Consumer Perception on Online Banking : An Analytical Study

Global competition, innovative technological advancement and speedy changes in the lifestyles of the society have changed the face of banking institutions. Now-a-days, banks are seeking alternative ways to provide services as per expectations of their customer and differentiate their services with those of the competitors. Increasing number of the electronic delivery of banking services are becoming very common in the society. The use of information technology in banking sector has been termed as Internet banking, new age banking, and online banking. The technology-driven online banking services includes: Automated Teller Machines (ATM), Electronic Clearing Service (ECS), Electronic Funds Transfer (EFT), Tele-banking, Internet banking etc.

Internet banking is concerned with online inquiry or banking transactions without any reference to the branch anywhere at any time. Online banking system can have some issues such as environmental instability, user's competence, security, trust, and privacy. These have all been cited as factors contributing to consumers' apprehensiveness toward internet use. In India, almost all banking businesses are controlled by Public Sector Banks (PSBs). Public Sector Banks are still dominating the commercial banking system. Now with the beginning of wellcomputerized foreign banks, there is a stiff competition for the nationalized banks. The proposed study is an attempt to address the security issues of online banking transactions and consumer perception about the internet banking operations.