An investigation on consumer perception and trust in e-banking Literature review

An investigation on consumer perception and trust in e-banking transactions through mobile phone.The case of Lloyds TSB - Literature review Example E-banking is also known as internet banking which is an extension of personal computer banking (Stair & et. al., 2009). E-banking utilises internet as a medium for conducting several banking activities such as money transfer, bill payment, balance observation and purchase of financial products among others. E-banking is the outcome of explored opportunity to utilise internet applications in several fields of banking (Bak & Stair, 2011). According to Fonchamnyo (2012), e-banking has experienced rapid growth and changed the traditional banking practices of customers. This growth can lead to massive shift in banking practices leading to advanced business performance. In fact, e-banking has become a major trend for banks to sell their products and services and is perceived to be an inevitable component or ally for banks to remain profitable and successful. However, the acceptance of e-banking is not even particularly between developed and developing nations. It is believed that the diffe rent perceptions of customers about the use of e-banking result in trust and adoption of e-banking facilities (Scribd, 2013). Mobile banking is a subsection of e-banking which has gained growing popularity amongst numerous segments of society. Mobile banking denotes the provision of banking services with the aid of telecommunication devices (Sarlak & Hastiani, 2010). With the use of mobile technology, banks can provide several services to the customers such as money transfer whilst travelling, obtaining online updates or even conducting stock trading and financial transaction activities while being caught in traffic. Therefore, mobile banking provides convenient, simple and timeless banking experience (Canadian Imperial Bank of Commerce, 2013). The mobile e-banking phenomenon which can expressively influence banks’ operational efficiency and services, is gaining status in developed nations. However, irrespective of its several advantages, the use of mobile phone in banking ac tivities is still in the beginning phase, particularly in developing nations (Burri & Cottier, 2012). Following the technological developments, mobile phones are permeating in every aspect of life. The quick propagation of mobile phone not only has transformed the manner in which people live, but also has created a new channel for service delivery. The elevated penetration rate of mobile phone has resulted in increased use of mobile devices for the purpose of banking as it adds more value to the customers (Kumar, 2009; IBM Corporation, 2011). The prospect of mobile e-banking relies on customers’ perception. Customers are only willing to conduct mobile e-banking transaction, if they acquire value from it. From the perspective of customers, this value can be defined with respect to customer perception of using a new technology (Yang & Ma, 2012). 2.2 Consumer Perception Theory 2.2.1 Technology Acceptance Model (TAM) On the basis of Technology Acceptance Model (TAM) model, the ov erall feeling or attitude towards the utilisation of technology oriented system is a key determinant of adoption of any

Theory and Application Research Paper Example | Topics and Well Written Essays - 2500 words

Theory and Application - Research Paper Example Center of discussion in this paper is the theory as a systematic representation of a genuine problem, articulated as far as possible in mathematical terms in the natural sciences or logical (or strictly linguistic terms) in the life and social sciences. Theory basically refers to the research that leads to some conclusion regarding the hypotheses or that results in derivation of a hypothesis through experimentation. â€Å"Practice is viewed as action that treats real things: real acts, real teachers, real children, things richer and different from their theoretical representations†. Application or practice as the word suggests is application of the knowledge i.e. it is the practical aspect of the theoretical background. Since it the application that is usually important considering it is the application or practice that basically judges the theory hence it is important to integrate theory and practice. However, there is a significant gap between theory and practice. Especially , when it comes to the recent research being conducted, practitioners usually remain unaware of them, that has resulted in a widening gap between theory and practice. Hence it becomes necessary to understand the differences that exist between theory and it application in order to apply theories better to practice. Mullen et al. while discussing the theory-practice relationship explain that even though most consider theory and practice to be part of same world but even so they have different existence and we need to learn of ways to integrate the two. In their paper, they suggest three basic methods of integrating the two. The three methods mentioned are: metaphor, reflection and inquiry, and binocular vision. Regarding metaphor they state that â€Å"Metaphor can be used to capture a flexible, creative, and analytic form of integration†¦sees metaphor as the use of a word, phrase, or image in place of another to imply a likeness or comparison†(Mullen et al. 2005). They ref er to the system where we can analyze the situation, understand the problem, interpret it in various terms so as to be able to think of different solutions to the problem and apply the solution that best suits the problem. Reflection refers to the reflective conversation with the subjects involved. Mullen et al. (2005) refers to reflective practitioner as one who communicates with the subjects involved and thus gathers information that he utilizes in practice. However, it has a limited use since not all areas can utilize the method mentioned. Besides, communication skills are limited to individual abilities and hence do not provide a sure method for bridging the gap. Binocular vision refers to the concept where theory and practice are considered as the two lenses of the same binocular. Thus, they are considered as a part of the whole and are supposed to be naturally present in any given situation (Mullen et al. 2005). Exploring the mentioned methods Mullen et al. suggest that theory and practice are not to be viewed as part of different phenomenon instead they always exist in a situation as a whole. Further, it is difficult to state whether theory follows practice or practice follows theory instead they co-exist like the lenses of a binocular. Hammond, Rosso, Orcutt, and Martin (2011) in their attempt to develop better educational practices