most of the previous studies examined Internet banking to the exclusion of all other types of E-Banking services including applications for smart phones and E-Banking robots. Many studies have investigated how E-Banking service quality is measured, but few have studied the relationship between the quality of E-Banking services and customer ... PDF Customer Services through E-Banking: A Case Study on Eastern Bank Md. Sazib Molla.Customer Services through E-Banking: A Case Study on Eastern Bank Limited (EBL). International Journal of Multidisciplinary Informative Research and Review.Vol. 1, No. 5, 2021, pp. 199- 208. Abstract: The more the civilization tends to modern technology, the more the banking system gets modernized with up-to-date technology. As ... PDF An Assesment of E-Banking Practice: The Case of Nib International Bank The general objective of this study will be the assessment of E-banking practice, the case of Nib International Bank in Lideta, Balcha Aba Nefisso and Tekelehaymanot branches. ... mobile banking. Furthermore, this study will help other researcher who will conduct future study regarding the issue. National Student Research Forum, September 1 ... Factors Affecting E-Banking Adoption and Its Impact on Customer The population of this study was active e-banking customers of the commercial banks of Ethiopia, Nekemte branch who have been using the service for more than one year. Sample of 164 customer is taken from the bank who has been using at list one of the e-banking types. ... A Case Study of Ethiopian Banks 21 Table 1: Criteria for Ensuring ... Transforming Digital Banking App Design: A UX Case Study This detailed case study walks you through our comprehensive UX process, from identifying key pain points to implementing a streamlined design that significantly improved customer satisfaction. Whether you're looking to enhance your own digital banking solutions or simply seeking inspiration, this case study provides valuable insights into ... The Role of E-Payment Tools and E-Banking in Customer Satisfaction Case Case Study: Pasargad Bank E-Payment . Company. Fatemeh Soleimani Roozbahani . PhD Candidate for IT Management, Islamic Azad University, Science and Research Branch of Tehran, Iran . PDF Practices and Challenges of E-banking Service Delivery: the Case of e-banking services are the major challenges to expand as well as to recruit new user. The study result indicates low awareness creation made by the bank affected implementation of e-banking project this result is in conformity with the work of Bultum (2014) and Muche (2010) concluded in their study that lack of awar. An Alternative Approach in Service Quality: An e-Banking Case Study An Alternative Approach in Service Quality: An e-Banking Case Study. Marvin E. González College of Charleston, ... This study uses data from the National Bank of Spain (NBS) to demonstrate the KE and QFD procedures and show how the customer's voice can be designed into its e-banking system. Keywords. banking services; customer satisfaction; Customer Services through E-Banking: A Case Study on Eastern Bank 4 Md. Sazib Molla: Customer Services through E-Banking: A Case Study on Eastern Bank Limited (EBL) Account details: The customer can choose a particular account and see the account details including unclear fund, limit, interest accrued etc. Account activity: The customer can see or print his transaction activity in a given account for a ... A Case Study on E-Banking Security â€Â" When Security Becomes Too A case study was presenting discussing two users and their difficulties with complicated eBanking security procedures. It has been shown that organizations, online banking in particular, are spending the majority of their efforts on external security without properly assessing the importance of internal security. Full article: Mobile banking apps and the informal economy: evidence In the case of Indonesia, respondents were given common local examples such as goPay, OVO, DANA and Shopeepay. 47% of respondents in Indonesia reported having an e-wallet. In both countries, respondents showed a strong preference for using cash over digital transactions, with 79% in Indonesia and 87% in Bangladesh expressing such a preference. (PDF) E-BANKING: CHALLENGES AND ISSUES electronic delivery channels. It is a process of delivering ba nking products. and services thr ough electronic channel such as telephone, internet, desktop. computers, cell phone and other ... Financial Performance Evaluation: A case study of Awash International This study was conducted under the title "Financial performance evaluation: a case study of Awash International Bank (AIB) S.C.". Its main objective was to compare and examine empirically the performance of the first private commercial bank in Ethiopia, i.e. Awash International Bank (AIB) in comparison with industry average with respect to liquidity; profitability; credit risk & solvency ... E-BANKING: A CASE OF INDIA According to Mishra and Kiranmai (2009), E-banking services fall into these types: ATM; Electronic payments through Credit cards, Debit cards, and Electronic fund transfer; phone banking, mobile ... essay homework paper phd project resume review speech study thesis