E Banking

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International Journal of Multidisciplinary Research Vol.1 Issue 7, November 2011, ISSN 2231 5780
MARKETING OF E-BANKING SERVICES: A CRITICAL ANALYSIS ON LIFECYCLE DEMOGRAPHICS, ENABLING AND DISABLING FACTORS
DR. HARMAN PREET SINGH*; SHAVETA T GROVER**
*Assistant Professor, Department of Commerce, PGDAV College (University of Delhi), New Delhi 110065. **Assistant Professor, Budha College of Management, Ramba, Karnal, Haryana - 132001.
ABSTRACT Customer satisfaction is the key to market e-banking services. So, banks need to target the unique needs of customers to succeed in providing e-banking services. In this research, an analysis of customer lifecycle demographics has been carried out to enable banks to determine the type of customers worth targeting. The factors that enable e-banking has been determined and scrutinized for adoption. These factors should be promoted by banks. The factors that disable e-banking has also been determined and scrutinized. The effect of these factors should be neutralized by banks. Moreover in future, banks should be looking to convert these factors into competitive advantage. Primary data has been collected from 175 respondents to analyze lifecycle demographics, e-banking enabling and disabling factors. The analysis of data has been done by examining distribution of responses based on frequencies, KMO and Bartlett's test, factor analysis and by employing correlation matrix. It comes out from the research that banks should focus on more qualified, in service, high income earning, young men and women. They should focus on and promote Bank Administrative, Usage Advantage and Independency as enabling factors. They should also neutralize the effect of Reliability, Server Hamper and Personal Memorizing as disabling factors. KEYWORDS: Demographics, Disabling Factors, E-Banking, Enabling Factors, Internet.
1. INTRODUCTION
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Electronic banking is commonly known as Internet banking or e-banking. The concept of ebanking has been defined in many ways. Daniel (1999) defines e-banking as the delivery of banks' information and services by banks to customers via different delivery platforms that can be used with different terminal devices such as a personal computer and a mobile phone with browser or desktop software, telephone or digital television. It can also be defined as the delivery of banking services through the open-access computer network (the Internet) directly to customers home or private address. In recent years, there has been explosion of Internet based e-banking applications (Lau, 1997; Liao and Cheung, 2003). In 2006, Pew Internet and American Life Project reported that nearly
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half of Internet users in the United States i.e. 63 million adults bank online (Fox and Beier, 2006). E-banking saves precious time and energy of the customers as they do not have to wait in long lines in front of banks to get their simple jobs done. It is easy as well as convenient to do transactions using e-banking. Due to e-banking, the banks are enjoying numerous advantages like wider and deeper reach to the customers, quicker time to market, ability to introduce new products and services quickly, greater customer loyalty etc. However, customers still have a difficult time using e-banking. In many ways, e-banking is not unlike traditional payment, enquiry and information processing system. The only perceptible difference is that it utilizes a different delivery channel. So, any decision to adopt e-banking is normally influenced by a number of factors. Beckett et al (2000) states that the emergence of new forms of technology has created highly competitive market conditions for bank providers. The changed market conditions demand for banks to better understand the consumers' needs. 2. REVIEW OF LITERATURE The review of literature suggests four pertinent areas in e-banking: Customer Satisfaction Lifestyle Demographics of Customers E-banking Enabling factors E-banking Disabling factors 2.1. CUSTOMER SATISFACTION Agarwal and Prasad (1998) showed that relative advantage of an innovation is positively related to its rate of adoption. Similarly, as e-banking services allow customers to access their banking accounts from any location and at any time of the day, it gives advantage to customers to be able to manage their finances properly and in a more convenient way. E-banking services offer relative advantages when compared to branch banking and other alternative methods in terms of price, convenience and performance. According to Jun and Cai (2001), the banking industry also provides transactional and other financial services to their customers over the Internet. In the recent years, more and more number of traditional brick and mortar banks has been moving to the Internet, in order to sustain their competitiveness in the market place. While Internet banks have focused their attention on improving their banking service quality, many of them seem to be lagging behind their customers ever increasing demands and expectations. Mattila (2001) concedes that customer satisfaction is a key to success in Internet banking and banks will use different media to customize products and services to fit customers' specific needs in the future. Molla and Licker (2001) found that customer satisfaction becomes an important issue while corporations introduce service online.
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2.2. LIFECYCLE DEMOGRAPHICS OF CUSTOMERS Sohail and Shanmugham (2004) wrote a paper concerning customers preferences in e-banking in Malaysia. Their results were based on a survey of 300 respondents. Their conclusion indicates that age and educational qualifications of electronic and conventional banking have no significant impact on E-banking adoption. Instead, they argued that accessibility to the Internet, awareness of E-banking and customers resistance to change are the main factors influencing the adoption. Hill (2004) conducted a study concerned with identifying the characteristics of online banking users. She mentioned that it is commonly assumed that demographics do influence the acceptance of electronic self-service tools, such as online banking. The results of the study were that people who use such services are young, trendy and high earning. They actively seek out online banking tools, and they want to conduct all transactions through the same channel. An empirical study by Fox and Beier (2006) was concerned with the number of people banking online and their gender in addition to their age. The study found that men are somewhat more likely to bank online than women. Also, younger and middle-aged Internet users are the most likely group to turn to online banking. The highest category using online banking in the survey was people aged 30 to 49, the lowest category is above 65 and the rest of them are in between. 2.3. E-BANKING ENABLING FACTORS Liao and Cheung (2002) stated that willingness to use Internet banking depends on the expectations of accuracy, security, network speed, user-friendliness, user involvement, and convenience. Security issue is crucial issue in e-banking as it directly involves the users actives (Cockburn and Wilson, 1996; Pavlou, 2001). Liao and Cheung (2003) suggest that consumer perceptions of transaction security, transaction accuracy, user friendliness, and network speed are the critical factors for success in Internet banking. Pikkarainen et al (2004) mentioned two fundamental reasons underlying online banking development and penetration. First, banks get significant cost savings in their operation through e-banking services. It has been proved that online banking channel is the cheapest delivery channel for banking products once established. Second, banks have reduced their branch networks and downsized the number of service staff, which has paved the way to self-service channels as quite many customers felt that branch banking took too much time and effort. On the other hand, customers enjoy self-service, freedom from time and place constraint, and reduced stress of queuing in banking hall. Therefore, time and cost savings and freedom from place have been found the main reasons underlying online banking acceptance. Liao and Lin (2008) stress that the success in Internet banking will be achieved with tailored financial products and services that fulfill customer' wants, preferences and quality expectations. 2.4. E-BANKING DISABLING FACTORS Fitzergerald (2004) concluded that there are common perceptions regarding online banking with disregard to demographic, geographic or psycho-graphic characteristics. He argued that among the major non-adoption areas are security concerns and lack of awareness of online banking.
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As per Sayar and Wolfe (2007), privacy is the single most important characteristic because of its effect on customers perceptions. 3. OBJECTIVES OF THE STUDY After conducting an extensive review of the literature, it becomes clear that e-banking system can be successful if it leads to customer satisfaction. So, following objectives have been set for the purpose of this study: To study the influence of lifecycle demographics on the adoption of e-banking. To identify, appreciate and analyze the e-banking enabling variables. To identify, appreciate and analyze the e-banking disabling variables. 4. RESEARCH METHODOLOGY A structured questionnaire was used by the researchers consisting of 24 questions divided into three parts. Part A consists of 6 questions regarding demographic profile of the respondents. Part B contained 10 questions related to e-banking enabling factors. Part C consisted of 8 questions pertinent to e-banking disabling factors. All the statements of part B and C were represented in five point Likert rating scale. The anchors used in the scale stand for: 5 = Strongly Agree (SA) 4 = Agree (A) 3 = Neutral (N) 2 = Disagree (D) 1 = Strongly Disagree (SD) The structured questionnaire was answered by 175 respondents. The data obtained from Part A of the questionnaire was analyzed by examining the distribution of responses based on frequencies. Part B and C were analyzed by the Statistical Package for Social Sciences (SPSS) 16.0 for Windows. 5. FINDINGS OF RESEARCH Based upon the three objectives of the research, the findings of research are categorized as under: 5.1. ANALYSIS OF LIFECYCLE DEMOGRAPHICS ON E-BANKING ADOPTION One of the objectives of this research is to study the influence of lifecycle demographics on the adoption of e-banking. So, few demographic variables like age, marital status, gender, occupation, qualification and annual income have been selected. The demographic profile of the respondents is shown in Table 1.
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TABLE 1: DEMOGRAPHIC PROFILE OF THE RESPONDENTS Particulars Age Below 25 25-45 45-65 Marital Status Married Unmarried Gender Male Female Qualification Graduate Post Graduate Professional Occupation Student Service Business Professional Annual Income Less than 1 lacs 1-2 lacs 2-4 lacs Above 4 lacs Frequency 71 80 24 85 90 105 70 48 102 25 20 89 45 21 31 41 39 64 Percentage 40.6 45.7 13.7 48.6 51.4 60.0 40.0 27.4 58.2 14.2 11.4 50.9 25.7 12 17.7 23.4 22.3 36.6
Table 1 shows that first demographic variable is age. It reveals that 40.6 percent of respondents are below 25 years of age, whereas 45.7 percent of respondents lies in the age group of 25-45 and only 13.7 percent belong to 45- 65 age category. It can be interpreted that mostly youngsters and people in middle age group are more inclined towards e-banking services. Marital status of the respondents depicts percentage of married and unmarried respondents as 48.6 percent and 51.4 percent respectively. It can be inferred that marital status does not have major influence on the adoption of e-banking.
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Another demographic variable is gender. The percentage of males is 60 percent and percentage of females is 40 percent. It shows that percentage of males is more than that of females but the difference is not so much. So, it can be stated that males are more inclined to use e-banking but females are getting insight in this area. Fourth demographic variable is qualification. It shows maximum percentage of post graduates followed by graduates and professionals with the percentages of 58.2 percent, 27.4 percent and 14.2 percent respectively. So, it can be inferred that level of qualification does influence the adoption of e-banking. Another demographic variable is occupation. It reveals that service class respondents are 50.9 percent, business class are 25.7 percent, professionals 12 percent and student class 11.4 percent. So, service class people are most likely to adopt e-banking. Another important variable is annual income. It depicts that respondents falling in the category of above 4 lacs having maximum percentage of 36.6 percent, and least percentage category is less than 1 lacs. It can be stated that e-banking adoption is influenced by the income level. 5.2. ANALYSIS OF E-BANKING ENABLING FACTORS The 10 variables are analyzed in order to identify the e-banking enabling variables perceived for formulating strategies in order to target customers having banking needs. Each variable corresponds to a statement in Part B of the questionnaire. They are depicted in Table 2. TABLE 2: ENABLING FACTORS STATEMENTS AND CORRESPONDING VARIABLES Statement 1 Statement 2 Statement 3 E-banking provides all information of my account E-banking is simple to understand Only authorized persons can access their e-banking account E-banking procedure is lucid and clear to me E-banking provides easy to follow instructions Banks increase the awareness about security of the data My future usage of e-banking is expected to increase Variable 1 Variable 2 Variable 3 All Information Provider (AIP) Simple Operation (SO) Authorized User (AU)
Statement 5 Statement 6 Statement 7
Variable 5 Variable 6 Variable 7
Easy Instructions (EI) Awareness About Security (AAS) Future Usage (FU)
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Statement 4
Variable 4
E-Banking Procedure (EBP)
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E-banking saves time E-banking saves cost E-banking reduces dependencies on others
Variable 8 Variable 9 Variable 10
Saves Time (ST) Saves Cost (SC) Reduce Dependency (RD)
The analysis reveals that respondents consider all variables as important in adopting e-banking as a need of the hour. Here, certain variables are grouped together into specific segments to identify e-banking enabling factors by applying factor analysis using Principal Component Analysis. Kaiser-Meyer-Olkin and Bartlett's Test of Sphericity are used to examine the appropriateness of factor analysis. As shown in Table 3, the approximate ChiSquare statistic is 231.498 with 45 degrees of freedom which is significant at 0.05 level. The KMO static (.751) is also large (>.5). Hence, factor analysis is considered as an appropriate technique for further analysis of data. TABLE 3: KMO AND BARTLETT'S TEST Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx. Chi-Square Df Sig. Source: Primary Data Results of Principle Component Analysis for e-banking enabling variables are calculated into communalities (Table 4), total variance explained (Table 5) and rotated component matrix (Table 6) shown. TABLE 4: COMMUNALITIES Initial All Information Provider (AIP) Simple Operation (SO) Authorized User (AU) E-banking Procedure (EBP) Easy Instructions (EI) Awareness About Security (AAS) 1.000 1.000 1.000 1.000 1.000 1.000 Extraction
.751 231.498 45 .000
.632 .463 .518 .551 .548 .623
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Initial Future Usage (FU) Saves Time (ST) Saves Cost (SC) Reduce Dependency (RD) 1.000 1.000 1.000 1.000
Extraction .409 .575 .572 .566
TABLE 5: TOTAL VARIANCE EXPLAINED Initial Eiganvalues Component 1 2 3 4 5 6 7 8 9 10 Total 2.749 1.702 2.006 .855 .772 .686 .632 .584 .522 .493 % of Variance 27.489 17.018 20.058 8.548 7.718 6.862 6.316 5.840 5.223 4.927 Cumulative % 27.489 44.507 64.565 63.113 70.832 77.693 84.009 89.850 95.073 100.000
Rotation Sums of Squared Loadings Total 2.749 1.702 2.006 % of Variance 27.489 17.018 20.058 Cumulative % 27.489 44.507 64.565
TABLE 6: ROTATED COMPONENT MATRIX Variables 1 All Information Provider (AIP) Simple Operation (SO) -.533 .653 Component 2 .024 .173 3 .589 .083
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Variables 1 Authorized User (AU) E-Banking Procedure (EBP) Easy Instructions (EI) Awareness About Security (AAS) Future Usage (FU) Saves Time (ST) Saves Cost (SC) Reduce Dependency (RD) .397 .503 .393 .565 .612 .422 .272 .068
Component 2 .576 -.081 .572 .381 -.055 .623 .660 -.494 3 -.168 -.540 .259 .397 .178 .090 .250 .563
Retaining only the variables with Eigen values greater than one (Kaisers Criterion), one can infer that 27.489 % of variance is explained by factor 1; 17.018 % of variance is explained by factor 2; 20.058 % of variance is explained by factor 3 and together all three factors contributed to 64.565 % of variance (Table 5). On the basis of Varimax with Kaiser Normalisation, 3 factors have emerged. Each factor is constituted of all those variables that have factor loadings greater than or equal to 0.5 (Table 6). Thus variables 2nd, 4th, 6th and 7th constitute the first factor, conceptualized as Bank Administrative. Variables 3rd, 5th, 8th and 9th constitute the second factor conceptualized as Usage Advantage. Variables 1st and 10th constitute third factor conceptualized as Independency. The identified factors with the associated variable and factor loadings are given in Table 7. TABLE 7: FACTORS, VARIABLES AND LOADINGS
Factor Name
Variables Simple Operational (SO)
Factor Loadings .653 .503 .565 .612 .576
Bank Administrative
E-Banking Procedure (EBP) Awareness About Security (AAS) Future Usage (FU)
Usage Advantage
Authorized User (AU)
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Factor Name
Variables Easy Instructions (EI) Saves Time (ST) Saves cost (SC) All Information Provider (AIP)
Factor Loadings .572 .623 .660 .589 .563
Independency Reduce Dependency (RD)
Now, we explain the constituents of these three factors and interrelationship among the constituents using correlation matrix (Table 8). TABLE 8: CORRELATION MATRIX Bank Administrative S O SO EB P AA S FU AU Usage Advantage EI ST SC Independenc AIP 1 EBP AAS FU AU Usage Advantage EI ST .230*
*
Independenc y SC AIP .270*

*
RD .220** .227* * .139*
.255* .270*
* *
.278* .208* .320*

* * *
.115* * .074 -.024 .150* -.188* -.116 .312** 1
Bank Administrati ve
.068 1
.230*
*
.098
.139*
.227*
*
.282*
*
.296* .293* .349*

* * *
210** .310*
*
.179*
.196*
*
.121 .289*
*
.166* .278** .252*

*
.048 1
.061 .255*
*
-.013 .466** .315** .197**
.063 1
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.039
.006
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Bank Administrative y RD
Usage Advantage
Independenc y 1
* Correlation is significant at the level 0.05 (1-tailed) p<.05 ** Correlation is significant at the level 0.01 (1-tailed) p<.01 The constituents of the Bank Administrative factor are Simple Operation (SO), E-Banking Procedure (OBP), Awareness About Security (AAS) and Future Usage (FU). As per Table 8, the correlation matrix reveals that SO has highly significant correlation with EBP, AAS and FU. EBP does not exhibit any relationship with AAS but highly significant relation with FU. AAS shows very significant relationship with FU (p<.01). This indicates that the usage of e-banking would increase in future if e-banking procedure is simple to understand, lucid and clear, and incorporates awareness about security of data. However, lucid and clear e-banking procedure does not necessarily lead to increase in awareness about security of data. The constituents of Usage Advantage factor are Authorized User (AU), Easy Instructions (EI), Saves Time (ST) and Saves Cost (SC). The matrix depicts that AU has highly significant correlation with EI (p<.01), no correlation with ST and negative correlation with SC (p<.05). EI does not show any significant relation with ST and SC. ST has a very high correlation with SC (p<.01). This suggests that authorized people can access their e-banking account if they are given easy to follow instructions. However, this process may not lead to time and cost savings. Independency factor is constituted by All Information Provider (AIP) and Reduce Dependency (RD). Correlation matrix shows a highly significant relationship between AIP and RD. It can be inferred that the independency of users increases with the information provided to them by ebanking. 6. ANALYSIS OF E-BANKING DISABLING FACTORS The 9 variables are analyzed in order to identify the e-banking disabling factors. Each variable corresponds to a statement in Part C of the questionnaire. They are depicted in Table 9. TABLE 9: DISABLING FACTORS STATEMENTS AND CORRESPONDING VARIABLES Statement 1 Statement 2 Statement 3 Statement 4 Banks website is secure for the Variable 1 funds transfer Bank website page takes long Variable 3 time to open Server breakdown creates hurdles Variable 4 while operating e-banking Users of e-banking remember Variable 5 Security (S) Long Time (LT) Server Break Down (SBD) Password Remembrance (PR)
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their password Statement 5 Password should not be blocked Variable 6 by banks even if customer is not using e-banking for some time period Banks help us to get education/ Variable 7 knowledge about e-banking E-banking website problem solution menu provides Variable 8 Variable 9 Password Blockage (PB)
Education/Knowledge (E/K) Problem Solution Menu (PSM) Trust (T)
I trust my e-banking websites
This is important as banks can work on neutralizing the effect of these disabling factors and subsequently convert them into competitive advantages. The analysis reveals that respondents consider all variables as problems in adopting e-banking. The variables are grouped together into specific segments to identify e-banking disabling factors by applying factor analysis using Principal Component Analysis. Kaiser-Meyer-Olkin and Bartlett's Test of Sphericity are used to examine the appropriateness of factor analysis. From Table 10, the approximate ChiSquare statistic is 160.613 with 36 degrees of freedom which is significant at 0.05 level. The KMO static (.610) is also large (>.5). Hence factor analysis is considered as an appropriate technique for further analysis of data. TABLE 10: KMO AND BARTLETT'S TEST Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx. Chi-Square Df Sig. Source: Primary Data Results of Principle Component Analysis for e-banking disabling factors are calculated into communalities (Table 11), total variance explained (Table 12) and rotated component matrix (Table 13) shown. .610 160.613 36 .000
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TABLE 11: COMMUNALITIES Initial Security (S) Long Time (LT) Server Break Down (SBD) Password Remembrance (PR) Password Blockage (PB) Education/Knowledge (E/K) Problem Solution Menu (PSM) Trust (T) 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .514 .537 .713 .395 .331 .530 .498 .647
TABLE 12: TOTAL VARIANCE EXPLAINED Initial Eiganvalues Component 1 2 3 4 5 6 7 8 9 Total 2.078 2.457 1.256 .949 .850 .733 .640 .572 .465 % of Variance 23.092 26.184 13.958 10.546 9.446 8.146 7.107 6.356 5.165 Cumulative % 23.092 49.277 63.235 63.781 73.227
Rotation Sums of Squared Loadings Total 2.078 2.457 1.256 % of Variance 23.092 26.184 13.958 Cumulative % 23.092 49.277 63.235
81.373 88.480 94.835 100.000
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TABLE 13: ROTATED COMPONENT MATRIX Variables 1 Security (S) Long Time (LT) Server Break Down (SBD) Password Remembrance (PR) Password Blockage (PB) Education/Knowledge (E/K) Problem Solution Menu (PSM) Trust (T) .627 .332 .216 .380 .085 .438 .644 .748 Component 2 -.305 .649 .773 -.384 -.245 -.168 .263 -.192 3 -.168 .074 .261 .521 .513 .556 .119 -.223
Retaining only the variables with Eigen values greater than one (Kaisers Criterion), one can infer that 23.092 % of variance is explained by factor 1; 26.184 % of variance is explained by factor 2; 13.958 % of variance is explained by factor 3 and together all three factors contributed to 63.235 % of variance. On the basis of Varimax with Kaiser Normalisation, 3 factors have emerged. Each factor is constituted of all those variables that have factor loadings greater than or equal to 0.5. Thus variables 1st, 8th and 9th constitute the first factor conceptualized as Reliability. Variables 3rd and 4th constitute the second factor conceptualized as Server Hampering. Variables 5th, 6th and 7th constitute the third factor and are conceptualized as Personal Memorizing Elements. The identified factors with the associated variable and factor loadings are shown in Table 14. TABLE 14: FACTORS, VARIABLES AND LOADING Factor Name Reliability Security (S) Problem Solution Menu (PSM) Trust (T) Server Hamper Long Time (LT) Server Break Down (SBD) Variables Factor Loadings .627 .644 .748 .649 .773
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Factor Name Personal Memorizing
Variables Password Remembrance (PR) Password Blockage (PB) Education/Knowledge (E/K)
Factor Loadings .521 .513 .556
Now, the constituents of these three factors and interrelationship among the constituents are explained using correlation matrix (Table 15). TABLE 15: CORRELATION MATRIX Reliability S S Reliability PSM T Server Hamper LT SBD PR Personal Memorizing PB E/K * Correlation is significant at the level 0.05 (1-tailed) p<.05 ** Correlation is significant at the level 0.01 (1-tailed) p<.01
Server Hamper T LT .065 .195** .091 1 SBD -.100 .195** .020 .350** 1
Personal Memorizing PR .147* .172* .194** -.032 -.080 1 PB -.015 -.006 .075 -.040 -.040 .110 1 E/K .215** .181** .176** .012 .071 .176* .121 1
PSM .215** 1
.408** .283** 1
The first disabling factor is Reliability. It is constituted of Security (S), Problem Solution Menu (PSM) and Trust (T). The correlation matrix reveals that S, PSM and T has highly significant correlation amongst each other (p<.01). This suggests that provision of problem solution menu on e-banking websites improves customers perception of e-banking security and enhances their trust. The constituents of Server Hamper factor are Long Time (LT) and Server Break down (SBD). Correlation matrix shows highly significant correlation between LT and SBD (p<.01). It indicates that server breakdown leads to loss of significant amount of time.
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Personal Memorizing factor constituents are Password Remembrance (PR), Password Blockage (PB) and Education/Knowledge (E/K). Correlation matrix reveals that PR does not exhibit any significant relationship with PB but has significant relation with E/K (p<.05). It can be stated that banks should educate customers to remember their e-banking passwords. However, banks can continue the practice of blocking customer accounts if they remain dormant for a certain amount of time. 7. DISCUSSION As per the objectives of the research, the discussion is done in following three areas: Lifecycle demographics of customers E-banking enabling factors E-banking disabling factors 7.1. LIFECYCLE DEMOGRAPHICS OF CUSTOMERS It emerges from the research findings that youngsters and middle aged people are more inclined towards e-banking. This is in line with the findings of Fox and Beier (2006) and Hill (2004) but does not agree with the findings of Sohail and Shanmugham (2004). Marital status does not have major influence on the adoption of e-banking. No such relationship could also be found in literature review. Men are more likely to adopt e-banking as compared to women. This is also in line with the findings of Fox and Beier (2006). But it also emerges that women are fast catching up with men in this area. The level of qualification does influence the adoption of e-banking. More qualified people have greater chances to use e-banking. This contradicts the findings of Sohail and Shanmugham (2004). Employed service class people are most likely to use e-banking. At the same time, with the increase in income level, the usage of e-banking increases. 7.2. E-BANKING ENABLING FACTORS Bank Administrative factor has been conceptualized as an important factor in the data analysis. In this; simplicity, lucidity and clarity of e-banking transactions are stressed. This is in line with the findings of Liao and Cheung (2002) and Liao and Lin (2008). At the same time, awareness about security of e-banking transactions needs to be stressed. This supports the findings of Liao and Cheung (2003).
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Usage Advantage is the second conceptualized factor. It stresses the importance of issuing easy to follow instructions by banks so that authorized people can access their e-banking account. This takes the findings of Cockburn and Wilson (1996), Pavlou (2001) and Liao and Cheung (2002) to a new level. Independency has emerged as the third enabling factor. It has been found that independency of users increases with the information provided to them by e-banking. It has been reported by Pikkarainen et al (2004) that customers enjoy self-service, freedom from time and place constraint, and reduced stress of queuing in banking hall. So, pertinent information should be provided to them in a timely manner. 7.3. E-BANKING DISABLING FACTORS Reliability has been identified as the first disabling factor. If the e-banking system is perceived unreliable, its chances of succeeding decline significantly. E-banking websites should enable problem solution menu on their websites to improve customers perception of e-banking security and build trust. This takes the findings of Fitzergerald (2004) to a new level. Server Hamper is identified as second disabling factor. It should be avoided by banks as it leads to loss of significant amount of time. The last disabling factor is Personal Memorizing. This is an important factor that helps customers to maintain their privacy. Banks should educate their customers to memorize their passwords. It supports as well as furthers the findings of Sayar and Wolfe (2007). 8. CONCLUSION AND RECOMMENDATIONS Youngsters and middle aged people are more inclined to use e-banking. They should be specifically targeted by banks to propagate e-banking. Since, women are fast catching up with men on the use of e-banking, so banks should adopt strategies that are appealing to both men and women. At the same time, banks should focus on more qualified, in service, high income earning, young men and women. Banks should focus on and promote following three e-banking enabling factors:
BANK ADMINISTRATIVE It is an administrative factor concerned with the bank providing e-banking. Banks should adopt an administrative procedure for e-banking that is simple to understand as well as lucid and clear for customers. Steps should be taken to incorporate consumers perceptions of transaction security as well as transaction accuracy into the e-banking system. USAGE ADVANTAGE This factor provides usage advantage to customers. Banks should issue easy to follow instructions to enable authorized people to access their ebanking account. The e-banking system should support user friendliness and possess good network speed.
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INDEPENDENCY This factor promotes independency of e-banking user. Banks should provide pertinent information to e-banking users to promote their independency. Banks should focus on neutralizing the effect of following disabling factors: RELIABILITY This factor underscores the importance of reliability of e-banking services provided by banks to customers. Banks should provide problem solution menu on their e-banking websites to improve customers perception of security and enhance their trust. SERVER HAMPER This factor underlines the importance of avoiding e-banking server breakdown. Banks should adopt systems to avoid server hamper as it leads to loss of significant amount of time. PERSONAL MEMORIZING This factor highlights the importance of memorizing certain critical information by e-banking users. Banks need to educate their customers to remember their e-banking passwords. REFERENCES 1. Agarwal R. and Prasad J. (1998). A conceptual and operational definition of personal innovativeness in the domain of information technology. Information Systems Research, Volume 9, Number 2, pp. 204-215. 2. Beckett A., Hewer P. and Howcroft B. (2000). An exposition of consumer behaviour in the financial services industry. The International Journal of Bank Marketing, Volume 18, Number 1. 3. Cockburn C. and Wilson T. (1996). Business use of the World Wide Web. International Journal of Information Management, Volume 16, Number 2, pp. 83-102. 4. Daniel E. (1999). Provision of electronic banking in the UK and the Republic of Ireland. International Journal of Bank Marketing, Volume 17, Number 2, pp. 72-82. 5. Fitzergelad K. (2004). An Investigation into Peoples Perceptions of Online Banking. Available at: http://staffweb.itsligo.ie/staff/eward/ebus%200203/Discussion%20topics/Online%20Banking 6. Fox S. and Beier J. (2006). Online banking 2006: Surfing to the bank, Pew Internet & American Life Project. Available at: www.pewinternet.org/Reports/2006/Online-Banking2006.aspx 7. Hill K. (2004). Study: Demographics Vs Marketing. CRM daily, Available at :http://www.crmdaily.newsfactor.com/story.xhtml?story_titleWhich_Comes_First__Demogr aphics_or_Marketing_&story_id=23250&category=lylt
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Statement 5 Statement 6 Statement 7

Variable 5 Variable 6 Variable 7

E-Banking Procedure (EBP)

Statement 8 Statement 9 Statement 10

Variable 8 Variable 9 Variable 10

Saves Time (ST) Saves Cost (SC) Reduce Dependency (RD)

.751 231.498 45 .000

.632 .463 .518 .551 .548 .623

Extraction .409 .575 .572 .566

Variables Simple Operational (SO)

Factor Loadings .653 .503 .565 .612 .576

Authorized User (AU)

Factor Loadings .572 .623 .660 .589 .563

Independency Reduce Dependency (RD)

Independenc y SC AIP .270*

RD .220** .227* * .139*

.278* .208* .320*

.115* * .074 -.024 .150* -.188* -.116 .312** 1

.296* .293* .349*

.166* .278** .252*

-.013 .466** .315** .197**

Statement 6 Statement 7 Statement 8

Education/Knowledge (E/K) Problem Solution Menu (PSM) Trust (T)

I trust my e-banking websites

81.373 88.480 94.835 100.000

Factor Name Personal Memorizing

Variables Password Remembrance (PR) Password Blockage (PB) Education/Knowledge (E/K)

Factor Loadings .521 .513 .556

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-.013 .466 .315 .197**