Trust or Distrust
In developing countries, the low cost of online banking may enable banks to reach new customers, much like the cell phone offered new possibilities in telephony. Banks must understand, however, that the mediating use of technology increases interpersonal distance between banks and their customers, which can both decrease trust and exacerbate distrust. This article examines the role of trust and distrust in online banking. A framework for categorizing existing and potential online banking users based on their trust and distrust of online banking is presented.
Categorizations of users are discussed along with recommendations for how banks can address customer concerns. | Introduction: As online banking is becoming the main source of banking during the past years. the emergence of online banking has revolutionized the banking environment and due to this more business , individuals etc use online banking because it saves time , speed up the process , reliable , easy to communicate , feasible , can use it from anywhere any time (availability ) .
These factors encourage the user to use online banking more frequently and relay on the online banking more than normal banking. In many developing countries online banking is preferred over normal banking and it is also encouraged by the banking sector because of the low cost, convenience, reliability. As use of online banking in Pakistan is not common among the business and individual because of the major issues like communication, security, availability, etc. the major banking activities are done the traditional way.
As environment is changing so more and more people are moving towards online banking then normal banking . when using online banking security is the major issue faced. Due to security issues the major business online banking users are reluctant on using online services. Due to online banking services the communication and the interpersonal relationship between the bank and the user has decrease which has affected the trust of the user on online banking. In this research we are focusing on the trust and distrust of people on online banking.
Hypothesis of this research is to know that do people trust on online banking or not. We try to focus on the following things: * Do people trust online banking? * Do people prefer using online banking over normal banking? * What are the major problems faced by people while using online banking? * If security is not the issue would you prefer online banking over normal banking? * Do foreign bank provide more secured online banking then local banks? * Is normal banking more trusted then online banking? Literature Review