Review of related literature
Introduction
This section of the study primarily focuses on the different researches and other literatures that focused on several aspects that will help with the progression of this study. With the topic mainly concerning on the advantages and disadvantages of E-banking to Hong Kong banks, the paper’s main aim is to determine the advantages and disadvantages of E-banking to Hong Kong banks through these appropriate conclusions and eventually recommendations can be made. The literatures presented will come from books, journals, and reports that are deemed to be helpful in the advancement of awareness concerning the subject.
E-commerce
E-commerce is the exchange of goods and services by means of the Internet or other computer networks. E-commerce follows the same basic principles as traditional commerce that is, buyers and sellers come together to exchange goods for money. But rather than conducting business in the traditional way in stores and other brick and mortar buildings or through mail order catalogs and telephone operators in e-commerce buyers and sellers transact business over networked computers. E-commerce offers buyers’ convenience. They can visit the World Wide Web sites of multiple vendors 24 hours a day and seven days a week to compare prices and make purchases, without having to leave their homes or offices. In some cases, consumers can immediately obtain a product or service, such as an electronic book, a music file, or computer software, by downloading it over the Internet (, & , 2004).
For sellers, e-commerce offers a way to cut costs and expand their markets. They do not need to build, staff, or maintain a store or print and distribute mail order catalogs. Automated order tracking and billing systems cut additional labor costs, and if the product or service can be downloaded, e-commerce firms have no distribution costs. Because they sell over the global Internet, sellers have the potential to market their products or services globally and are not limited by the physical location of a store. Internet technologies also permit sellers to track the interests and preferences of their customers with the customer’s permission and then use this information to build an ongoing relationship with the customer by customizing products and services to meet the customer’s needs (, & , 2004).
E-commerce also has some disadvantages, however. Consumers are reluctant to buy some products online. Online furniture businesses, for example, have failed for the most part because customers want to test the comfort of an expensive item such as a sofa before they purchase it. Many people also consider shopping a social experience. For instance, they may enjoy going to a store or a shopping mall with friends or family, an experience that they cannot duplicate online. Consumers also need to be reassured that credit card transactions are secure and that their privacy is respected. A variety of businesses are conducted online, including retail businesses that sell products to consumers, service providers that sell services to consumers, auctioneers that create a marketplace for products and services, and business-to-business commerce. Retail transactions make up the largest part of e-commerce. Consumers can find computers, automobiles, clothing, books, music, airline and event tickets, food, and just about anything else for sale on the Internet. Retail Web sites typically include electronic catalogs that describe and display products for sale (, & , 2004).
Consumers can search for individual items or randomly browse electronic catalogs, some much larger than their mail order print counterparts. An Internet book retailer, for example, can offer millions of different book titles for sale on its Web site, far more titles than could fit into a store or that could be included cost-effectively in a print catalog. Many online retailers allow customers to order products and then track the shipment of their order. Some computer manufacturers also allow consumers to choose different combinations of computer components, selecting the combination that best suits their budget and needs. Customers can then visit the company’s Web site to track the progress of their computer purchase as it is being built and shipped. Many online retailers also automatically notify their customers by e-mail when the product has been shipped. Business-to-business commerce represents one of the fastest growing segments of e-commerce. Businesses order supplies and coordinate complicated projects electronically (, & , 2004).
Growth in E-commerce
Growth in mobile commerce is likely to be driven by alliances between banks and telecommunications companies. Both parties have particular strengths which if brought together can add considerable value. Banks have a banking license, credit verification skills and an established retail network. Mobile operators provide a modern brand image and the infrastructure of a mobile network. Both have a large customer base upon which to draw. While some companies have made public their objective to provide financial services when restrictions on the allocation of banking licenses are lifted, others believe that the partnership route is the way forward. So far, banks have taken a cautious approach and built their mobile capabilities for small numbers of customers on a trial basis. They now face the challenge of scaling up the infrastructure to cope with larger volumes of users. Abbey National, for example, offers e-Banking via the Genie mobile portal, which can be accessed by wireless application protocol (WAP) phones over any service network. The bank’s strategy is to develop partnerships that enable it to offer electronic banking across all technology platforms. These alliances offer customers the security of dealing with an established brand, which can be significant in building the necessary trust for mobile banking to really take off ( & , 2002).
E-banking
Predictions about the market penetration of three important aspects of banking have generally been far off the mark. Starting at least three decades ago, industry analysts and bankers predicted that electronic payments would produce a check less society within, at most, two decades. Over the past three decades, check volume has risen substantially. In contrast, the extent of home banking seems to have fallen far short of the typical predictions for it. Similarly, the advent and rapid growth of automated teller machines (ATMs) gave rise to predictions that they were the vanguard of a major shift toward electronic banking. The shift toward using ATMs was envisioned to involve their providing many additional services, such as deposit-taking and acceptance of loan applications and displacing physical branches and paper-based payments. However, despite the continued rapid expansion in the number of ATMs, their use has overwhelmingly been confined to dispensing cash and occasionally providing account balances (, 2003).Ironically, by bringing new security and convenience to getting cash, technological advances in ATMs probably retarded the adoption of electronic banking. Electronic banking is one of the first things that come to mind when one thinks about the future of banking. It is generally assumed that electronic banking is new and that it will replace or supplement many channels of delivery of retail banking services.
The term electronic banking refers to any banking activity accessed by electronic means. It includes ATMs, automated call centers, digital cash, Internet banking, screen telephones, and so on. These channels of delivery can be used for presenting and paying bills, buying and selling securities, transferring funds, and providing other financial products and services (, 2003). Electronic banking can be used for retail banking and business-to-business (B2B) transactions, as well as for facilitating large-dollar transfers. Equally important, electronic banking is a worldwide phenomenon. As the term is used, it involves transactions. Some institutions only offer web sites that provide information about services offered but do not allow for transactions. These would not be covered under the definition of electronic banking. However, web sites that are transactional are considered electronic banking.
Electronic banking and the Internet in general are forcing a shift in the way banks and other businesses organize and the way they think of themselves. In recent years, banks have made their services increasingly convenient through electronic banking. Electronic banking uses computers to carry out transfers of money. For example, ATM enables bank customers to withdraw money from their checking or savings accounts by inserting an ATM card and a private electronic code into an ATM. The ATMs enable bank customers to access their money 24 hours a day and seven days a week wherever ATMs are located, including in foreign countries. Banks also offer debit cards that directly withdraw funds from a customer’s account for the amount of a purchase, much like writing a check. Banks also use electronic transfers to deposit payroll checks directly into a customer’s account and to automatically pay a customer’s bills when they are due. Many banks also use the Internet to enable customers to pay bills, move money between accounts, and perform other banking functions. A shift is taking place from vertical integration to virtual integration. Banks and other financial intermediaries must realize that they are in the financial information industry. The Internet makes it possible to bring both customers and suppliers together to share critical business information (, 2003). E-banking helps banks relay and show to their clients how good their services are and that the services they offer are of better standards. Through E-banking the company can show the clients that they are better than competitors and can give them satisfaction guaranteed.
Benefits and fears about E-Banking
Electronic banking technologies refer to all the financial activities involving electronic media such as ATMs, debit cards, direct deposit, direct payment, smart cards, and computer banking. The category of electronic banking includes various technological innovations that are currently at different diffusion stages. For example ATMs have been in the market over 30 years, whereas computer banking was introduced relatively recently. Temporal diversity within the category of electronic banking technologies provides an opportunity to explore the impact of communication on consumer adoption of technological innovations at different stages. Recent technological changes in the financial market have altered the nature of consumer interactions with the providers of financial services, reducing the importance of physical location and face-to-face interactions (, , , & , 2002).
Benefits of electronic banking technologies include convenience and cost savings. Using these electronic banking technologies, consumers can conduct fast and convenient financial transaction activities and obtain their account information without direct face-to-face interaction with a customer representative. For financial institutions, transaction cost of electronic banking is only a fraction of the expense for regular teller banking. Because check processing costs approximately 1 billion per year, low cost is also an attractive incentive for governments to embrace electronic banking. As alternative electronic banking options become available, an increasing number of consumers are expected to use them. However, both the financial industry and government seem to face consumer resistance to electronic banking. Paper checks still dominate the U.S. payment system and the majority of consumers prefer to conduct their banking business in person as opposed to using electronic banking technologies (, , , & , 2002).
Learning an unfamiliar practice of banking using technology as opposed to face-to-face interactions may incur some cognitively effortful costs. Furthermore, for those consumers who perceive electronic banking as complex and unreliable, using electronic banking may likely present substantial security and financial costs concerns. Finally, the loss of human contact may likely outweigh the increased benefits of electronic banking if consumers strongly prefer personal interaction to electronic formats. In fact, it has been reported that many consumers are not well informed about the benefits of electronic banking innovations and perceive security risks regarding financial transactions via electronic media. Therefore, creating positive awareness among potential adopters by communicating the increased benefits and reduced costs of electronic banking becomes critical in the successful diffusion of electronic banking innovations. Generally, the print media is the most widely used by marketers to promote consumer adoption of electronic banking innovations. Alternatively, information about electronic banking can be delivered through conversations with salespeople, employees at government/consumer agencies, and family and friends (,, , & , 2002).
The banking system in Hong Kong
The failure of China’s domestic banking and enterprise reforms would not only reduce China’s growth but also its foreign trade, which would adversely affect Hong Kong’s real economic growth and perhaps the performance of Hong Kong banks. The primary role of banks and other financial institutions in a market economy is to serve as an intermediary between savers and investors and to facilitate payments between economic units (, 1998). Banks can take short-term deposits from a large number of individuals and lend some of them long term and still stand ready to meet the demand for withdrawals on the part of some depositors. Third, savers may regard placing all their funds in a single or small number of investments as too risky (, 1998). One thing being looked upon by Hong Kong banks is the use of E-banking. E-banking can be said to be the offspring of E-commerce. This kind of banking has different kinds of benefits, using it can change the way banks serve clients and perform their different duties.
Methodology
After gathering and discussing literature that gives additional knowledge and understanding of the study the next thing to do is gather data and the way it will be gathered will be discussed in this chapter. This chapter will discuss the methods used and done in the study which helps in gaining the needed information. This chapter will discuss about the research method; the chapter will then discuss about sampling and sampling technique. Furthermore this chapter will discuss the method of data collection; this chapter will discuss about validation of the instrument; lastly this chapter will discuss about the statistical treatment of data and the statistical formula used in the interpretation of data.
Research method
The research process onion of , & (2003) will guide the researcher in order to come up with the most suitable research approaches and strategies for this study. The research process union will be used as a basis to show the researcher’s conceptualization of the most applicable research approaches and strategies that will lead to the gathering of the necessary data needed to answer the research questions stated in the first chapter, as well as to arrive to the fulfillment of this research undertaking’s objectives. The research will use the descriptive method to determine the advantages and disadvantages of E-banking to Hong Kong banks. Descriptive research tries to explore the cause of a particular event or situation. It also wants to present facts concerning the nature and status of a situation, as it exists at the time of the study (, 1994). In addition, such method tries to describe present conditions, events or systems based on the impressions or reactions of the participants of the research. Basically, a descriptive research utilizes observations and surveys. For this reason, the study calls for the use of this approach because it is a goal of the study to gather first hand information from bank managers and other people knowledgeable about risk management and financial stability. This way, the study will be able to make comprehensive conclusions and attainable recommendations at the end of discussion. The descriptive approach is also quicker and more practical in terms of financing.
Moreover, this method will allow for a flexible approach, thus, when important new issues, probabilities, and questions come up during the duration of the study, a further investigation and confirmation may be allowed. Lastly this type of approach will allow for decisions to drop unproductive areas of research from the original plan of the study. The choice and design of methods are constantly modified during data gathering based on continuing analysis. This will give way for creation of an investigation of important new issues, concerns, probabilities and questions as they arose. In addition, this study also employed partly qualitative research method, since this research intends to find theories that would explain the relationship of one variable with another variable through qualitative elements in research. These qualitative elements do not have standard measures; rather, they are behavior, attitudes, opinions, and beliefs. The qualitative research is described as multi-method in focus, involving an interpretative, naturalistic approach to its subject matter. This means that a qualitative researching procedure acts on studying things in their natural settings, attempting to make sense of situations, or interpret events in terms of the meanings people bring to them.
Sample and Sampling Technique The respondents of the study came from the different banks mentioned from Hong Kong. Due to time constraint and also, for the convenience of the researcher, only thirty (30) respondents were considered for the study. The convenience sampling technique was imposed in the study to pick up the thirty respondents, mainly because the availability of the respondents from the different banks was considered. This part of the study is important because the most important data needed to fulfill the objectives and aims of this study will only be supplied by the respondents from Hong Kong banks like HSBC, Standard Chartered Bank (SCB) and Hang Seng Bank (HSB).
Data Collection Method to use In gathering the data needed in this study a survey using questionnaire and interviews that will be conducted by the researcher will be utilized. A questionnaire will be constructed and administered to the respondents via personal interviews, as mentioned earlier the respondents of the study came from the different banks mentioned from Hong Kong. The respondents will be requested to answer the inquiries in the survey-questionnaire, each grading the statements using the Likert scale. The equivalent weights for the answers will be:
Range Interpretation
0.00 – 1.49 Strongly Agree
1.50 – 2.49 Agree
2.50 – 3.49 Undecided
3.50 – 4.00 Disagree
4.50 – 5.00 Strongly Disagree
In the Likert technique, a set of attitude statements are presented, where subjects of a study are asked to express agreement or disagreement using a five-point scale. The degree of agreement is given a numerical value ranging from one to five, thus a total numerical value can be calculated from all the responses. (, 2004)
Primary and secondary data collection
The primary source of data will come from a survey using questionnaire and interviews that will be conducted by the researcher. The primary data frequently gives the detailed definitions of terms and statistical units used in the survey. These are usually broken down into finer classifications. The secondary source of data will come from research through the internet; books, journals, related studies and other sources of information. Acquiring secondary data are more convenient to use because they are already condensed and organized. Moreover, analysis and interpretation are done more easily.
Validation of the Instrument
For validation purposes, the researcher pre-tested a sample of the set survey questionnaires. This was done by conducting an initial survey to at least five respondents from the different banks from Hong Kong. After the respondents answered, the researchers then asked them to cite the parts of the questionnaire that needs improvement. The researcher even asked for suggestions and corrections from the respondents to ensure that the survey-questionnaire is effective. Automatically, these five respondents were not included as respondents for the study.
Data analysis
Data gathered will be analyzed through frequency distributions. These will give way to reviewing the data categories and the number of referrals in each category. With relation to data analysis, the indicators that will be used in evaluating the study include the age bracket the respondent belongs to; the social status; the educational attainment of the respondents; the position of the respondents in the company or in the banking institution and the number of years the respondent served as an employee of the company. This can help in determining the course of the study and why does the question in the study have those kinds of answers.
Statistical Treatment of Data
After all the data from the researcher-made questionnaire were collected, the following statistical formulae will be used:
1. Percentage – to determine the magnitude of the responses to the questionnaire.
n
% = ——– x 100 ; n – number of responses
N N – total number of respondents
2. Weighted Mean
f1x1 + f2x2 + f3x3 + f4x4 + f5x5
x= ——————————————— ;
xt
Where: f – weight given to each response
x – number of responses
xt – total number of responses
The researcher will be assisted by the Statistical Package for the Social Sciences (SPSS) in coming up with the statistical analysis for this study. In analyzing the research, graphs will be needed to give a more detailed and illustrative presentation of the research. The graphs will be used to show the differences in the ideas of the respondents. Such things will be done to help in making sure that the objectives in conducting the research will be done and a good conclusions and recommendations will be accomplished.
Presentation, interpretation and analysis of data
After data collection the next thing to be done is data presentation, interpretation and analysis. It is important that the research output be presented in an organized, coherent and understandable manner so that those who will read the research can propose important decisions about the results of the study. In preparation of the research output the things that should be considered includes the purpose, target reader or target end-user, clarity, appropriate words style, graphic aids. Purpose means the desired effect or the desired outcome of something, it must be clear whether the purpose of the research is to inform, to criticize a previously done investigation about a certain issue, or to propose policies or strategies, It must be assured that the problem is well addressed from start to end.
Type, length, nature of the data being discussed should be relevant to the purpose of the study. Target reader / end–user are those who the study wants to reach and attract to read the research. These are one of the reasons studies are made. They get knowledge from the studies and use it to create related and better studies Contents and presentation of the data should be pertinent to the needs of the target reader or end-user. The data should be easily understood and concise for the reader to be attracted to it. The data should be well presented to coincide to the needs of the customer. The data should make the consumer learn from it.
Clarity is the precision of data. Using words that are specific, measurable, and descriptive will help in illustrating statements and ideas. Logical data organization and a sound interpretation add clarity to a report. In relation to this, n making conclusions and recommendations there should be relative data at hand to make the course of action doable. Appropriate words are words that give more meaning to a statement, appropriate words help to give proper description to the data. Concepts or words with inconsistent meaning should be shunned. Using jargons or languages that are meaningless should be avoided. In making the research, its language should be familiar to the reader or it must be used commonly in day to day business in the field of the reader. Technical terms should be defined since not all readers understand these words. The study should avoid words which appeal to emotions, being bias, and moral judgment.
Style is way the study is presented. The study should be clear, readable and understandable. The study should have consistency. It should have correct grammar, its spelling should be correct, it should have proper punctuation, it should compose of short and simple sentences. It should be presented in a manner a reader will be attracted to it. To help enrich the analysis of the data, direct quotation from the answers of the respondents will be beneficial. The discussion can be easier if a section is subdivided into subtopics based on the objectives or hypothesis of the study, to focus on the analysis. Graphical aids are one way to effectively send the message of the study. It can be used as an integral or supplemental part of the text. Graphical aids should be clear and easily understood by the reader. The data should be accurate to prevent miscalculations and misinterpretations. Graphical aids include tables, graphs and charts. Charts can either be a pie chart, vertical bar chart or line bar chart.
This chapter intends to discuss the information acquired from the survey and interview done for the research. The main objective of the study of this study is directed towards finding out the advantages and disadvantages of E-banking to Hong Kong banks. Primary research and secondary research was used for this study. Primary research was done using questionnaire; the questionnaire was be given to the participants, which compose of bank managers and other people knowledgeable about risk management and financial stability. The questionnaire had two sections: the first part intended to acquire the demographic profile of the participants, and the other section comprised of a set of attitude statements that intends to determine the level of agreement or disagreement using a five-point Likert scale. This chapter has been divided into two parts. The first part intends to give information about the respondents particularly with regards to their age, gender, civil status, educational attainment, and length of service in their industry. This part takes a look at the reliability of the respondents. The second part intends to give information about the ideas of the respondents with regards to the advantages and disadvantages of E-banking to Hong Kong banks. In this part answers to the research questions will be given. Afterwards analysis of the results will be done. This part takes a look at the results and what it implies within the study.
Part 1 Presentation of Demographic Data
In this part of the study, the general profile of the respondents shall be discussed. Initially age of the respondents will be given attention. The participant’s age was divided into different groups. The groups include 52 up; 46 to 52; 39 to 45; 32 to 38; 25 to 31; and 18 to 24. The succeeding figure will give the response of the participants.
Figure 1
Percentage distribution of respondent’s age
The first figure shows that 44% of the respondents were those at the age level of 39 to 44. This might be reflected by the fact that most of the respondent’s positions in a company were managerial positions and to attain that position requires a substantial amount of working experience. To attain a managerial position someone must not only be experienced but matured enough for the endeavor. The figure also showed that 22% of the respondents were those at the age level of 25 to 31. Moreover the first figure showed that 16% of the respondents were at the age level 46 to 52. The figure showed that 11% of the participants were at the age level of 52 and above. Lastly the figure showed that 7% of the respondents were at the age level of 25 to 31. Getting information from an older person gives some assurance that the information received came from the experience of the person.
Older persons can relate information according to what they experienced. That is why most of the respondents were aged 39 to 45, within this age bracket are those who learned and gained a lot of experience from school, previous and current work. They are more mature and full of ideas. This age bracket is those who are well on their way on the corporate ladder, they are soon to be promoted or may have been promoted due to their good performance. They have a bright future ahead of them, their ideas may be new but it can revitalize the company.
Figure 2
Percentage distribution of respondents ‘Gender
The second figure shows that more than half of the respondents were male; they were 70% of the total respondents. 30% of the respondents were female. Male employees are considered to be more active and should be doing the hard work. Most male employees are the company’s muscle they usually are the moving force in the company. That is why most men are assigned to do field works. This shows that since most of the respondents are male, they tend to be more of the ones who deal with people through personal conversation; they can be the ones who can prove or disprove the problem through their experiences in dealing with people. Men are more firm in their decision and they are more persistent in dealing with different kinds of people.
Figure 3
Percentage distribution of respondents’ civil status
The 3rd figure shows that almost half of the respondents are married; they were 41% of the total number of respondents. 27% of the respondents were separated. 22% and 10% were divorced and single accordingly. Most of the respondents are married and had gained a lot of maturity and experience. Married persons are more mature than those who are single. In getting the necessary information it is important to ask persons who are more maturity to prevent being misled. This proves that most of the respondents were mature enough and experienced enough to prove or disprove the problem.
Figure 4
Percentage distribution of respondents’ Educational attainment
The fourth figure shows that most of the respondents attained college degree, more than half of the respondents or 72% of the total number of respondents were college graduates. 18% of the respondents have finished their Masteral Curriculum. 10% of the respondents had a Doctorate degree. The respondents should be educated well to give the necessary information. Education of a person is an important factor in considering if the information taken from a person is useful or not for the study. With more education acquired by these persons, more experiences and knowledge can be attributed to them. This can be benefit the study and the information needed. This shows that most of the respondents were well educated and can be relied upon to give exact answers to the questions. This also shows that the respondents were well experienced and well learned of what the internet can or cannot do.
Figure 5
Percentage distribution of respondents’ length of service in the company
The fifth figure shows that 55% of the respondents have been serving their respective companies for more than 5 years. 26% of the respondents have been serving their companies for 4 years. 19% of the respondents have been serving their company for 3 years. Majority of the respondents have already years of experience in the company. With experience comes knowledge and wisdom. The respondents had experienced and learned many things about the company. This could help in gaining necessary information.
Respondents who had worked with the company for more than 5 years can help in determining the advantages and disadvantages of E-banking to Hong Kong banks. They have observed things that happened in their company and the industry. They know what causes the problems they are facing and the things they might encounter. There are no respondents who had worked less than a year in a certain company since this type of respondents are less experienced and might not help in giving necessary information.
Part 2 Ideas of the respondents
In this part of the study the responses of the respondents will be presented and be given attention and analysis. All of the respondents’ responses are based on whether they agree, disagree, strongly agree, strongly disagree, or neutral/undecided with the questions stated regarding the advantages and disadvantages of E-banking to Hong Kong banks. The participants’ responses are vital and much needed to achieve the objectives of the study. To achieve the objectives is to get the necessary and reliable information regarding the advantages and disadvantages of E-banking to Hong Kong banks. The participant’s responses after being put in an organized conclusion will give the necessary information to find a logical solution for the study’s problem; it can also assist in providing a reachable recommendation and course of action. Such responses will be represented by figures or graph to make it clear and to achieve greater understanding. Lastly these graphs helps in making the study more visual oriented for greater appreciation by the reader.
Figure 6
Percentage distribution of the survey results of the first question
The first question asked the respondents if they believe that E banking helps in removing situations wherein time is being wasted by the Hong Kong banks. Majority of the respondents agree with the question. They were 43% of the total number of respondents. Another big part of the respondents strongly agree to the first question. They were 37% of the total number of respondents. A part of the respondents are neutral or undecided on the first question. They were 20% of the total number of respondents. The respondents believe that with the use of e- banking time will not be wasted. The different banks in Hong Kong and their employees can do more things at the same time. They won’t have to personally deal with clients who may require more time thus removing their chance of doing other things.
Figure 7
Percentage distribution of the survey results of the second question
The second question asked the respondents if they believe that E-banking helps in making sure that service is carried efficiently and effectively. Majority of the respondents agree on the question. They were 57% of the total number of respondents. A part of the respondents strongly agree with the statement. They were 27% of the number of respondents. Lastly the smallest part of the respondents was undecided or neutral with the question. They were 17% of the total number of respondents. The respondents think that E-Banking can make the way Hong Kong banks serve clients more effective and easier. E-banking provides a better image to banks, when they provide an effective and efficient service to clients their image is changed and it attracts more clients.
Figure 9
Percentage distribution of the survey results of the third question
The third question asked the respondents if they believe that E-banking helps in removing certain costs for banks. Majority of the respondents agree with the question they were 67% of the total number of respondents. A part of the respondents strongly agree with the question. They were 23% of the total number of respondents. The smallest part of the respondents is undecided or neutral with the question. They were 10% of the total number of respondents. The respondents think that E-banking removes some of the cost of the banks. The different banks in Hong Kong don’t have to spend on the different papers and printed materials that they use in transacting with clients. With the use of E-banking no forms are needed. Everything is just typed on the computer. Requests are made on the computer as well. The different banks in Hong Kong also have lesser expenditures on human resources since E-banking will take fewer people to transact with clients. The banks will not have to hire people to transact with clients because their personnel can do that while doing other things.
Figure 10
Percentage distribution of the survey results of the fifth question
The fifth question asked the respondents if they believe that E- banking helps in keeping data safe. Majority of the respondents disagree with the question they were 60% of the total number of respondents. A big part of the respondents strongly disagreed with the question. They were 30% of the total number of respondents. A little part of the respondents was undecided with the question. They were 10% of the total number of respondents. The respondents don’t believe that data owned by clients and banks are not safe when e- banking is used. The internet can be a dangerous place for files to be transmitted or kept. Banks have many kinds of files and when it is placed online some unscrupulous persons might attempt to steal it for their own satisfaction. Although there are certain soft wares and programs that can be used to block unauthorized transactions this may not be enough for people who already has a great knowledge in taking other people’s data through the internet.
Figure 11
Percentage distribution of the survey results of the seventh question
The seventh question asked the respondents if they believe that E- banking is easy to learn. Majority of the respondents disagree with the question they were 47% of the total number of respondents. A big part of the respondents strongly disagreed with the question. They were 30% of the total number of respondents. A little part of the respondents was undecided with the question. They were 23% of the total number of respondents. The respondents don’t believe that E- banking is easy to learn. They think that this may be a source of problem for the banks in Hong Kong. They think that not all people can easily learn how to use E-Banking. Most of the trusted and well tested employees are not used to computers and the internet. The different financial institutions will have to give more time for them to learn how to use such technology. This results to services being delayed.
Figure 13
Percentage distribution of the survey results of the tenth question
The tenth question asked the respondents if they believe that the E-banking makes banks loose a human touch with their clients. Majority of the respondents disagree with the question they were 70% of the total number of respondents. A big part of the respondents strongly disagreed with the question. They were 27% of the total number of respondents. A little part of the respondents was undecided with the question. They were 3% of the total number of respondents. The respondents think that E-banking makes banks in Hong Kong lose some kind of personal touch or communication with clients. E-banking prevents banks to deal with clients personally. Personal communication is an important aspect of client to business relationship. The bond between the client and the business makes services delivered accurately.
Analysis of Data
There are 3 advantages of E-banking to HK banks. One advantage is E-banking saves time for the banks and their personnel, another is it helps in making banks serve effectively and efficiently. E-banking also removes some of the banks costs. The respondents believe that with the use of e- banking time will not be wasted. The different banks in Hong Kong and their employees can do more things at the same time. The respondents think that E-Banking can make the way Hong Kong banks serve clients more effective and easier. E-banking provides a better image to banks, when they provide an effective and efficient service to clients their image is changed and it attracts more clients. The respondents think that E-banking removes some of the cost of the banks. The different banks in Hong Kong don’t have to spend on the different papers and printed materials that they use in transacting with clients. With the use of E-banking no forms are needed
On the other hand there are 3 disadvantages of E-banking to HK banks. One is E-banking might not be a safe place for data, another is it may not be easy to learn. E-banking also may make banks lose their personal touch with clients. The respondents don’t believe that data owned by clients and banks are not safe when e-banking is used. The internet can be a dangerous place for files to be transmitted or kept. The respondents don’t believe that E- banking is easy to learn. They think that this may be a source of problem for the banks in Hong Kong. They think that not all people can easily learn how to use E-Banking. The respondents think that E-banking makes banks in Hong Kong lose some kind of personal touch or communication with clients. E-banking prevents banks to deal with clients personally.
References
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