The technology is becoming important in the future development of the financial industry especially, banking industry. Electronic banking channels are providing alternatives for faster delivery of banking services to the customers such as online banking. Electronic-banking is the latest delivery channel of banking services. Once banking institutions recognized the low processing cost per transaction via the internet, they began viewing online banking as an extension of the bank rather than as an add-on service. The motivation to introduce online banking now also included new business potential, additional funds from new and existing customers, expansion in geographical reach, image as a tech-savvy bank, especially if targeting the youth and the threat of customers shifting loyalty if they did not introduce it. A number of important questions are faced banks, such us how to take full benefit of technology opportunities, how e-channels change the ways customers interact with the financial services provider etc.
The growth of using online banking: Gartners Group’s 1999 report, with the fast shift in internet access, it has been a quick growth in online banking in the USA; for more than 10 million in 1999 to the projected 35 million by the year 2003 (Barto, 1999). Also, the growth in using electronic banking has been the same in Europe especially Germany, Norway and Sweden (Bons, 1999; Slywotzky,2001). The banks are adopting online services-internet banking portals and mobile, for stay in the front of the competition and firm customer relationships. (Fonsecaetal.,2001;Saatcioglu,2001). In Saudi Arabia, the growth in online banking is not as much as in the USA and European countries. According to Al Watan newspaper (2015) 84% of the banking transactions are by paper money in Saudi Arabia, although the proliferation of online banking channels. The Secretary-General of the Committee on Information and awareness banking Saudi banks said that “we need period of time in order to towards the gradual shift of electronic banking transactions” (Al Watan newspaper, 2015). Even though the work and effort that the Saudi Arabian Monetary Agency and banks for aware the customers of the importance and ease of using electronic banking. A recent study by a management consultant firm AT Kearney (2013) found that the use of internet is high in the Gulf countries: 99 percent in Bahrain, 96 percent in the UAE, 95 percent in Qatar and 66 percent in Saudi Arabia. In return, internet spread in the United States stands at 87 percent, Germany at 89 percent, the United Kingdom at 90 percent and France at 83 percent. The numbers in Golf countries are much higher than Europe and US during the appearance of online banking. However, Gulf countries has a low percentage of using online banking, 20% of the bank customers in the Gulf region have opened online banking accounts, comparing with the other countries such as Japan, Korea and the Scandinavia region, they stand at approximately 70 percent. Advantages and disadvantages of using online banking: Banking and saving website (2013) pointed out several advantages of E-banking such as: convenience, the banks that offer online banking are available for the customers as long as there is an internet connection. …show more content…
However, if the customer does not have internet, customer service is available through telephone banking. Comparing with traditional banks, E-banking is not time consuming for the client and the banker. Also, SCN Education B.V. (2001) mention other advantages of online banking which are: the customer have better control and monitoring over the bank account. Also, he can set up electronic bill payment and transfer money from one account to another. In other hand, SCN Education B.V. (2001) also noted the disadvantages of electronic banking. Firstly, the ability to access into the account depending on technology, the customer should have a device and internet connection in order to enter into his/her bank information, if one of the factors has been lost, the online banking will be unavailable. As well the more the client knows about technology, the more conveniently using online banking. The defects of online banking from the Banking and saving website (2013) perspective are banking relationship, which means the traditional bank allows a human touch in providing services which could by missing in the online
The growth of using online banking: Gartners Group’s 1999 report, with the fast shift in internet access, it has been a quick growth in online banking in the USA; for more than 10 million in 1999 to the projected 35 million by the year 2003 (Barto, 1999). Also, the growth in using electronic banking has been the same in Europe especially Germany, Norway and Sweden (Bons, 1999; Slywotzky,2001). The banks are adopting online services-internet banking portals and mobile, for stay in the front of the competition and firm customer relationships. (Fonsecaetal.,2001;Saatcioglu,2001). In Saudi Arabia, the growth in online banking is not as much as in the USA and European countries. According to Al Watan newspaper (2015) 84% of the banking transactions are by paper money in Saudi Arabia, although the proliferation of online banking channels. The Secretary-General of the Committee on Information and awareness banking Saudi banks said that “we need period of time in order to towards the gradual shift of electronic banking transactions” (Al Watan newspaper, 2015). Even though the work and effort that the Saudi Arabian Monetary Agency and banks for aware the customers of the importance and ease of using electronic banking. A recent study by a management consultant firm AT Kearney (2013) found that the use of internet is high in the Gulf countries: 99 percent in Bahrain, 96 percent in the UAE, 95 percent in Qatar and 66 percent in Saudi Arabia. In return, internet spread in the United States stands at 87 percent, Germany at 89 percent, the United Kingdom at 90 percent and France at 83 percent. The numbers in Golf countries are much higher than Europe and US during the appearance of online banking. However, Gulf countries has a low percentage of using online banking, 20% of the bank customers in the Gulf region have opened online banking accounts, comparing with the other countries such as Japan, Korea and the Scandinavia region, they stand at approximately 70 percent. Advantages and disadvantages of using online banking: Banking and saving website (2013) pointed out several advantages of E-banking such as: convenience, the banks that offer online banking are available for the customers as long as there is an internet connection. …show more content…
However, if the customer does not have internet, customer service is available through telephone banking. Comparing with traditional banks, E-banking is not time consuming for the client and the banker. Also, SCN Education B.V. (2001) mention other advantages of online banking which are: the customer have better control and monitoring over the bank account. Also, he can set up electronic bill payment and transfer money from one account to another. In other hand, SCN Education B.V. (2001) also noted the disadvantages of electronic banking. Firstly, the ability to access into the account depending on technology, the customer should have a device and internet connection in order to enter into his/her bank information, if one of the factors has been lost, the online banking will be unavailable. As well the more the client knows about technology, the more conveniently using online banking. The defects of online banking from the Banking and saving website (2013) perspective are banking relationship, which means the traditional bank allows a human touch in providing services which could by missing in the online