Abstract
M.A.
The evolution of the Internet has led to the establishment of various value-adding
products and services such as Internet banking (IB). Internet banking has changed
the formal banking landscape forever. Some may argue that Internet banking has
positively affected the lives of many, through providing services in a more
convenient, efficient and effective manner, 365 days a year. However, the growth of
the Internet has lead to the increase of various Information Technology (IT) problems
and challenges. Today, individuals and organisations are faced with an increasing
number of attacks via computer and Internet viruses, phishing scams and Internet
hackers.
Individuals and organisations must place greater emphasis on ensuring that their
financial well-being is protected. The investment in adequate software and hardware
has become critical to conduct financial transactions securely via the Internet. The
level of security awareness should also be increased and established at various
levels through comprehensive educational programmes. Extensive Internet banking
awareness campaigns have been launched, but the level to which these campaigns
are successful is uncertain.
The main focus of this dissertation is to understand Internet banking customers’
perceptions on information protection when using Internet banking services and
products, as various factors influence the perceptions of trust with regards to Internet
banking. Trust is formed through a variety of factors from the influence of others on
our own beliefs and values, to the experiences gained by using specific technology
or processes over a particular period of time.
An in-depth literature review forms the basic framework for the dissertation and is
followed by an empirical component. The main goal of the literature review is to
provide a solid theoretical framework and basis from which to conduct the empirical
research. Chapters 2 to 4 delve into the evolution and development of the Internet
and provide a perspective on the South African banking landscape. The various
challenges the Internet banking domain is faced with, is explored, and the various
opportunities that exist are extensively discussed. Trust, the major factor influencing
the adoption of Internet banking services and products, is explored, and the factors
that shape and diminish trust are discussed.
The empirical study consisted of a close-ended questionnaire that was completed by
a sample of University of Johannesburg (UJ) alumni. The study included 138
individuals who completed the close-ended questionnaire and the results were
analysed by Statistical Consultation Services (StatCon), a statistical research unit
within UJ.
The results indicate that more should be done to ensure that individuals and
businesses are well-versed on issues pertaining to Internet banking security and
safety. The results further highlight that the quality of most of the individuals’
relationships with their formal bank branch diminished due to Internet banking. An
interesting finding was that 80.7% of the respondents indicated that they would make
use of Internet banking services and products, even though they are aware of
fraudulent activities that take place via this Internet medium. The research findings
provide financial institutions with valuable guidelines on how to plan and implement
effective and efficient Internet banking education and awareness strategies.