Factors Influencing Internet Banking

Critical review: Factors influencing the adoption of internet banking: a case study of commercial banks in Mauritius

Introduction

The growing popularity of internet banks stems from the fact that their services are considered as more attractive than those offered by traditional banks. The internet is the fastest growing banking channel today, both in the fields of corporate and retail banking in developed countries such as USA and UK (Alam et al., 2007). Similarly, internet banking is predicted to transform and revolutionize the traditional industry (Mols, 1999; Daniel, 1999). Banking activities are easily digitized and automated as argued by various researchers (Elliot and Loebbecke, 2000; Daniel, 1998; Cervantes, 1997; MSDW, 2000) and the

Literature review

Understanding the digital journey of banking: internet banking

The competitive pressures and the changing requirements of consumers have urged upon the banking industry to develop new and innovative technologies and tools. Internet banking has revolutionized the banking industry worldwide (Malhotra and Singh, 2010). There are numerous papers that have studied internet banking internationally and the studies investigated the status of internet banking in developed countries like the USA, UK, Australia, New Zealand, Malaysia, United Arab Emirates and developing countries like Bulgaria, Saudi Arabia, Jordan, Tunisia, Greece and Zimbabwe (Vijayan and Shanmugam, 2003; Awamleh et al., 2003; Bojinov, 2003; Yeap and Cheah, 2005; Awamleh and Fernandes, 2005a; Ayadi, 2006; Hamid et al., 2007;

Hence, it can be further implied that there is a powerful urge for banking institutions to re-orient their existing marketing strategies towards internet banking services in order to empower customers on the various benefits of internet banking. Far from having reached its pinnacle, internet banking has still a long road to travel in both research and practice in both developed and developing countries. The present study has highlighted the importance of internet banking services among banking customers in Mauritius. There is equally strong empirical evidence in the study concerning the adoption of internet banking services for a developing country like Mauritius. It is highly recommended that banking professionals emphasize on trust and security aspects when communicating the benefits of internet banking services to customers. Banking customers should be provided with sophisticated encryption illegal intrusion detection and firewall programs to further reassure them on security and trust aspects. The research results will also form useful and practical tools for the policy makers who are responsible for designing and marketing internet banking services in