IMPACT OF USER IT AND INTERNET SKILLS ON ONLINE BANKING, INPUT TO INNOVATIVE BANKING STRATEGIES

Year 2011, Volume: 3 Issue: 1, 477 - 486, 01.06.2011

Syed Shan E Raza

Abstract

Online-banking is now widely being introduced by banks. This Strategic move is
supported by aim to reduce branch/resources costs and offer more convenience to
the consumers. Alongside users are becoming more frequent in IT /internet dayby-day.
This provides good match to the success of Online-banking.
Employee’s skills and user’s skills were also considered by scholars to see the
effect on adoption of online banking. Author has found that these user skills were
not standardized. Author tried to fill this gap by using Eurostat classification of
skills in terms of user’s Computer and internet skills [Appendix. 1]. The objective
of this study is threefold, thus understanding the user perception about fear of
online theft/misuse, Complexity and effect on individual’s efficiency by using
online banking.
A questionnaire has been sent to users and results thus verified 02 of 03
hypothesis. Despite higher level of skills and experience, users have concerns
with the security and complexity of the method. The results are analyzed in a
simple graphical fashion in order to provide quick understanding to the reader.
Concluding, despite certain limitations, this study gives value to the literature and
opens new research horizons for online banking strategies. It provides a common
criterion for understanding user skills and their perceptions about the
application/usability of online banking using EU classification. Consequently
counter actions can be taken by the banks to satisfy users concerns and improve
the structure of online banking.

Keywords

business, ICT, online-banking, strategy, behavior, innovation

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