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ELECTRONIC BANKING CHALLENGES IN INDIA: AN EMPIRICAL
INVESTIGATION
Majid Karimzadeh*(Correspondent Author)
Economics department, Aligarh Muslim University, Aligarh, UP, India.
Postal address: 4/1121, Sir Syed Nagar, Aligarh, 202002, Uttar pradash, India.
Dastgir Alam
Economics department, Aligarh Muslim University, Aligarh, UP ,India.
Abstract
Increased competition, changing business environments, globalization and the advancement of Information and
Communications Technology are the important factors that have forced Banking and Financial services to
change. Demand for financial services is changing rapidly and customer behavior regarding these services is
also adapting rapidly. Therefore, with the passing of the traditional banking sector to electronic banking, new
strategies have become necessary in order to attract and retain existing customers. Despite enormous pressures
for change and investment in Information Technology in the Banking field, if these investments do not work in
accordance with the principles of investment, they will fail. This investigation will review available sources and
studies conducted in this field, and seek to find out the main factors and challenges posed in the development of
electronic banking after a relatively long period of adoption in India. This paper provides a possible six factor
model centered upon the following: infrastructure, knowledge, legal-security, socio-cultural, economic and
management and banking issues. The results of the study indicate that legal and security, socio-cultural, and
management and banking issues are accepted as challenges for the development of e-banking but that there is
less awareness regarding new technologies and unsuitable software which are ranked respectively as the highest
and lowest obstacles in India.
Keywords: E-banking, challenges and obstacles, development and ranking.
1. Introduction
The nearly universal connectivity which the Internet offers has made IT an invaluable business tool. These
developments have created a new type of economy, which may be called the ‘digital economy ‘. This fast
emerging economy is bringing with it rapidly changing technologies, increasing knowledge intensity in all areas
of business and creating virtual supply chains and new forms of businesses and service delivery channels such
as e-banking [16].
The term “e-banking” has been used in literature in many different ways, partially because electronic banking
refers to several types of services through which banks’ customers can request information and carry out most
retail banking services via the internet, television or mobile phones. Generally speaking, E-banking means
providing banking products and services directly to customers through electronic, interactive communication
channels.
However, a more comprehensive and common definition for e-banking comes from the Basel Committee Report
on banking supervision. The Basel Committee defines e-banking as “. The provision of retail and small value
banking products and services through electronic channels , such products and services can include deposit
taking, lending, account management ,the provision of financial advice, electronic bill payment products and
services such as electronic money [5].
Banking institutions have become an essential component of most economies whether they are described as
“engines for economic growth” or as acting as “conduits towards promoting economic growth” [17]. There are
not many inventions that have changed the business of banking as quickly as the e-banking revolution. World
over banks are reorienting their business strategies towards new opportunities offered by e-banking. E-banking
has enabled banks to scale borders, change strategic behavior and thus bring about new possibilities [12].
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E-banking and e-commerce are closely related systems with huge interactions and their development needs
social identity, a reliable law system, well-built network, and powerful government support. Since there can be
many potential problems, it is necessary to develop a sound atmosphere for e-banking. First, strengthen the
construction of the network infrastructure; second, improve the risk prevention mechanism, and speed up the
formulation of e-commerce-related standards and laws; third, boost the information development; fourth,
nurture more practitioners in this area and finally strengthen communications with government for policy
support [21].
The purpose of this research is to study and understand the challenges and obstacles which are affecting the
development of e-banking in India and the ranking of them. This article also provides comparisons between the
views of different groups of customers and staff regarding e-banking challenges. The findings of this research
would be useful for policy makers and bank managers in the formulation of best practice in order to promote ebanking and also aid researchers in studies related to e-banking.
2. Literature review
E-commerce literature has studied the phenomenon of e-banking from different perspectives. Some research has
analyzed the adoption and growth of e-banking, whilst others describe the challenges and benefits to be gained
from e-banking services as far as the organization is concerned.
For the past two decades, the banking sector has chosen a new service channel based on the progress of
information technology - the Internet- to respond to the changes in customer preferences and needs, increased
competition from non-banks, changes in demographic and social trends, and government deregulations of the
financial service sector [6]. The adoption of new IT applications is influenced largely by factors related to
overall organizational attitudes and culture as well technical and infrastructural elements [15].
Aladwani [2] conducted research about the drivers and challenges of online banking; the results of the study
show that top bank managers are in support of a lack of internet specialists and changes in Internet technology
being the principle issues relevant to online banking development whereas IT managers mentioned time and
budget constraints and also immature Internet technology. The study also indicates that according to general and
IT managers’ technical obstacles are the most important challenge for the development of e-banking. Customers
however mentioned internet security, online banking regulations and customers’ privacy as the most important
future challenges of e-banking in Kuwait.
Sathye [18] argued that, in the context of Internet banking, two kinds of price were accounted for; the normal
costs associated with Internet activities, and the bank costs and charges which had a negative effect on the
adoption of electronic banking everywhere. Rasoulian and Safari [14] carried out research concerning reasons as
to why there was a lack of e-banking achievement; the result of the first chapter of their study showed the
importance of Internet use, frameworks and encouraging policies to impress beneficiaries to use electronic
banking. The second part introduced cultural elements as the most important challenge followed on by financial
elements (the cost of the Internet and commissions) as the second influencing factor. The significance of
technical elements is fading away according to their study due to improvements in the banking system. In
addition their study highlighted other parameters such as management obstacles as also playing an important
role in electronic banking.
A study carried out by Daniel [7] concluded that the price of electronic services, increased competition due to
new entrants, and trust can be future challenges for banking systems considering e-banking. Additional research
was conducted by Khorshid and Ghaneh [10] and in their article on ranking the challenges of e-banking
identified for managers of banks; customers’ privacy, security, and customers’ trust as issues arising. For
customers; reputation of bank, regulations and laws, and easy accessibility were seen as the main challenges for
the development of e-banking.
Amadeh and Jafarpour [4] studied four groups of obstacles in a research titled “The study of obstacles and
strategies to improve electronic banking in the perspective of Iran 1404.” These obstacles included sociocultural, managerial, financial and technical causes. The first two are accepted and the second two are rejected at
the end of the study. Vaithianathan, S. [21] in his study comments that due to the high Internet penetration
among developed countries’ populations, these countries are able to deploy electronic commerce to their
advantage, whereas developing countries are still trailing far behind. Apart from this, other issues such as lack
of technology infrastructure, lack of awareness, lack of skilled human resources, and the lack of government
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initiatives, including various economic and social factors are cited as hurdles that prevent pervasive e-commerce
adoption in developing countries.
E-banking challenges and opportunities in Greece were researched by Angelakopoulos and Mihiotis [1]. The
main findings demonstrate that banks expand to e-banking services in order to remain competitive, to keep track
with technological developments and to benefit from the lower cost of e-banking transactions. The major
problems they face are the low response rate from customers and the implementation of security and data
protection mechanisms. The relatively low Internet usage, the non-familiarity with technologically advanced
devices and problems regarding security and privacy are the main factors that have a negative influence on the
adoption of e-banking services by customers in Greece.
3. Conceptual model and Hypotheses
A qualitative assessment, using interviews with IT professionals of banks was performed and with the help and
review of available studies in this field we conclude that effective factors for implementation and development
of e-banking can be divided into two broad groups including soft and hard factors. Soft factors can be; culture,
awareness, job and human relations, trust, resistance, coordination, and decision making etc. Hard factors
include supporting soft factors with suitable technological and economic infrastructures, finance of network
development and the preparation of software and hardware required of e-banking etc. Therefore, from all related
factors we conclude that the barriers and challenges of electronic banking in India can be categorized into six
main groups, including infrastructural barriers, knowledge barriers, legal and security issues, socio-cultural
barriers, economic factors, and management and banking issues.
After a review of concepts and the relevant literature pertaining to e-banking, research has been identified and
organized following a conceptual model that includes all the different barriers to e-banking and has arranged
these into six categories.
Table 1 Challenges and indicators of e-banking
The Hypotheses in this study include six assumptions:
1.
2.
3.
4.
5.
6.
Infrastructural barriers are one of the challenges for implementation and development of e-banking in
India.
Knowledge barriers are one of the challenges for implementation and development of e-banking in
India.
Legal and security issues are one of the challenges for implementation and development of e-banking
in India.
Social and cultural barriers are one of the challenges for implementation and development of e-banking
in India.
Economic factors are one of the challenges for implementation and development of e-banking in India.
Management and banking issues are one of the challenges for implementation and development of ebanking in India.
4. Methodology and Research Design
One of the primary concerns of this paper is to identify the important parameters affecting the development of ebanking. To determine the dimensions of e-banking and its challenges, a questionnaire survey was conducted.
The questionnaire consists of two parts. The first part comprises 6 questions concerning the demographic profile
of the respondents and the second part consists of 36 questions in seven specific sections related to different
challenges in order to explore the respondent’s perceptions about the challenges and obstacles for development
of e-banking in India.
The questionnaire was first pre-tested amongst bank specialists so as to provide commentary on the relevance
and wording of questionnaires’ items, length of survey and time taken to complete questions. The population of
interest is defined as two groups including bank staff and electronic banking customers and they have been
asked for their opinions. In total 200 questionnaires were filled out. The Cronbach’s Alpha value was calculated
for these questionnaires and it was equal to 0.809. Appropriate statistical procedures for description and
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inference were used. The correlation coefficients were calculated to evaluate the relationship between variables.
Independent sample t- tests and one way ANOVA and post-hoc tests have been applied to compare the mean
scores of different groups of educational attainment and job experience. A Friedman test was undertaken for
ranking purposes.
5. Results and Discussion
In order to find out the challenges of e-banking development, the hypotheses of the study are tested as follow:
Table 2 Correlation analysis of challenges and e-banking development
First hypothesis: Infrastructural barriers are one of the challenges for implementation and development of ebanking in India.
Table 2 indicates that there is no correlation between infrastructural barriers and e-banking development.
Therefore infrastructural barriers are not currently a challenge for the development of e-banking in India.
Table 3 Impact of infrastructural barriers on e-banking according to variables
In order to find out whether there is a difference of views between banks’ employees regarding the different
challenges of e-banking, an ANOVA test has been used to show whether the level of education and age have
any significant impact on the views of banks’ employees in India due to general perceptions that old and not so
well educated employees have negative observations about e-banking services. Table 3 displays the different
groups whom were compared with regard to infrastructural barriers, the results showed there is a meaningful
significant difference at p< 0.05 between staff views of different job experiences. Staffs that have experienced
between 10-20 jobs have a greater belief in infrastructural barriers affecting e-banking development and
respondents with different educational levels and positions hold a similar view.
Second hypothesis: Knowledge barriers are one of the challenges for implementation and development of ebanking in India.
Table 2 indicates that there is no correlation between knowledge barriers and e-banking development.
Therefore, knowledge barriers are not a challenge for development of e-banking in India now.
Table 4 Impact of knowledge barriers on e-banking according to variables
Table 4 shows that there is no statistically significant difference at the p<0.05 level for the three groups on the
basis of education therefore; respondents with different education levels have similar views regarding
knowledge barriers. The Table also highlights that respondents with different job experiences and positions
believe knowledge barriers have an identical impact on e-banking development.
Third hypothesis: Legal and security barriers are one of the challenges for implementation and development of
e-banking in India.
Table 2 indicates there is a negative correlation between legal and security barriers and e-banking development.
It means a null hypothesis is not accepted and legal and security barriers are a challenge for implementation and
development of e-banking in India.
Table 5 Impact of Legal and Security barriers on e-banking according to variables
Table 5 reveals that according to the F-value and significance level (3.030, 0.041) there is a statistically
significant difference at the p<0.05 level for the three groups of job experience, therefore the Post-hoc test
shows staff with less than 10 years’ experience, more than others believe that legal and regulation issues have a
greater impact on the development of e-banking. In addition the t-value obtained together with the level of
significance (0.034) indicates that the mean difference between the two groups is significant. Therefore, there is
a meaningful significant difference between respondent’s opinions with regards to legal and security barriers
and customers believe legal and security issues have more impact on e-banking development.
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Fourth hypothesis: Socio-cultural barriers are one of the challenges for implementation and development of ebanking in India.
Table 2 indicates there is negative correlation between socio-cultural barriers and e-banking development in
India. It means socio-cultural barriers are a challenge for the implementation and development of e-banking in
India.
Table 6 Impact of socio-cultural barriers on e-banking according to variables
From Table 6 it is clear people with different educational levels have similar views regarding socio-cultural
barriers but the F-Value and significance level (2.894, 0.050) show that respondents with different experiences
have differing views regarding socio-cultural barriers. The Post-hoc test shows staffs with less than 10 years’
experience believe socio-cultural barriers have a greater impact on e-banking development in India and also
from the table it is clear that bank staff believe socio-cultural barriers have more impact on either e-banking
development or under development.
Fifth hypothesis: Economic barriers are one of the challenges for implementation and development of e-banking
in India.
As can be seen from table 2, there is no correlation between economic barriers and e-banking development.
Therefore, economic factors are not a challenge for the implementation and development of e-banking in India.
Table 7 Impact of Economic barriers on the development of e-banking according to variables
Table 7 reveals that there is no significant difference between opinions of respondents regarding the effects of
economic barriers on e-banking development.
Sixth hypothesis: Management and banking issues are one of the challenges for implementation and
development of e-banking in India.
Table 2 indicates there is negative correlation between management-banking issues and e-banking development
and therefore management-banking is a challenge for the development of e-banking.
Table 8 Impact of management-banking barriers on the development of e-banking according to variables
Table 8 indicates that the obtained value of t and level of significance (-2.215, 0.028) show that the mean
difference between the two groups is significant. Therefore, there is an important difference between
respondent’s opinions regarding management and banking barriers. Customers believe this obstacle has more
impact on e-banking than staff and also the result showed respondents with different education levels and job
experience hold similar views.
Table 9 Ranking of e-banking barriers
Successful growth and development of e-banking depends on identification of challenges and obstacles. Table 9
summarizes the ranking of e-banking challenges. Less awareness regarding new technologies and their benefits,
illiteracy & computer illiteracy, and people wanting to have bank receipts are top challenges according to banks’
employees. Unlike bank staff, customers view less awareness, limited trained human resources, and low levels
of income as important challenges for the development of e-banking.
Managers and bank clerks are usually more aware of outsourcing costs as one of the challenges. This
interpretation is consistent with banks’ employees rating of outsourcing as ranking fifth in importance. In
addition, unlike banks’ managers and clerks, customers view the cost of maintenance and upgrading of web and
networks as a less important challenge as this was ranked as twenty third in challenges with a mean of 18.46 and
13.53 respectively.
Banks’ employees and customers perceive a low level of income per person and the need for heavy investment
regarding technologies as a very important challenge. The economic circumstances of people and banks are of
crucial importance for the use and implementation of new technologies.
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From the above table it also becomes clear that law and regulation issues are still important for the better
operation of e-banking according to both staff and bank customers. The resistance of employees and managers
to new technologies is ranked lowest by staff and software is not perceived as a suitable indicator for customers
(10.81 and 9.91).
The above table also reveals the overall ranking of staff and customers. Bank staff and customers in the study
believed that less awareness and familiarity regarding new technologies and their benefits, illiteracy, and low
levels of computer literacy and limited trained human resources are particularly important challenges for the
development of e-banking in India. These findings are somewhat expected. Social and cultural barriers in some
countries may exist to deter the acceptance and operation of e-commerce and e-banking as a way of doing
business. In countries like India, shopping and bank visits are a social activity and personal face-to-face contact
with sellers and bankers is an important part of the shopping and business experience. Distrust of what
businesses do with personal and credit card information is an ecommerce issue in any country, especially in
countries where there may be good justification for such distrust, it could therefore become a serious obstacle to
e-banking growth in India. Also the acute shortage of practical information about advantages of e-banking
services and e-banking specialists in developing countries makes this as a major development challenge for ebanking.
From the table it is clear that legal and security issues, lack and limitation of regulation and law, increased
potential for fraud, denial of e-documents in courts, and the lack of a strong trust environment are very
important. Lack of security and distrust of customers are very destructive for e-banking development and
security concerns is probably one of the most challenging topics facing organizations interested in doing
business over the Internet. This result is consistent with the findings reported earlier by other scholars in India
(Dixit and Datt, [8]; khan et al, [11]; Sandeep. S [20]; Gupta [9]; Srivastava, [19]). Trust is a catalyst for human
cooperation. It allows people to interact spontaneously and helps the economy to operate smoothly. Lack of trust
on the other hand is like sand in the social machinery. It makes us waste time and resources on protecting
ourselves against possible harm and thereby clogs up the economy [3]. Management failure to employ the latest
security features will lead to customer distrust and damage of the banks’ reputation.
Change and the shift of managers and decision makers, fee charges and unsuitable software are considered as
the least important obstacles in India. Results of this study are not in agreement with the result of Amadeh and
Jafarpor [4] whom argued that change and shift of managers and decision makers is one of the main obstacles
for development of e-banking in Iran and limited expertise, human resources, and outsourcing are the least
important obstacles .An interpretation of these results can be that the change and shift of decision makers is not
common in India and the Reserve Bank of India is directing the banking system with new and upgraded
guidelines and rules. In addition e-banking fees are quite low in India therefore cannot be an important obstacle.
The Software Packages for Banking Applications in India had their beginnings in the middle of the 1980s, when
the Banks spurred on by RBI and the Rangarajan Committee Report, started computerizing branches in a limited
manner. Nowadays made-in-India financial software solutions are making waves across the globe and this result
was expected.
6. Conclusion and Recommendations
The objective of this study was to identify the challenges of e-banking from the perspective of employees and
bank customers. The present investigation has shown that legal and security issues, socio-cultural barriers, and
management-banking issues are accepted as challenges for e-banking development in India. Socio-cultural
barriers rated as the most important challenge followed by legal, security issues and Management-banking.
Knowledge, economic and infrastructural barriers are the least important according to both staff and customers.
Ranking of indicators in table 8 highlights that less awareness regarding new technologies ranked as the most
important and unsuitable software rated as the least important barrier among indicators.
According to the study staff with 10-20 years’ experience, more than others believed infrastructural barriers
have a negative impact on e-banking development and staff with less than 10 years’ experience, more than
others believed that legal and regulation issues and socio-cultural issues have an inappropriate impact on ebanking development. In addition staff believed caring about socio-cultural issues has a more effective impact
on e-banking development. Customers more than staff believed that legal and security barriers and management
and banking issues have more effect on e-banking development. Therefore, we can highlight for customers
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security is still a big concern for usage of e-banking services and the view of young and educated staff regarding
e-banking is more supportive in India.
The results of the study shed light on some important issues related to specification of challenges for
development of e-banking that have not been addressed by previous studies. First, in terms of theory and
literature this study attempts to provide a model with six factors which almost includes all obstacles and
challenges and can be useful for further researches.
Secondly although previous studies focused on factors influencing adoption of e-banking (online-banking) the
present study investigated the status of e-banking after adoption of e-banking by almost all India’s banks. This
study finds out that still after more than one decade of different kinds of e-services being adopted by banks in
India, some aspects of socio-cultural issues do not support e-banking and it is because of a lack of confidence in
technology and an online culture. Since the foundation of e-banking is based on such premises, some of these
local socio-cultural aspects do pose significant challenges for e-banking development.
This study suggests that decision makers should consider focusing on the trust, awareness, and confidence of
users by enhancing security features, utilizing proper e-legislation, and the provision of digital receipts or a
guarantee for every transaction in order to inspire greater confidence in users of such services and promote a
culture of e-banking usage across India.
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Annexure
Table 1 Challenges and indicators of e-banking
Challenge
Indicator
Weak Telecommunications (fiber optic, satellite
networks, and communication bandwidth)
Software available in the country is not suitable
Infrastructural
Hardware available is not sufficient in the country
(PC, ATM, POS, etc.)
Limited trained Human Resources
Improper use of Technology
Knowledge
Lack of Technological knowledge (managers,
employees, clients)
Flaws in design, implementation and monitoring of
Bank’s information system
Lack and limitation of regulation and law
Increased potential of fraud
Legal and security
Denial of e-documents in courts
Lacking or weak security measures
Lack of strong trust environment
Negative perception of e-banking services
Less awareness and familiarity regarding new
technologies and their benefits
Illiteracy
Charging fees is a reason for the loss of customers
Socio-cultural
Worry and perception of e-banking as a threat to the
bank’s employees
Some clients tend to go to a bank in order to
communicate with bank’s clerk
Tendency of people to hold cash component in India
People want to have a bank receipt
English Language barrier
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Need for heavy investment regarding new
infrastructures
Low level of Internet penetration due to high costs
Economic
Low level of average income per person and therefore,
low ability to achieve communication equipment in
India
Outsourcing
E-banking poses a number of managerial risks for
Bank management
Resistance of employees and managers regarding new
technologies
Management and Banking
Lack of adequate coordination, interaction and
cooperation between banks and other decision making
centers
Lack of long term strategic management
Change and shift of managers and decision makers is
an important obstacle
Table 2 Correlation analysis of challenges and e-banking development
Challenge
r
sig
Significant
level
Infrastructural
0.05
Knowledge
0.05
Legal-Security
0.05
Socio-Cultural
0.05
Economic
0.05
Management-
0.05
Banking
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Table 3 Impact of infrastructural barriers on e-banking according to variables
Variables
Frequency
Mean
SD
Diploma
2%
9.0000
0.81650
Education
Graduation
52.5%
9.6190
2.43524
level
Post-
45.5%
9.4835
2.54891
Test
Sig
F=0.173
0.842
F=3.654
0.030*
T=-1295
0.197
Test
Sig
F=0.377
0.686
F=0.270
0.764
T=0.082
0.935
graduation
Job
Less than10
25%
9.7900
2.66351
experience
10-20
6.5%
10.2308
2.65059
More than 20
18.5%
8.4324
2.44427
Staff
50%
9.3200
2.65101
Customer
50%
9.7700
2.24668
Position
*p<0.05
Table 4 Impact of knowledge barriers on e-banking according to variables
Variables
Frequency
Mean
SD
Diploma
2%
13.0000
1.41421
Educational
Graduation
52.5%
14.1238
2.72698
level
Post-
45.5%
14.0220
2.44485
graduation
Job
Less than 10
25%
14.0200
2.97945
experience
10-20
6.5%
14.6154
4.07305
More than 20
18.5%
13.9459
2.27237
Staff
50%
14.0700
2.88589
Customer
50%
14.0400
2.24247
Position
p<0.05
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Table 5 Impact of Legal and Security barriers on e-banking according to variables
Variables
Frequency
Mean
SD
Diploma
2%
17.2500
1.89297
Education
Graduation
52.5%
17.0000
3.29335
level
Post-
45.5%
16.5055
3.22235
Test
Sig
F=0.615
0.542
F=3.030
0.041*
T=-2.977
0.034*
Test
Sig
F=0.920
0.400
F=2.896
0.050*
T=-0.776
0.039*
graduation
Job
Less than 10
25%
16.9400
3.94560
experience
10-20
6.5%
16.9231
3.25222
More than 20
18.5%
15.8919
2.92293
Staff
50%
16.5500
3.51440
Customer
50%
17.0100
2.90070
Position
*p<0.05
Table 6 Impact of socio-cultural barriers on e-banking according to variables
variables
Frequency
Mean
SD
Diploma
2%
34.0000
2.70801
Education
Graduation
52%
31.6671
3.94391
level
Post-
45%
32.1868
4.30997
graduation
Job
Less than 10
25%
32.7400
4.91067
experience
10-20
6.5%
30.6923
3.63741
More than 20
18.5%
30.7027
3.34053
Staff
50%
31.7200
4.31834
Customer
50%
32.1700
3.87443
Position
*p<0.05
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Table 7 Impact of Economic barriers on the development of e-banking according to variables
Variable
Frequency
Mean
S.D
Test
Diploma
2%
15.0000
0.81650
Education
Graduation
52.5%
14.6952
2.55751
level
Post-
45.5%
14.3297
2.72867
Sig
F=0.539
0.584
F=0.826
0.441
T=-1.219
0.024
graduation
Job
Less than 10
25%
15.1000
2.77930
experience
10-20
6.5%
14.1538
2.44425
More than 20
18.5%
14.5135
2.89273
Staff
50%
14.7600
2.77842
Customer
50%
14.3100
2.43167
Position
p<0.05
Table 8 Impact of management-banking barriers on the development of e-banking according to variables
Variables
Frequency
Mean
S.D
Test
Sig
Diploma
2%
16.0000
2.94392
Education
Graduation
52.5%
16.1905
3.30819
level
Post-
45.5%
15.9011
2.78510
F=0.217
0.805
F=0.225
0.799
T=-2.215
0.028*
graduation
Job
Less than 10
25%
15.5600
3.65424
experience
10-20
6.5%
16.1538
3.41189
More than 20
18.5%
15.4054
3.23573
Staff
50%
15.5800
3.44709
Customer
50%
16.5300
2.55230
Position
*p<0.05
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Table 9 Ranking of e-banking barriers
Indicator
Challenge
Mean
Staff
Mean
Customer
Mean
Overall
rank
Less Awareness
Socio-cultural
21.45
1
19.26
1
20.35
1
Illiteracy and Computer
Socio-cultural
19.56
2
19.15
3
19.34
2
Knowledge
19.45
4
19.11
2
19.23
3
Banking Receipt
Socio-cultural
19.32
3
18.11
8
18.29
4
Average Income
Economical
18.46
6
17.77
4
18.17
5
Heavy Investment
Economical
18.24
7
17.31
5
17.97
6
Tendency to Hold cash
Socio-cultural
18.18
8
17.18
6
17.57
7
Lack of Technological
Knowledge
17.84
10
17.13
10
17.04
8
Contact with Bankers
Social-cultural
17.51
9
16.85
12
16.99
9
Negative Perception
Social-cultural
17.31
12
16.77
7
16.70
10
Weak Telecommunications
Infrastructural
16.23
13
16.48
9
16.23
11
Internet Penetration
Economical
16.22
11
16.46
13
16.16
12
Outsourcing
Economical
15.62
5
16.09
24
16.00
13
Lack and Limited
Legal-security
15.42
14
16.02
14
15.72
14
Legal- security
15.33
15
15.69
15
15.51
15
e-banking poses risks
Management-bank
15.32
19
15.51
11
15.44
16
Lack of strong trust
Legal-security
15.04
16
15.33
18
15.32
17
Legal-security
14.45
18
15.32
19
14.67
18
Improper use of technology
Knowledge
14.40
17
14.89
22
14.57
19
Hardware are not
Infrastructural
14.25
25
14.67
17
14.31
20
sufficient
Management-
14.10
20
14.43
23
14.15
21
Lack of adequate
banking
illiteracy
Limited trained Human
Resources
knowledge
regulation
Increased potential for
fraud
environment
Denial of e-documents by
courts
coordination, interaction
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between decision makers
Social-cultural
13.80
22
14.10
21
14.12
22
Language barriers
Knowledge
13.41
21
14.06
25
13.81
23
information system
Legal-security
13.30
25
13.53
26
13.21
24
Weak security measures
Management-
13.29
30
13.52
16
13.16
25
Resistance of employees of
banking
Social-cultural
13.01
27
13.41
20
13.15
26
‘employees
Management-
11.66
24
12.84
27
13.06
27
Lack of long term strategic
banking
management
Management-
11.09
23
12.46
29
12.56
28
Change and shift of
banking
Flaws in design, and
monitoring banks’
banks regarding new
technologies
Perception of e-banking as
a threat for banks
managers and decision
makers
Social-cultural
11.00
28
11.70
28
11.77
29
Charging fees
Infrastructural
10.81
29
9.91
30
10.46
30
Software not suitable
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