Assignment Sample on MBA_7_CCR Curiosity, Creativity and Research

. Research context

Customer satisfaction is the way to measure the products and services which the company provides whether surpass customer satisfaction or not. It becomes essential for every sector to provide the best of products and services to the customers. Considering the banking sector, the usage of electronic banking has started with ATMs and achieved popularity. Currently, it is widely used in developed and developing countries. The introduction of electronic banking made the life of people easier and faster. The utilization of electronic banking by the companies started in the mid 90 century with ATMs and transformed into online transactions creating a channel between the customers and banks. The chief aim of electronic banking services is to provide its customer with faster service at a low cost. Passing the 20th century, the banking sector has found new methods of banking by attaining knowledge of information technology progress (Ce.sharif.ac.ir, 2021).

In the UK, electronic banking services are available and serve the customer at large. Currently, this service is provided by 12 electronic banking service providers. For instance, The Egg is a great example of an electronic banking service in the UK. It has around 150000 customers who used to visit at its site and provide benefits of fast service. It has been found that electronic banking has a good impact on the customer thereby encountering an enhancement for cross border transactions have achieved (London Egg Bank, 2021). Many banks have recognized to continue in launching online services to meet the daily requirements of the customers. It is gained that the frequency to access the consumer’s account is high. However, due to the presence of electronic banking, fear for the security of cash transfer is noticeable in the minority group.  A recent study by the “Forrester Research” has revealed the existence of fear for online banking. The minority of people have given up online banking services because of security fears.

The UK internet users fears such as keystroke logging and phishing. This made the customer delay engaging in online service. It is gained that many of the UK electronic banking users have ditched the online services because of security fears. This is for the reason due to increase banking security issues. This may be a concern for the people the way bank is operating today (Gleeson et al. 2020). They need to be very careful about delivering service. It has happened that the unknown source easily entered into customer accounts and scams them. Thus, the negative impact of electronic banking services can be observed. It is gained that some Net Bank consumers are deceived by providing its net bank client password and numbers because of the spam email provide to them. A potential problem must be solved by the banking sector to help its customers (Bravo et al. 2019). The introduction of online baking is to provide customer satisfaction and proved to attain higher profitability in the banking sector. It is gained that very few studies have been conducted on the banking sector to provide a succinct understanding of the way it has achieved popularity.

1.1 Problem statement

It is gained that electronic banking has several benefits and 76% of the UK people are using this facility. However, these people are facing issues of services that electronic banking provides such as Shifting in banking habits, security issues in terms of fraudulent activity and cyber-attacks, technical issues in terms of experiencing risk in technology, lack of trust, and personal relationships and coping up with the changing electronic landscape (Bravo et al. 2019). The intensity of these issues creates fear in using this service deliberately. Understanding this can bring a possible solution.

1.2 Research aim and Objectives

The study will aim to evaluate to what extent electronic banking has affected customers satisfaction in the UK.

1.3 Research question

• What is the impact of electronic banking on customer satisfaction as compared to the traditional form in the UK?
• What is the level of acceptance of electronic banking to the customers?
• How does electronic banking help their customers in controlling accounts movement in the UK?
• What are the strategies adopted by the British electronic banking industry to attract the target markets?

1.4 Research objectives

• To examine the importance of electronic banking on customer satisfaction
• To ascertain customer responses in relation to employees relationship on controlling its accounts after using electronic banking
• To evaluate major opportunities and challenges of electronic banking from customers’ perspective
• To recommend the British banking industry regarding taking effective strategies for engaging more customers

3. Literature review

3.1 Introduction

This portion of the paper will be highlighting the concept of electronic banking, how it has affected customer satisfaction in the United Kingdom. It would be starting with a brief introduction of electronic banking, what are the benefits of electronic banking which have changed the banking sector flexibility satisfying numerous numbers of customers in recent times in the UK. Little information is added about the history of internet banking in the UK. In addition, it would also be highlighting how the banking sector in the UK has maintained the customers’ concerns about security, privacy, and credibility. All of the above topics would be described briefly.

3.2 Concept of Internet Banking

Electronic banking refers to the use of technology such as computers and telecommunications to perform the tasks related to transactions instead of human interactions or communications. Electronic Banking is an inclusive project which includes diverse groups of tasks such as electronic funds transferring for retail buying, automatic payroll deposits, bill payments and automatic teller machines, and many others (Adiandari et al. 2020). There are many banks that have developed their banking system where they allow a person to perform transactions directly or through the use of banking websites. The promotion of internet banking immensely reduced the physical process of banking activities using papers and pens. Certain activities such as sending of coinages or notes from one place to another and one person to another have also become outdated now. There are several advantages such as paying bills online, transferring money, depositing cheques online, lowering overhead fees. On the contrary, there are several disadvantages such as technology disruptions, lack of personal relationship, privacy concerns, limited services and others (Alalwan et al. 2018).

3.3 History of Electronic Banking in the UK

Internet banking or electronic banking has developed just a few years back (Kamal et al. 2020). It has not yet become mature and it has just three-decades-long histories of its own. The word ‘online’ had become very popular in the 1980s, which was used at that time for banking services through a computer or terminal. Online banking or Electronic Banking started in the United Kingdom in 1983 and the Nottingham Building Society was the first one to provide online banking services (Kavithav and Gopinath, 2021). Prestel system was applied to deliver the banking services to the potential customers. That system had proved to be the best system for performing online transactions. The online banking system was developed or updated by the development of many new generations of computers, which had made electronic services more credible. The importance of online experience between the age groups can be understood for the use of mobile banking apps and the facilities with automated chatbots and others.

On the other hand, digital banking services are considered as grown since pandemic has considered. The growth is significant to understand the facilities in accelerating the adoption of digital technology and quality with ease (Alalwan et al. 2018). The use of digital experiences can be dealt with choosing the large majority for using the significant web chat facilities and others that have evolved in the last few years. It is regarding digital experiences that the UK banking sectors are experiencing. In addition, the banks are constantly trying to survive in competitive environment. It is to focus on how the digital experience can get better scenario and overcome the challenges in the future days. Better ROI is helpful in defining the insights and optimization in avoiding the trap for making decisions for attracting the customers.

3. 4 TRS theory

Much research has been done on online banking or electronic banking where many different theories and models have been provided in the past by the researchers. In this regard, the TRS theory has a wider contribution in the banking sector, especially for electronic banking. This theory determines the behavioral patterns of different consumers. It is believed by the theory that the customer intention is antecedent (Yang et al. 2018) Most of the theories believe that the social relevance under violent control is responsible for the antecedent behavior.

There are two different factors, which determine the TRS theory. One of the factors is the personal factor, which is concerned with the attitude, and the behaviors caused due to it. The other can be considered the social factor, which refers to subjective norms.  One person’s performance is determined by his or her attitude and contrary to the beliefs is responsible for the subjective norms. Both of these factors such as subjective norms and behavioral attitudes are responsible for creating the individual’s behavioral intentions (Rawwash et al. 2020).

3.4 Internet Banking and Customer Perceptions

Internet banking or electronic banking in the United States has been becoming very popular and acceptable by all due to its various functions, which are very convincing and flexible. The banking in the United States is compelled to adopt technological support to develop their banking system also for reducing the unnecessary costs of the banking companies. This research would be showing the customer perceptions about electronic banking in the United Kingdom. Total of 100 UK-based banking customers were selected to know their ideas about internet banking (Bravo et al. 2019). The research result has brought a positive outcome about the banking sector, especially electronic banking.

The customers believe that electronic banking to be one of the best systems and easy systems to use. It makes it easier for the customer to perform their online transactions while transferring amounts from one person to another or one place to different instantly without any problem. It also helps in purchasing different products online where they can pay easily for that transaction and various activities are done by electronic banking. As argued by Riaz et al. (2017), internet banking needs to be improved for competitive advantages. The advent of ATM can represent the witnesses for redefining the virtual space that the individual can identify through ICT channel. It can enable the customers redefining the services online and offline. The speed of internet banking is related to customer satisfaction and acceptance of internet banking. Trust and perceived usefulness are the factors that affect the online transactions for satisfying the customers. British banking sector identified the reliability and accessibility of service quality. It is significant to understand the customer satisfaction and customer relationship in signifying the online banking (Bravo et al. 2019). It can indicate the terms of customer satisfaction and banking platforms for declining several criminal cases regarding credit and debit cards. This includes drawbacks in the system.

3.5 Technology Acceptance Model

There are many reasons why banking customers hesitate to use the information system (Gainsbury et al. 2020). Several models have been introduced by the researcher and among them, Technology Acceptance Model is one the best trustworthy and reliable models to be used now. This model simplifies the different factors and divides them into many categories to comprehend the reasons why the customers refuse to use the technological application. The two trustworthy and popular models, which have been accepted by most of the banking sectors are Technology Acceptance Model and Task Technology Fit. these two models are very different from each other there, they overlap with few ideas. According to the Task Technology Fit if this model gets technological support then it would be performing better in the banking activities (Vuković et al. 2019). With the utilization of Task Technology, Fit would be providing easy and satisfying services to the customers.

The major objective of the Technology Acceptance Model is to comprehend or identify the different factors that create problems in the e-banking services, and what are the reasons, which could not convince the customers to promote the application of Electronic banking. There are two different factors for the customers’ intention, which do not allow them to consider the online banking service. One of the two reasons which convince the customers to desire the use of electronic banking is the flexibility of its uses or the easy use of banking (Salloum et al. 2019). Technology Acceptance Model also assumes that the customer’s perceived usefulness is affected through the perceived ease because it is very easiest to utilize the technology.

According to Rawwash et al. (2020), electronic banking is helping the people at large. It provides easy access from anywhere such as mobile and computer and pays bills instantly and automatically. However, there exist some fears among banking users. It is evident that scams are taking place in the banking sector, money is being stealthy by hackers. Email is sent to the customer’s and their password and account number are asked intellectually and deceitful and fraudulent activity has occurred. This is the reason customers are still valuing direct contact with the individual in its bank branch. The majority of bank consumers think electronic banking is a source of transaction theft and they do not prefer getting the “online banking service”. In the UK, as per the survey report, it has been found that ⅓ of the customers vote for electronic banking as an essential service and 22% of the people use this service only in the current era. On the other hand, reported by many banks that consumers do not even know their bank is providing online service. However, as per the Deloitte survey, it has been found that many of the educated customers used to have the facility of web service.  Thus, necessary to increase the awareness and security for banks in this era is important to ensure the quality of service.

3. How the research study will be conducted?

For this research, a primary data collection method will be applied. In this study, the survey will be made in the two banks of the UK. A survey from these two banks will be initiated at ADIB (UK) Ltd and Bank Leumi (UK) plc. 100 customers from two of the banks will be surveyed in this research. 12 questions based on the demographics and electronic banking challenges will be asked to the respondents. An email will be sent to the respondents to participate in the survey process and answer the question based on the facts and provide great assistance to the research study.

Survey analysis will be made for this study. The respondent information will be decoded and will be analysed on SPSS software. 12 questions have been chosen to be analysed by this software. Descriptive and correlation analysis will be made for reaching the result of the research aims and objectives. The full evaluation of the core reason for the challenges and opportunities will be made in this study to reach the desired outcome.

References

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Alalwan, A.A., Dwivedi, Y.K., Rana, N.P. and Algharabat, R., 2018. Examining factors influencing Jordanian customers’ intentions and adoption of internet banking: Extending UTAUT2 with risk. Journal of Retailing and Consumer Services, 40, pp.125-138.

Bravo, R., Martínez, E. and Pina, J.M., 2019. Effects of customer perceptions in multichannel retail banking. International Journal of Bank Marketing.

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Gleeson, S., Dawson, C., Ossio, D.B., Douglas, L., Nixon, L. and Sah, M., 2020. Central Bank Digital Currencies–How Might They Work in Practice?. Clifford Chance..

Kamal, S.A., Shafiq, M. and Kakria, P., 2020. Investigating acceptance of telemedicine services through an extended technology acceptance model (TAM). Technology in Society, 60, p.101212.

Kavitha, J. and Gopinath, R., 2021. A Study on Perception of Internet Banking users Service Quality-A Structural Equation Modeling Perspective.

London Egg Bank. 2021. The UK’s Leading Egg Bank – London Egg Bank. [online] Available at: <https://londoneggbank.com/> [Accessed 16 December 2021].

Rawwash, H., Masad, F., Enaizan, O., Eneizan, B., Adaileh, M., Saleh, A. and Almestarihi, R., 2020. Factors affecting Jordanian electronic banking services. Management Science Letters, 10(4), pp.915-922.

Riaz, U., Burton, B. and Monk, L., 2017, December. Perceptions on the accessibility of Islamic banking in the UK—Challenges, opportunities and divergence in opinion. In Accounting Forum (Vol. 41, No. 4, pp. 353-374). No longer published by Elsevier.

Salloum, S.A., Alhamad, A.Q.M., Al-Emran, M., Monem, A.A. and Shaalan, K., 2019. Exploring students’ acceptance of e-learning through the development of a comprehensive technology acceptance model. IEEE Access, 7, pp.128445-128462.

Vuković, M., Pivac, S. and Kundid, D., 2019. Technology acceptance model for the internet banking acceptance in split. Business Systems Research: International journal of the Society for Advancing Innovation and Research in Economy, 10(2), pp.124-140.

Yang, S., Li, Z., Ma, Y. and Chen, X., 2018. Does electronic banking really improve bank performance? Evidence in China. International Journal of Economics and Finance, 10(2), pp.82-94.