Electronic banking in Cyprus from customer's point of view

Abstract

Electronic banking services are being used with an increasing frequency and are gaining more and more popularity in most countries, including Cyprus. Previous researches have confirmed the importance of such services for both Banks and customers. However, electronic banking is still considered as an alternative channel for banking operations concerning customers, leaving space for improvement on more active users. This study aims to identify and to understand the factors that influence the attitude of bank customers toward electronic banking services and subsequently the adoption and use of such services, throughout their experiences, concerns and needs. The primary data were collected from questionnaire interview forms, which were randomly distributed to 90 customers of all banks in Cyprus. The main findings of the study are that: we are still at the beginning of the penetration with the main factors of choosing e-banking services the 24h access to accounts, the time saving and the convenience and the main disadvantages of electronic banking, the security issue and the limited services. From the results there is no identification concerning gender and adoption rate, while there is insufficient identification between some specific characteristics of the personality and attitude towards lifesuch as to be risk taker and adoption rate of electronic banking system. On the contrary there is identification between age and adoption rate and between (un)employment and adoption rate of electronic banking system. Quality service, quick service and security affect customers’ decisions, while human contact is considered to be important, reflecting Cypriot’s culture. The majority of active users are satisfied users, who consider the service to be reliable and encourage friends and relatives to do business through online banking system, but they need to be sensitized on online issue threats.