BENEFITS OF INTERNET BANKING IN PUBLIC SECTOR: A REVIEW Siti Nurshahirah Mohd Sidek and Wan Nurul Hafizah Wan Mohd Noor Faculty of Information Management, Universiti Teknologi MARA (UiTM) Puncak Perdana Campus, UiTM Selangor, Malaysia Abstract Internet banking is payment system service that provided by bank to user to make it easier access the online system through their mobile phone. The research aims is to introduce a benefits of internet banking among public sector nowadays and how they would like to interact with internet banking on their smartphones and other mobile devices application from time to time. This paper proposes the usage of the internet banking among public sector. Besides that, this paper also covers the effected of traditional or virtual ways of the internet banking and the ways to safety in the internet banking. Keywords: Internet banking, Online internet banking, Public sector, Transaction 1. Introduction Nowadays, the approach of internet banking is widely used in public sector because it may be enable users to access at anytime and anywhere and its can give many benefits to users. Next, it s also because everything has been transformed into electronic devices and easily them to access it using application that provided by bank. Internet Banking or also known as Online Banking can be identifies to the banking services provided by banks by using devices application that can connect through the internet. This is because technology make it easier to many users access this internet banking faster and greater by simply logging their account using bank application (Patsiotis, 2012). It s can be accessed by users through all kinds of gadgets that they had such as smartphones, laptops, tablets and other devices that help them to access it. The internet banking is the commonly used by users because it s offers users faster and easy in access their financial account on their smartphones and other mobile devices that they can used it from anywhere either from office or home without physically going to the bank to use it on that time (Bazooband, 2016). Meanwhile, internet banking also can be used at any time because the application that provided can be access by users anytime at the whole day (Saeidipour and Ranjbar, 2013). It s even in night, public holiday or when the bank is closed but users still can access it easily as long as has the internet connection. According to Pauline (2017) with the growing technology now, it s can allow banks to serve their services better and can improve their customers satisfaction because people can access anywhere and anytime that they want using the application 1
that provided by banks to access the internet banking service. The most important it s can help people do their work faster by using this application. In a simple word, users can access this online banking easily through the application that had provided by bank. Users also can manage their accounts through internet banking that they want. Many people nowadays are choosing to use this internet banking. Because of that, internet banking has becomes more important to people around the world. Simply with a click on their device application, users can handle their accounts faster than before through internet banking. The Internet Banking can be called as the online banking, electronic payment, and also as an electronic banking (Chavan, 2013; Ozuru et al., 2010). The electronic payment can be describes as a meaning whereby the business banking that are transacted through the automated process and also electronic devices like a personal computer, telephones, and also fax machines. According to Chavan, 2013; Chaffey et al., 2006) the Internet, e-mail, e-books, databases and also mobile phones is the ways to the electronic communications when someone to use the Internet banking. The people must be using that in the right ways because it s very important thing in their life. Based on this research of benefits of internet banking in public sector, there have some issues that can be related which is the users should know the ways to use the online banking so that they not to outdate because people nowadays are using a simple ways to make something and to make it more faster and quickly such as use any devices to access their accounts. According to Raza (2015), the users satisfaction as a measurement the achievement of organisation s product or the services in the correspondence to the need and requirement of the users. However, the most important is the people must have their internet connection to access this application. As we know, money is very important for the people but they must make sure that they use that in the right ways. The internet banking is has to emerged as one of the most remarkable and also the profitable electronic commerce application over the last decade but every people must be aware when to using the online banking and also must to refer from the bank if anything happened to their current account. The aim of this study is to evaluate how information literacy effect on student s performance and lifelong learning. 2. Literature Review The analysis of this chapter will discuss about the comparison between the past research and our research. Through the comparison that it will explain the usage of the internet banking in public sector, the effected of traditional or virtual ways of the internet banking and the ways to safety in the internet banking. From the entire article that we found to complete our literature review for our research, we had come out with three sections which are the usage, effectiveness and safety. After reviewing the entire article, we found that many the usage of internet banking among public sector. According to Rajarathinam (2013) that argue the user of typical internet banking has been identified as a high people that involved with the good educations and also the skill that have the middle classes because they need this application to make their work faster without go anywhere. They only can access this 2
application at anywhere and anytime they want as long they has their connection on their devices. Besides that, the users used this application as their choice because it s easy and can save their time and effort. According to Moreira (2012) that many the professional mentioned about the overcome consumer concerns about the safety of Internet, privacy and also the trusted when used it. However, with using this application it can make easy users access everywhere when they needed. The second point that we found is the effectiveness of traditional or virtual ways of internet banking. According to Mittal (2016) the traditional process is more difficult to people compare with online because when they using the difficult ways, it s can wasting people time to go to the banks and meet their staff but when people use the online banking application, they can use that anywhere and anytime that they want to use as long as they has internet connection while using the services. According to Hamid (2017) mentioned that financial nowadays can be seen as important things to public sector. Because of that, many people using the online banking to make them easier, speed, accuracy and also save their time on that day. Last but not least that we found in this article is the ways to safety of internet banking. According to Mittal (2016) the users should has their own password of online banking application but they must remember to change the password every four months and also cannot save the password anywhere that easier people know. According to Popoola (2015), the users also should be aware from the e-mail that received in their mobile phone or computer because through this, the hackers can send the e-mail to request personal information like the password of ATM card and many more to access users account easily. So, people must always take care their account and regularly check their accounts. They must make sure that logout their account when they are finished used it. According to Maditinos (2013) the internet banking has the potential for the important roles in the financial of successful especially when the crisis global financial. Table 1. Show that analysis of internet banking based on usage, effectiveness and safety. No Author Usage Effectiveness Safety 1 Rajarathinam, & Mangalam, (2013) / 2 Moreira et al. (2012). / 3 Chavan, (2013). / 4 Hamid et al. (2017). / 5 Sharna & Sharma (2011). / 6 Mittal & Agrawal(2016). / 7 Papoola & Arshad (2015). / 8 Saeidipour et al. (2013). / 9 Raza & Hassan (2015). / 10 Maditinos et al.(2013). / 3
3. Research Framework Research framework is most important thing to guiding the all of the research processes. They are constructing to explain, forecast and also phenomena for immediately the relationship, event, or the attitude. From the research, we come out with the research framework. There are two variable which are independent and dependent variable. This framework also come out with the usage of using internet banking, the effected of using traditional in the internet banking, and the ways to safety in the internet banking. Independe nt variable (IV) Usage Effectiveness Benefits of Internet Banking In Public Sector Safety Dependent variable (DV) Figure 1. Theoretical framework. 4. Conclusions In this paper, we can describe that the benefit of internet banking among public sector get more easier to people in the world manage their account by using their smartphones and other devices that they had through online. Nowadays, the growing technology has change the world with and can help person to make it faster when they want to do it something through online by using internet that they had. Internet banking or online banking is very efficiency and effectiveness to who are uses this application because this online banking can make the process faster and easier to every people. For example, the person do not need to go the banks to make transaction to other people, they only can use this application that had by using the internet. However, the users must make sure they know the procedures and ways while using this application. From the literature review, we know that the benefit of using the internet banking among 4
public sector are crucial to them nowadays to help them do their online transaction or anything that related with bank that can be used anywhere and anytime through internet and they do not need to go to the branches or banks to make any transaction. It s can help people do their work easily when using this application that provided by bank. References Bazooband, A & Baghbanian. (2016). The survey on e-banking strategy in melli bank & it s impact on bank s penetration in the market. Arabian Journal of Business and Management Review. 6 (1), 36-42. Chaffey, D; Mayer, R; Johnson, K & Ellis Chadwick, F. (2006). Internet Marketing: Strategy, Implementation and Practice, 8-10. Chavan, J. (2013). Internet banking- benefits and challenges in an emerging economy. International Journal of Research in Business Management. 1 (1), 19-26. Hamid, A Wahab, A & Haron, R. (2017). Efficiency of Qatari banking industry: an empirical investigation. International Journal of Bank Marketing, 35 (2), 298-318 Maditinos, D, Chatzoudes D & Sarigiannidis, L. (2013). An examination of the critical factors affecting consumer acceptance of online banking: A focus on the dimensions of risk. Journal of Systems and Information Technology, 15 (1), 97-116 Mittal, D & Agrawal, S, R. (2016). The effects of traditional practices on modern banking system. International Journal of Bank Marketing, 34 (4), 476-500. Moreira, F., Rocha, P., & Almeida, F. (2012). The Use of Internet Banking Among Portuguese College Students. Journal of Internet Banking and Commerce, 17 (2), 1 13. Ozuru, H. N; Chikwe, J. E & Uduma I. (2010). The use of Traditional payments and electronic payments systems in Nigeria: A discourse. Proceedings of the 11th Annual Conference of International Academy of African Business and Development. Papoola, N, F & Arshad M, R. (2015) Strategic Approach to Build Customers Trust in Adoption of Internet Banking in Nigeria. Journal of Internet Banking and Commerce, 20 (1), 1-15 Patsiotis, A., Hughes, T. & Webber, D. J. (2012) Adopters and non-adopters of Internet banking: A segmentation study. International Journal of Bank Marketing, 30 (1), 20 42. Pauline, W.J & W, Fred. (2017). Banking system trust, bank trust, and bank loyalty. International Journal of Bank Marketing, 35 (1), 97-111 Rajarathinam, V & Mangalam, C. (2013). Internet Banking Users s Competence and its Influence on Usage Satisfaction A View from India. Journal of Internet Banking and Commerce, 18 (3), 1 13. 5
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