TRUST OR DISTRUST ON ONLINE BANKING
SUBMITTED BY: ABDUL SAMAD MUNAF
Letter of Authorization
14th April, 2010
To Whom It May Concern:
Under the authorization of Mr. Ather Akhlaq, Professor for the course Internet Banking & EPS at the Institute of Business Management, we have been required to obtain all the possible information and material to prepare a detailed and accurate research based term report. This report is regarding compilation of data carried out with respect to questioner and has been completed and submitted in the assigned due date.
Letter of Transmittal
14th April, 2010
Mr. Ather Akhlaq
Institute of Business Management
Karachi – 75100
Dear Mr. Ather Akhlaq:
Here is the research report about the trust or distrust on online banking. This report as per your instruction has covered all the authentic areas of concern and contains all the relevant information.
We would dearly like to thank you for the faith you showed in our capabilities & the encouragement you gave us when assigning this report. We have tried our best to gather as much information as possible. All rules and regulations for the preparation of the formal report have been taken into consideration. If there is anything else you wish to know. We will be glad to assist. Sincerely,
Table of Content
Similar to the adoption of automatic teller machines, banks around the world are looking at online banking services as the next technology to reduce costs while maintaining or enhancing services to the customer. In developing countries, the low cost of online banking may enable banks to reach new customers, much like the cell phone offered new possibilities in telephony. Banks must understand, however, that the mediating use of technology increases interpersonal distance between banks and their customers, which can both decrease trust and exacerbate distrust. This article examines the role of trust and distrust in online banking. A framework for categorizing existing and potential online banking users based on their trust and distrust of online banking is presented. Categorizations of users are discussed along with recommendations for how banks can address customer concerns.
As online banking is becoming the main source of banking during the past years. the emergence of online banking has revolutionized the banking environment and due to this more business , individuals etc use online banking because it saves time , speed up the process , reliable , easy to communicate , feasible , can use it from anywhere any time (availability ) . These factors encourage the user to use online banking more frequently and relay on the online banking more than normal banking. In many developing countries online banking is preferred over normal banking and it is also encouraged by the banking sector because of the low cost, convenience, reliability. As use of online banking in Pakistan is not common among the business and individual because of the major issues like communication, security, availability, etc. the major banking activities are done the traditional way. As environment is changing so more and more people are moving towards online banking then normal banking .when using online banking security is the major issue faced. Due to security issues the major business online banking users are reluctant on using online services. Due to online banking services the communication and the interpersonal relationship between the bank and the user has decrease which has affected the trust of the user on online banking. In this research we are focusing on the trust and distrust of people on...
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