ONLINE CONSUMERS IN E-BANKING: AN EVALUATION OF THEIR TRUST PERCEPTION

PUBLISHED BY

Dr. MAHASWETHA D. MA, M.Phil, PhD

Year-2010 London, UK

 

OVERVIEW OF THE STUDY: The end of 20th century witnessed intense technological changes, among which is the arrival of e-commerce, the business of exchange of goods and services and payments through online systems. By using these systems of technologies, the banks can reach out to customers and offer them with not just general information about its services but also the opportunity of performing interactive retail banking transactions. Nevertheless, customers have not accepted B2C e-commerce and e-banking in the similar level mostly for the reason that of risk concerns and trust-related issues. Trust is being defined as a function of the degree of risk involved in the e-banking transaction, and the outcome of trust is proposed to be reduced perceived risk, leading to positive intentions towards adoption of e-banking. As stated by Gefen (2000) “Trust is not only a short-term issue but also the most significant long-term barrier for realising the potentials of B2C e-commerce”. “Trust is also a important antecedent of customers’ willingness to engage in a transaction with web merchants”. (Jarvenpaa et al., 2000). Usage of technology by retail banks and financial service providers in selling and serving customers is growing at a rapid pace. These businesses have invested in interactive information systems with the expectation that it will contribute to their overall profitability and market share. Likewise, customers are dealing with products and services that are becoming highly sophisticated from a technological point of view. However, there will be not much return from these investments, if customers fail to accept or fully utilise its capabilities. With increased use of Internet or World Wide Web, the world has become a global village. Its proliferation as a means of gaining information and knowledge gives rise to issues of sustaining trust within e-commerce. Many research studies that have been carried out on the domain of ecommerce suggest that consumers or clients have not been influenced by B2C e-commerce chiefly because of risk pertaining to trust-related issues. Sehrservicesltd 2010 At the background of the above information the present study has been attempted to examine the subject of trust mediation in e-Banking using the technique of card sorting to investigate the various aspects or the factors affecting the users’ approach such as their outlook, feelings, and thoughts towards the homepage designs of e-banking. This study extends an area of information systems research into a marketing of financial services context by looking into the element of trust perception in e-banking. This project also tries to address some of the key issues pertaining to, design and usability and also other factors related to trust in the B2C context. It also proposes a framework based on a series of underpinning relationships among these factors. Keywords: Trust, E-Banking, Card Sorting, Design &Usability

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