Online banking: Factors that affect or influence internet banking, consumer perceived risk and attitude

Abstract

Our world is daily swelled in continuously changing data and the development of technology seems to be endless. Internet invented about 1983 and it had a rapid growth especially on the last decade and it affected any type of organisation. This dissertation focuses on the banking sector and especially on the use of online banking through Cypriots and the risks they face, or they are aware of. Risks are faced also by Financial Institutions which provide their customers with online services.

This empirical research is based on Questionnaire-survey that was designed based on previous investigations regarding factors that influence internet banking. The results of scientific studies present that customers under certain conditions are receptive to the adoption of internet banking. Factors such as age and purchase of products through internet affect the usage or the adoption of electronic banking. Other features like education, safety or privacy influence the intention of usage of electronic banking. Finally, features like comfort, convenience, technology familiarity and effort made have significant impact on perceived performance regarding the usage of internet banking.

This study showed that the use of internet banking services in Cyprus is still below the European average but has an upward trend. The findings of this dissertation have practical implications for the banking industry in order to understand the Cypriot customers better and improve their services according to Cypriots characteristics and preferences.