Title: Online banking
Name
Institution
Online banking has been defined as the practice of paying bills and bank transactions through the Internet. It allows the user to make deposits, pay bills, do withdrawals transaction in remarkably time making it to be more convenient. Making banking transaction or paying bills via online banking has a positive influence on customer satisfaction as discussed in this paper.
According to Churchill and Suprenant (1982), online banking access information anywhere, it makes the financial life much easier leading to customer satisfaction. On the contrary, some researches have been investigated how it enhances dissatisfaction on consumers (Liao & Cheung 2008). Liao and Cheung have disagree on the fact that online banking leads to customer satisfaction, given that it only deals with information system through marketing its benefits, doing transaction at a fee. From their argument, banking organizations are the ones who benefit more from the transaction fee they charge. For instance, in paying bills via online banking, a certain fee has been charged leading to bank investing on these fees.
Other studies done by Aladwani, Palvia and Palmer (2002), proposed its key dimension of web been another factor that led to client contentment. Borne in mind, online banking has been done via web, many can access easily through computers and phones. This is easier compared to using a lot of time queuing in lines in order to do transaction that may cost the client a lot of time. Liao and Cheung (2008) proposed a tested that measured how its ease of use enhances consumer satisfaction. Those who partake agreed its worth in checking the balances by just logging on their account and the results are swift. In their research, they concluded its use of ease enhancing customer satisfaction. Additionally, content in web site plays key role in giving information concerning banking transactions.
Transaction speed is another factor that led to contentment. The speed transaction in online banking has received attention within the context of information systems. This is because of its focus on the efficiency of technology resources. According to Aladwani and Palvia (2002), technology has advanced to the point there have been self-service technologies such as Automated Teller Machines (ATMs) that has enhanced speed of service delivery that has positively influenced customer contentment because of the fact that the modern society highly prefer speed of service delivery.
The use of ATM in the modern society has offered flexible along scalable solution of quality services within networks, especially in cases where multiple information such as data, voice, and real-time video been supported. Through ATM, each of this information can pass through a single network connection (Aladwani & Palvia, 2002). Other benefits include their high speed of doing transactions, time saving, flexibility and efficient allocation of network bandwidth. With all these benefits, it has been discussed as an important factor of enhancing the user satisfaction using information systems (DeLone & McLean, 1992; Srinivasan, 1985).
Usability and design are vital factors to human-computer interaction. This is because they influence user task performance by computer (Palmer, 2002). Benbunan-Fich, 2001) argues that, usability refers to the ability, which the user can communicate clearly without misunderstanding interface system. Benbunan-Fich has continued addressing that, when online banking uses reliable web site design it enhances its usability, which in return plays a major role of attracting, sustaining together with retaining consumer interest in the site. Other studies have shown that, in addition, retaining consumers’ interest in site that influences user satisfaction (Liu et al, 2008; Zviran, Glezer, & Avni, 2006). This implies that, the design of the online banking web site also has a positive influence on customer satisfaction.
Security of online banking has a positive influence on the user fulfillment. Banking systems keep their customer to be safe and secure in doing their online transaction. Despite of technical problems within Internet security such as digital signatures, cryptography, certificates, and authentication, banks ensure customers been provided with monetary transaction in doing their transactions. In ensuring security, banking organizations gives their clients a personal pin number used in ATM transactions and make sure the password is not long enough in preventing it from hacked. Additionally, customers have been advised not to share their online information with anyone (Liao & Cheung, 2008). This has developed safety and privacy during banking transactions causing customer satisfaction. Several studies have shown that, security is a vital determinant of online banking (Jun & Cai, 2001). On the contrary, Jun and Cai argues that, if the security concern of online banking is not practiced may cause theft leading to customer dissatisfaction.
Support services in online banking influences contentment. Support services refer to the responsiveness dimension of services quality. According to Joseph and Stone (2003), they may also be defined as the ability of solving customer need and providing feedbacks concern regarding online banking. Providing support in performing bank transactions is always required. This is because of the different functions performed within banking transaction such as information on individual financial planning, investments along with savings in owning estates. The information content on this information attributes to the positive influence on client satisfaction. Ranganathan and Ganapathy (2002) argue that, support in information content in online banking, has a major role in influencing the positive behavior of consumers. Support of information content has motivated many to use online banking system. With many shopping online, paying their bills and carrying out bank transactions, have shown the benefits online banking has on the consumer.
Conclusion
Having discussed how online banking enhance customer satisfaction, it obvious that it enables an individual to be able to make bank transactions at high speed, easy to use, offer security, quality of information content and the use of web site design, these factors fulfilling the customer satisfaction. However, having discussed the benefits, it has on the user; it is vital to discuss in brief what may not lead to individual fulfillment. For many people, the biggest risk of online banking is learning to trust it. For instance, some doubt whether their transaction go through safely, doubts of pressing transfer button twice among others. To prove its effectiveness, user is advised to print the transactions receipt in addition to, keeping it in bank records until the timer it shows on the bank statement or personal site.
Starting online banking may take time, in registering bank’s online program; one should have an ID and sign a form at a bank branch. In cases where a couple wishes to manage theirs assets together online, one may have to sign a durable power of attorney before the bank allows their holding together. This may take quite a time, thus leading to customer dissatisfaction. Despite of the few disadvantages it has, the benefits it has on the user cannot be underline. As discussed in this paper, it significantly contributes to client satisfaction.
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