Study on the consumer perception of security in internet banking

Abstract

Traditional Banking with its workforce intensive structure relied heavily on brick and mortar branches and personnel to service clients. This traditional form of Banking has seen a transformative change with the internet taking over and many of the banking services being available to the customers online. With advancement in technology and growth of internet connectivity, it is now possible for consumers to conduct most of the regular financial transactions from anywhere in the world securely, by using Internet Banking Websites. Banks are taking advantage of this transformation by making their websites effective and user friendly to encourage users to adopt internet banking for a lot of banking transactions as opposed to banking at the physical branches. Through internet banking, banks can reduce labour costs and at the same time provide convenience, higher consistency and accessibility benefits to customers. Some banks in India have even introduced nominal charges for banking transactions done at the branch as opposed to net banking to encourage consumers towards Internet Banking. There is also general trend where the government is laying a greater emphasis to move to digitize banking and financial transactions. Digitizing transactions, including usage of internet Banking helps bringing out greater transparency and allows for modern forms of commerce and trade through e-payments and ease of transfer of funds. The demonetization move by the government has also provided a greater impetus to consumers to install and use digital forms of banking, with payments wallets, PayTm seeing a great surge in usage in Retail.