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Customers’ Trust on E-Banking System in Bangladesh

Received: 16 October 2019     Accepted: 23 October 2019     Published: 30 October 2019
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Abstract

E-banking is the newest improvement in banking sector which is a latest dimension to banking dealings by permitting customers to perform financial transaction through the delivery channel. The study was designed to investigate practices, impact, security, problems and prospects of e-banking in Bangladesh which are directly related with the trust on electronic banking. To collect data for this study a set of questionnaire was developed with 44 questions which covered the above mentioned elements of e-banking in Bangladesh. Total 224 respondents are selected purposively from bankers and customers of whom 75 bankers and 149 are bank customers of sixteen randomly selected banks. Banks are classified into four categories like state owned commercial bank, domestic private commercial bank, foreign commercial bank and other specialized bank which activates in Bangladesh. Statistical software SPSS was used to analyze data. The result shows that customers trust depends basically on security measures, customers awareness, educational qualification, authentication of e-transaction, e-service quality of banks, bankers behavior etc. Every step in the online banking activities is secured by one or more security mechanisms. Customer’s awareness is one of the most important elements to build up trust on e-banking. Low educated people are afraid of doing e-banking operation. Problems or difficulties are directly related with customers trust. If customers trust is reduced if they face difficulties to do an e-transaction.

Published in International Journal of Economics, Finance and Management Sciences (Volume 7, Issue 6)
DOI 10.11648/j.ijefm.20190706.11
Page(s) 178-186
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

E-banking, Problems, Security, Trust

References
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[4] Huda F and Ahmed T (2017) “Prospect of E-Banking in Bangladesh: New Way to Make Banking Electronic.” Asian Economic and Financial Review.
[5] Rahman M, Saha N K, Sarkaer M N I, Sultana A and Prodhan A Z M S (2017) “Problems and Prospects of Electronic Banking in Bangladesh: A Case Study on Dutch-Bangla Bank Limited” American Journal of Operations Management and Information Systems.
[6] Ahmed S M S, Rayhan S J, Islam M A (2011) “Problems and Prospects of Mobile Banking in Bangladesh.” Journal of Information Engineering and Applications.
[7] Sharafi M A A, Arshah R A, Herzallah F A T and Shanab E A A (2018) “The impact of Customer Trust and Perception of Security and Privacy on the Acceptance of Online Banking Services: Structural Equation Modeling Approach.” International Journal of Industrial Management (IJIM).
[8] Moga L M, Neculita M, & Khani N (2012) “Trust and Security in E-banking Adoption in Romania.” http://rc4ht3qs8p.search.serialssolutions.com
[9] Mohiuddin U (2014) “Trend and Development of E-Banking: A Study on Bangladesh.” IOSR Journal of Business and Management.
[10] Nasri W (2011) “Factors Influencing the Adoption of Internet Banking in Tunisia” International Journal of Business and Management.
[11] Riyadh A N, Akter M S and Islam N (2009) “The Adoption of E-banking in Developing Countries: A Theoretical Model for SMEs.” International Review of Business Research Papers.
[12] Sudeep S (2007) “Internet Banking and Customer Acceptance: The Indian Scenario” Doctor of Philosophy, Dept of Applied Economics, Cochin University of Science & Technology.
[13] Gunaratnam A, Konalingam K, Ratnam U & Sivapalan A (2018) “Factors Influencing on E-Banking Practices: Evidence from Sri Lanka.” Journal of Sociological Research.
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[17] Suh B and Han I (2002) “Effect of trust on customer acceptance of Internet banking.” Electronic Commerce Research and Applications Volume 1, Issues 3–4.
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Cite This Article
  • APA Style

    Mohammad Shamsus Sadekin, Shamima Nasrin Mukta, Md. Abdul Hannan Shaikh. (2019). Customers’ Trust on E-Banking System in Bangladesh. International Journal of Economics, Finance and Management Sciences, 7(6), 178-186. https://doi.org/10.11648/j.ijefm.20190706.11

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    ACS Style

    Mohammad Shamsus Sadekin; Shamima Nasrin Mukta; Md. Abdul Hannan Shaikh. Customers’ Trust on E-Banking System in Bangladesh. Int. J. Econ. Finance Manag. Sci. 2019, 7(6), 178-186. doi: 10.11648/j.ijefm.20190706.11

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    AMA Style

    Mohammad Shamsus Sadekin, Shamima Nasrin Mukta, Md. Abdul Hannan Shaikh. Customers’ Trust on E-Banking System in Bangladesh. Int J Econ Finance Manag Sci. 2019;7(6):178-186. doi: 10.11648/j.ijefm.20190706.11

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  • @article{10.11648/j.ijefm.20190706.11,
      author = {Mohammad Shamsus Sadekin and Shamima Nasrin Mukta and Md. Abdul Hannan Shaikh},
      title = {Customers’ Trust on E-Banking System in Bangladesh},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {7},
      number = {6},
      pages = {178-186},
      doi = {10.11648/j.ijefm.20190706.11},
      url = {https://doi.org/10.11648/j.ijefm.20190706.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20190706.11},
      abstract = {E-banking is the newest improvement in banking sector which is a latest dimension to banking dealings by permitting customers to perform financial transaction through the delivery channel. The study was designed to investigate practices, impact, security, problems and prospects of e-banking in Bangladesh which are directly related with the trust on electronic banking. To collect data for this study a set of questionnaire was developed with 44 questions which covered the above mentioned elements of e-banking in Bangladesh. Total 224 respondents are selected purposively from bankers and customers of whom 75 bankers and 149 are bank customers of sixteen randomly selected banks. Banks are classified into four categories like state owned commercial bank, domestic private commercial bank, foreign commercial bank and other specialized bank which activates in Bangladesh. Statistical software SPSS was used to analyze data. The result shows that customers trust depends basically on security measures, customers awareness, educational qualification, authentication of e-transaction, e-service quality of banks, bankers behavior etc. Every step in the online banking activities is secured by one or more security mechanisms. Customer’s awareness is one of the most important elements to build up trust on e-banking. Low educated people are afraid of doing e-banking operation. Problems or difficulties are directly related with customers trust. If customers trust is reduced if they face difficulties to do an e-transaction.},
     year = {2019}
    }
    

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  • TY  - JOUR
    T1  - Customers’ Trust on E-Banking System in Bangladesh
    AU  - Mohammad Shamsus Sadekin
    AU  - Shamima Nasrin Mukta
    AU  - Md. Abdul Hannan Shaikh
    Y1  - 2019/10/30
    PY  - 2019
    N1  - https://doi.org/10.11648/j.ijefm.20190706.11
    DO  - 10.11648/j.ijefm.20190706.11
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 178
    EP  - 186
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20190706.11
    AB  - E-banking is the newest improvement in banking sector which is a latest dimension to banking dealings by permitting customers to perform financial transaction through the delivery channel. The study was designed to investigate practices, impact, security, problems and prospects of e-banking in Bangladesh which are directly related with the trust on electronic banking. To collect data for this study a set of questionnaire was developed with 44 questions which covered the above mentioned elements of e-banking in Bangladesh. Total 224 respondents are selected purposively from bankers and customers of whom 75 bankers and 149 are bank customers of sixteen randomly selected banks. Banks are classified into four categories like state owned commercial bank, domestic private commercial bank, foreign commercial bank and other specialized bank which activates in Bangladesh. Statistical software SPSS was used to analyze data. The result shows that customers trust depends basically on security measures, customers awareness, educational qualification, authentication of e-transaction, e-service quality of banks, bankers behavior etc. Every step in the online banking activities is secured by one or more security mechanisms. Customer’s awareness is one of the most important elements to build up trust on e-banking. Low educated people are afraid of doing e-banking operation. Problems or difficulties are directly related with customers trust. If customers trust is reduced if they face difficulties to do an e-transaction.
    VL  - 7
    IS  - 6
    ER  - 

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Author Information
  • Department of Humanities, Chittagong University of Engineering & Technology, Chittagong, Bangladesh

  • Department of Humanities, Chittagong University of Engineering & Technology, Chittagong, Bangladesh

  • Department of Management, Islamic University, Kushtia, Bangladesh

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