Online Banking - Trust and Security
Online Banking Systems - Security and Customer Trust Abstract
Introduction to Online banking has revolutionized the way people and business used to do banking. Internet and mobile equipments have made possible for the customers to do transactions and other banking related operations, anytime, anywhere. This paper is a research done on the customer issues related to internet banking. The first part of the essay talks about the need of internet banking and the benefits both organization and the customer gain from the service. Then it talks about the common types of risks associated with the internet banking. The final part of the essay concentrates on the customer trust and worries regarding the online banking and the general security steps to be taken to protect the system and the customer trust.
Keywords: Internet/Online Banking, Customer Trust, Security, Internet
1. Introduction
Introduction to Online banking has revolutionized the way people and business used to do banking. Online banking became an easier and comfortable method to carry out transactions as compared to the traditional banking practices. Moreover introduction to mobile banking has made possible for the customers to do transactions and other banking related operations, with the help of the mobile equipments, round the clock. However, the medium chosen for online banking is the internet and all the vulnerabilities of the internet apply for the online banking systems.
Even though banks providing internet banking facilities claims to have secured online systems, the customer concerns on security is still an open issue. European Internet Security Survey conducted by Entrust (2005) reports that 83% of individuals in the UK, 72% in Germany and 80% of North Americans are concerned with identity theft attacks on their online banking accounts. Moreover, the “Get Safe Online survey” reports that despite of using various virus protection software and PC security suite, 21% of surveyed online
Introduction to Online banking has revolutionized the way people and business used to do banking. Internet and mobile equipments have made possible for the customers to do transactions and other banking related operations, anytime, anywhere. This paper is a research done on the customer issues related to internet banking. The first part of the essay talks about the need of internet banking and the benefits both organization and the customer gain from the service. Then it talks about the common types of risks associated with the internet banking. The final part of the essay concentrates on the customer trust and worries regarding the online banking and the general security steps to be taken to protect the system and the customer trust.
Keywords: Internet/Online Banking, Customer Trust, Security, Internet
1. Introduction
Introduction to Online banking has revolutionized the way people and business used to do banking. Online banking became an easier and comfortable method to carry out transactions as compared to the traditional banking practices. Moreover introduction to mobile banking has made possible for the customers to do transactions and other banking related operations, with the help of the mobile equipments, round the clock. However, the medium chosen for online banking is the internet and all the vulnerabilities of the internet apply for the online banking systems.
Even though banks providing internet banking facilities claims to have secured online systems, the customer concerns on security is still an open issue. European Internet Security Survey conducted by Entrust (2005) reports that 83% of individuals in the UK, 72% in Germany and 80% of North Americans are concerned with identity theft attacks on their online banking accounts. Moreover, the “Get Safe Online survey” reports that despite of using various virus protection software and PC security suite, 21% of surveyed online
References: GetSafeOnline, (2009), "Unsuspecting job hunters launder millions for online criminals", Available: http://www.getsafeonline.org/nqcontent.cfm?a_id=1515 ,Accessed on 25/01/2010 Grabner-Kräuter, S., and Faullant, R Management-Hub, "Features & Advantages of Online Banking", Available: http://www.management-hub.com/cm-online-banking.html , Accessed : 25/01/2010 Meyer, T.(2006), “Online banking Rotchanakitumnuai, S. and Speece, M. (2003), “Barriers to internet banking adoption: a qualitative study among corporate customers in Thailand”, International Journal of Bank Marketing, Vol.21 No.6, pp.312-23. Russell, M., (2007), “Online Banking: Advantages and Disadvantages.” Available: http://ezinearticles.com/?Online-Banking:-Advantages-and-Disadvantages&id=445102 Accessed on : 26/01/2010. Srivastava , S., (2009), “Online Banking Problems”, Available : http://www.buzzle.com/articles/online-banking-problems.html, Accessed on 24/01/2010 Suh, B., Han, I Tubin, G., (2005), "The Sky IS Falling: The Need for Stronger Consumer Online Banking Authentication", Tower Group, Journal Reference # V42:27N