Background/Rationale

In the past years, there has been significant growth in the United Kingdom internet banking with the trend being attributed to the flexibility and convenience that comes with the new banking approach.  Under the current era, the need to counter throat cut competition in the banking sector has prompted many institutions to introduce innovative features such as the integration of banking with internet platforms. On the other hand, customers are inclining into cost-saving, convenient and time-saving operations/ services. In the past, customers had to queue in banking halls to make withdraws, deposits or inquiries. However, this is no longer the case as United kingdoms are swiftly adopting virtual banking.

The following paper seeks to analyze the perceptions of UK customers towards internet banking. Past descriptive analysis indicates that many customers via online banking as being both efficient and secure. However, the older population tends to have divergent views as they remain inclined to traditional banking approaches. They base their argument on the security hitches that are common on online platforms. Security, convenience, time-saving and privacy appears as being the primary variables that drive the perceptions on internet banking.

Research Questions

1. What are the factors that shape the perception of UK customers towards embracing or rejecting internet banking systems?
2. How was online banking developed/ introduced in the United Kingdom
3. Is there a gap between the actual performance and the perceived value by the customers?

The questions acknowledge that while many people support online banking, there is a fraction mainly comprised of older persons that are opposed to internet banking. It is thus critical to evaluate the factors that influence the standpoints held by each group.

Research Aim

The primary aim of the research is to study the perceptions of the United Kingdom customers towards internet banking services.

Research Objectives

• To study the development of Interment banking in the United Kingdom
• Evaluate the attitudes held by different groups and ways that they shape individual behaviors
• Determine the impacts of internet banking on the customers and the ease of accessing banking services
• To study the strengths and limitations of online banking in the United Kingdom
• Offer a highlight of past studies that have been conducted, their contributions, and areas that need to be covered.

Summary

The history of internet banking in the United Kingdom can be traced to 1983 in the operations of Nottingham Building Society(NBS) which was the pioneer financial institution in the use of online services. Through the Prestel system, the NBS customers could view their bank statements, pay bills as well as making huge money transfers via online platforms. The concept was based on telephone services and had the benefit of connecting homes with the banking institution. In 2005, there was the creation of regulations by the Federal Financial Institution Examination Council with the objective of controlling all online transactions.

The theory of reasoned action is one of the models that have in the past been used in determining the factors that propel the adoption of internet banking. The theory notes that behavioral intentions are influenced by both attitudes and perceptions. Normative thus believe that these perceptions are likely to lead towards the approval or disapproval of internet banking.  While all other factors are held as being constant, it is worth noting that the Technology Acceptance Model infers that the rejection or acceptance of technology is determined by the perceived ease, security and usefulness.

Perceived usefulness is the ability to make the banking process easier as compared to the previous settings. Supporters of internet banking are of the ideal that they can keep track of their bank transactions at any time of the day. Contrary to the limited time offered by physical banks, internet banking gives unlimited access both during the day and night. In an ear where there is embracing of a 24-hour economic model, there is great usefulness in the use of online banking.

Conclusion

The study acknowledges that there are varying perceptions among United Kingdom customers. Through the application of different theories and models, there is a detailed evaluation of the factors that shape the perception of the customers. The differences between the group that supports and those that oppose are based on security. While there is a general acknowledgment that internet banking comes with greater flexibility and ease, there are issues with security. While many measures ensure that there are no security breaches, the older generations remain reserved on the trend.

They are of the view that internet breaches can lead to the loss of their money. On the other hand, they lack a clear understanding of how online banking works. Nonetheless, there is the view that many people embrace online banking as it offers more usefulness, flexibility, privacy, and security.  It allows for the payment of services via online platforms as well as accessing banking information at any time of the day. Moreover, it is also not restricted to geographical confinements.

Reference List

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