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