The Impact of Internet Banking in the Society

Question: Discuss about the Impact of Internet Banking in the Society. Answer: Introduction Businesses depend on rapid and efficient entre to banking data for money auditing, reviews, as well as daily financial operation processing. E-banking provides secure transactions, access ease, and 24-hour customer banking options. Currently, companies are adopting internet banking to compete in the business environment, for instance, from established entities to small start-up businesses; companies depend on internet banking. In essence, internet banking eliminates the many runs to financial institutions, and it enables entrepreneurs to make financial choices using updated information. In this paper, there are various news and academic articles that talk about the advantages and disadvantages of internet banking in the society. Equally, some articles have analyzed the reasons why customers decide to adopt internet banking as opposed to their traditional ways of banking. The target audiences of these articles are the various customers of banks and other financial institutions across the world. As such, the paper argues that there are numerous advantages of internet banking including ease of access, financial transaction options, and privacy; however, internet banking has various disadvantages such as security lapses where customers money is usually stolen. Analysis of the Role of Internet Banking in the Society BankBazaar.com. (2012).Benefits and Drawbacks of Internet Banking. Retrieved from,https://in.reuters.com/article/benefits-and-drawbacks-of-internet-banki-idINDEE87106320120802 Online banking is currently accepted as a monetary transactions norm for millions of people across the world. Customers can easily check their accounts, make online transactions between accounts. This banking mode has become popular among Indians who were used to visit banks to conduct numerous transactions (BankBazaar.com, 2012). On the other hand, online banking services have various disadvantages that put the money of customers at the risk of being stolen. According to the article, people need to understand inherent pitfalls affecting the banking system to protect their money and subsequently avoid complications. Individuals who use online banking services can make payments and transactions from wherever they are since they do not have to move to any financial facility to get banking services. Equally, technology has conveniently helped both the customer and the bank to access to various wonderful services by merely logging in (BankBazaar.com, 2012).The services encompass financia l planning abilities, forecasting tools and functional budgeting, loan calculators, as well as investment analysis and equity operating platforms which can be found on the banks website. Conversely, various challenges face internet banking including complex transactions and security issues. According to BankBazaar.com (2012), other bank transactions may require the physical appearance or face to face consultation with the banks management which cannot happen through internet banking. Moreover, security is the major problem that faces internet banking because hackers can hack into an individuals account and steal the money (BankBazaar.com, 2012). Sanger, D.E.,Perlroth, N. (2015).Bank Hackers Steal Millions via Malware. Retrieved from, https://www.nytimes.com/2015/02/15/world/bank-hackers-steal-millions-via-malware.html?_r=0 The article elaborates how hackers steal from various banks across the world using malware. For example, internal computers of a bank in Ukraine had been infiltrated by malware that permitted cyber-criminals to capture their daily activities. The malicious software turned on several cash machines, impersonated bank officials, and transferred billions of money from different banks in the Netherlands, the United States, Switzerland, Japan, and Russia to dummy accounts created in other nations (Sanger Perlroth, 2015). According to Kaspersky Lab, these kinds of attacks have occurred in over 100 banks as well as various financial institutions across the world. Bank theft through malware and clients, according to Sanger and Perlroth (2015), amounts to more than $300 million and the total can triple that. The underlying problem is that how can a scam of this magnitude proceed for years without law enforcement agencies, regulators or banks catching on. Many investors argue that the answers c ould be in the technique of the hackers. Some financial analysts assert that many cyber-thefts are carefully planned scams where attackers enter a bank, take anything they can grasp, and run (Sanger Perlroth, 2015). BBC.(2014). Nationwide Suffers Online Banking Glitch. Retrieved from, https://www.bbc.com/news/business-29708208 The article talks about the technical problem that the Nationwide, the largest building corporation in the UK, suffered in 2014. According to BBC (2014), the building society encountered a technical hitch with its online as well as mobile banking services. On the day of the incident, various customers contacted the customer services of Nationwide through social media to carp about the problem. The organization was able to fix the problem within 45 minutes after realizing that it was linked to maintenance work (BBC, 2014). Similarly, Nationwide apologized to its customers for inconveniences caused. However, Nationwides cash machines were not affected by the technical problem. In essence, several building societies and banks have been affected by the same problem on their different online banking services, and they usually solve them quickly. Chaouali, W., Ben Yahia, I., Souiden, N. (2016). The Interplay of Counter-Conformity Motivation, Social Influence, and Trust in Customers' Intention to Adopt Internet Banking Services: The Case of an Emerging Country. Journal Of Retailing And Consumer Services. The paper provides significant insights on the various roles of social influence, counter-conformity, and trust in elaborating the intentions of customers to accept internet banking services. According to Chaouali, Ben Yahia and Souiden (2016), data was gathered from different customers and examined utilizingSmartPLS 2.0 M3. Furthermore, it was evident that the main reason people approve e-banking is primarily influenced by trusting the service. After trusting the internet banking services, people then move to consumers counter-conformity inspiration and finally performance expectancy (Chaouali, Ben YahiaSouiden, 2016). However, trust and social influence in the bank have an indirect impact on the intention of customers to accept internet banking. According to the article, effort expectancy has no great influence on the decision of a customer to use internet banking. Boateng, H., Adam, D. R., Okoe, A. F., Anning-Dorson, T. (2016).Assessing the Determinants of Internet Banking Adoption Intentions: A Social Cognitive Theory Perspective.Computers In Human Behavior. Currently, many scholars have turned their attention on researching why many people have adopted internet banking services. Additionally, this paper has used technology acceptance approaches and behavioral models which do not influence the changes in peoples behavior (Boateng et al., 2016). As such, the paper aims to ascertain the factors that influence people to adopt various internet banking services. Equally, the paper analyzes customers adoption intentions by looking at how theories such as cognitive theory influence the behavior of consumers. According to Boateng et al (2016), social features of websites, trust, lifestyle compatibility, and online client services exhibit essential impact on the intentions of customers to embrace e-banking. Nevertheless, ease of internet use has no important relationship with the goals of clients to embrace internet banking. Mbrokoh, A. S. (2016). Exploring the Factors that Influence the Adoption of Internet Banking in Ghana.Journal Of Internet Banking Commerce, 21(2), 1-20. The study aims to examine the major issues that influence customers to adopt internet banking in Ghana by using several theoretical approaches. Mbrokoh (2016) asserts that there is always support for the impact of effort anticipation, performance hope, apparent credibility, social power on behavioral intention to use the internet. According to the article, there is a positive relationship between Internet banking usage behavior and behavioral aims. Therefore, the paper shows that there are challenges, opposition and barriers that people in Sub-Saharan Africa experience to deploy, diffuse, and adopt internet banking (Mbrokoh, 2016). Additionally, the paper has established various factors that influence clients to change their behaviors from customary encounter to the use of internet banking. Some of the factors include attitude towards acceptance, and privacy and security. Comparison of the Articles The news and academic articles talk about the issue of internet banking, the reasons why customers are adapting e-banking, as well as the challenges and advantages of internet banking. Similarly, both the articles target every customer of any Bank or financial institution across the world. However, I chose the article written by BankBazaar.com (2012) as number one article because it analyzes both the advantages and disadvantages of using internet banking. According to BankBazaar.com (2012), it is essential for individuals to understand the inherent pitfalls affecting the banking system to protect their money and subsequently avoid complications. BankBazaar.com (2012) further asserts that online banking makes payments and transactions an easy venture for customers since they can do it at any location. In their article, Sanger and Perlroth (2015) examine various incidences of fraud that have been conducted by hackers through the use of malware in different banks across the globe. The a rticle is rated second because it enlightens banks and other financial institutions officials about the tricks and techniques that hackers use to illegally access data in various financial institutions. Subsequently, the rest of the articles have been listed based on the content they have provided regarding internet banking and society. Conclusively, internet banking has led to the creation of new customers and retention past customers, particularly the more multifaceted customers. It is evident that through internet banking customers are satisfied because they get 24 hours bank services. Moreover, internet banking has transformed the banking industry in the sense that customers get lower transactional and operational costs compared to the services that are offered over the counter.On the other hand, the use of internet banking has eliminated the bank officials that used to facilitate various transactions by placing more responsibilities on clients to transact on their own. Moreover, internet banking has made clients get lesser service offered as customer care service, hence, affecting issues such as creating customer confidence. Equally, there have been security challenges associated with internet banking, for example, fraud by hackers. In essence, internet banking has both advantages and disadvantages that custome rs need to know since internet banking success depends on customers knowledge about utilizing the service. References BankBazaar.com. (2012).Benefits and Drawbacks of Internet Banking. Retrieved from,https://in.reuters.com/article/benefits-and-drawbacks-of-internet-banki-idINDEE87106320120802 BBC. (2014). Nationwide Suffers Online Banking Glitch. Retrieved from, https://www.bbc.com/news/business-29708208 Boateng, H., Adam, D. R., Okoe, A. F., Anning-Dorson, T. (2016).Assessing the Determinants of Internet Banking Adoption Intentions: A Social Cognitive Theory Perspective.Computers In Human Behavior. Chaouali, W., Ben Yahia, I., Souiden, N. (2016). The Interplay of Counter-Conformity Motivation, Social Influence, and Trust in Customers' Intention to Adopt Internet Banking Services: The Case of an Emerging Country. Journal Of Retailing And Consumer Services. Mbrokoh, A. S. (2016). Exploring the Factors that Influence the Adoption of Internet Banking in Ghana.Journal Of Internet Banking Commerce, 21(2), 1-20. Sanger, D.E., Perlroth, N. (2015).Bank Hackers Steal Millions via Malware. Retrieved from, https://www.nytimes.com/2015/02/15/world/bank-hackers-steal-millions-via-malware.html?_r=0