Importance of Internet Banking - Coursework Example

ARTICLE CRITIQUE Article Critique Customer Inserts His/Her Name Customer Inserts Grade Course Customer Inserts Tutor’s Name 31, 08, 2010 Introduction Internet banking is a mode of modern banking that is taking over the banking world by allowing its users to be able to carry out banking activities, both as bankers and as bank clients. The banking strategies used involve the use of the internet to access the bank accounts and carry out any financial activities such as financial transfers, payment of bills, enquiring bank balances and all the other related banking activities all carried out after accessing the internet from anywhere rather that being physically present in the bank to carry out the activities. Internet banking has various advantages in the currently developed technological world. The method is very cheap and has been rated as the cheapest and most convenient and safe method of banking in the world compared to mobile banking, which is relatively cheap and physical banking, which has been rated as the most expensive mode of banking. The method is also very convenient and efficient as one can be able to carry out banking activities from anywhere without the need for being physically present in the banking hall. Moreover, the method is quite beneficial for both the bankers and the clients. The clients are able to save a lot of money and time as the method is cheaper and also involves fewer expenses and activities. In addition, the method allows banks to be able to carry out banking activities more easily even as they offer more quality and reliable services even as they reduce on the expenses involved in physical service delivery. On the other side, banks have been able to advance in the application of technology resulting to a rise in online virtual banks that are able to operate with minimum or completely no any form of physical involvement. This leads to a growth in the economy and in the world of banking. Finally, since there are currently more people able to access the internet than in the past, then the banks are able to access more clients online and he hence they are able to expand their customer base (Awamleh and Fernandes 2010). The internet banking has many benefits to organizations that utilize it as it not only benefits in reaching the clients and in the clients undertaking their financial transactions online but to a large extent, this mode of banking helps in achievement of organizational goals and objectives by the management of the bank. It helps instill more reliable and effective organizational structures and also helps in monitoring the development of the activities being carried out and the progress of the organizations, mostly the banking sector, in determining how well they are equipped in achieving their organizational goals. The banks and other organizations are able to carry out marketing strategies more effectively and hence are able to reach a larger customer base easily compared to when they are using the physical banking and marketing means. This way, the organization is able to grow and benefit even as its clients benefit from this banking technique. A Critique of the Article The article considered for the assignment was the article whose topic was “Internet Banking: An empirical investigation into the extent of adoption by banks and the determinants of customer satisfaction in the United Arab Emirates”, an article that involves a study of the infiltration of the internet banking technology into the markets in the Middle East and also the factors that influence and determine the satisfaction of customers from this technique of banking. The topic of the article is very relevant as it indicates very clearly the scope of the study, its location and focus and its application in the market place. The study seeks to identify the development and acceptability of internet banking in the Middle East, a fast growing economy and business center in the world. The topic also elaborates that the study will seek to identify the main factors that result to customer satisfaction in the internet banking systems. Overall, the study aims at evaluating the marketability of this technological banking system and identifying the reasons why other developing and developed economies should embrace the technology. Hence, the article helps in not only elaborating what the technique entails but also in marketing the technique so that it becomes more acceptable worldwide. Hence, the topic helps in the understanding of the strategic marketing techniques as well as in encouraging advancement of organizational effectiveness in the Middle East, and especially in UAE (Guru, Shanmugam, Alam and Perera 2003). The introduction of the topic is very comprehensive and helps one understand the basics of the economy being investigated, the UAE, as well as introducing the topic at hand, internet marketing, and all it entails. The section also introduces the problem statement in a good way. It explains the prevailing situation in UAE that restricts foreign banking firms on the number of branches they can open in the UAE and hence goes ahead to relate this to the population that needs the banking facilities and hence the prevailing need for more banking facilities. Since the banking firms are limited on their prevalence of opening more branches in the region, they are usually left with only one option to utilize in reaching their clients in the region. The internet banking technology is an unlimited and convenient way of reaching clients and carrying out any financial transactions in a safe and secure way against the physical restrictions to the banking firms (Awamleh and Fernandes 2010). Literature Review The section is a review of all the materials that are available on the topic being investigated. The section introduces the model being used for the study at hand. The Diniz Model is a popular model used in analysis used for examination of the websites used by the internet banking firms so as to identify their strengths and weaknesses as well as their progress. The model also constitutes of different functional areas and also some different levels of applicability, which are all explained in the section. The section is up-to-date since it reviews all the past information existing on the field of study as well as determining the way the study can advance such knowledge in the field of marketing and technology and generally in the banking sector. Methodology and Results Section The section introduces the methods involved in the internet banking and all the data collected in the study. In addition, the methodology section elaborates on the form of study being used in the article and how it was carried out. It goes ahead to show the population being considered and how the sample to represent that population was selected and constituted. The data analysis procedures are given and the results displayed in a clear and understandable way. The use of tables for the display of data and results is a preferable way as it ensures that the data being discussed is clearly displayed and stated so that the reader is able to understand it better (Guru, Shanmugam, Alam and Perera 2003). Different statistical analysis techniques have been applied in the analysis of the data collected in the study. These techniques are very reliable and give clear analysis of the data hence helping in achievement of the objectives of the study in determining the statistical relevance of the data that has been collected. Discussion The discussion of the results obtained from the analysis of the collected data has been carried out in a very systematic and acceptable way. It helps in elaborating and discussing the results in a more clear and understandable way that is clear to the layman and those that are not acquainted to the statistical terms and analysis. The section hence seeks to explain the results obtained from the analysis and the relevance and applicability of such results to the current study. The section hence shows what the results say about the extent of application of internet banking in the region. In this section, it is clear that the internet banking systems are still in their developing stages in the region and have not been fully applied in the banking sector as required. The section also seeks to explain the results obtained from the data on satisfaction of customers and notes the main factors that are necessary for any internet banking firm to be able to bring satisfaction to its customers hence attracting more clients and helping in advancement of the internet banking technology in the region. Conclusions The section involves an in-depth consideration of the results obtained from the data used in the study. The main aim of using such data was so that the information obtained from the sample population may be used to draw conclusions on the characteristics of the whole population. This way, the data becomes relevant to the study and sheds light on the achievements of the study. The section is comprehensive and explains how well the study was able to achieve its objectives by analyzing data collected from a sample obtained from the target population and then making inferences on the characteristics of the whole population. The section hence identifies the development of internet banking in the region and the required advancements that may help in development of the internet banking industry. On the other hand, the section also shows how the study was effective in achievement of the goals and objectives of the study in identifying the main factors that determine customer satisfaction in the internet banking sector (Awamleh and Fernandes 2010). Strengths and Weaknesses The article is very clear on its objectives and the whole process involved in achieving such objectives. It helps in proper understanding of the internet banking concepts and tits development in the Middle East economy of UAE. The article also applies very reliable and sophisticated methods of data collection and analysis hence ensuring that proper conclusions are made from the study. More specifically, the statistical methods used in the study are incredible. However, most of the language used in the study is very hard to understand for the layman. Also, some of the tables displaying data and results are very long and not properly formulated. They should have been formulated in a manner that they are shorter, probably by coming up with different tables to represent different concepts and factors in the study. Contributions of the Article The article has gone a long way in advancing knowledge on the area of banking especially relating to internet banking in one of the most significant economies in the world, the UAE. This way, most of the practitioners and students have been able to understand the basic factors that result to the different satisfaction levels of customers using internet banking in the region as well as the extent to which the technique has developed in the region. The article is also a great icon in the marketing industry as it has dealt in depths with the factors that may result in to the development of the internet banking industry in the given region, a factor that may help the already existing firms acquire a larger knowledge on how best to deliver services as well as encouraging more potential investors and customers to engage in the internet banking industry. References Awamleh, R and Fernandes, C 2010, Internet Banking: An empirical investigation into the extent of adoption by banks and the determinants of customer satisfaction in the United Arab Emirates, Available from: < http://www.arraydev.com/commerce/JIBC/2005-02/raedcedwyn1.HTM >. ( October 30, 2010). Guru, B, Shanmugam, B, Alam, N, and Perera, C, (2003). ‘An evaluation of Internet banking sites in Islamic countries’. Journal of Internet Banking and Commerce, Vol. 8 No. 2, pp. 1-9. Read More