Investigating the Main Factors on Adoption of Internet Banking of HSBC Uxbridge Branch - Coursework Example

After its advent in the year 1969, Internet has evolved from the sole domain of computers and academics to the mainstream channel of communication. The Internet has completely changed the way businesses run. Communication is the main factor for success in a number of companies and the Internet is the key tool of communication. In the banking sector, communication is the key determinant of success, so, it has adapted information technologies right from the invention of the Internet, so as to improve their communication with in-house staff as well as the client base. The emergence of Internet Banking has also prompted a number of banks to rethink their strategies of Information Technology in order to sustain in the competitive industry. Modern-day customers demand more from the banking services, as they want new levels of flexibility and convenience than what traditional banks offer. In spite of the fact that Internet Banking is the need of the time, there is an immediate necessity to solve some of the key problems, which is necessary to make it widely acceptable.

Banking Industry and Online Banking
According to Hickman, 85% of the largest banks in the United States of America offer Internet Banking services in their basic forms, like, statements, access to accounts, stop payments, transfers, along clear items. Most of these banks are also beginning their complete Internet banking services, comprising services on online loans, bill payment, and brokerage. Research supports the fact that both banks and customers can benefit from Internet banking. However, there are a number of factors that need to be taken into consideration, the bank’s perceptions of Internet banking and the customers’ perceptions of internet banking being the principal ones. Along with benefitting the customers and the banks, internet banking or E-banking is beneficial for small and medium businesses as well. (Nath R., Schrick P. and Parzinger M., 2001, A)

Benefits of Online Banking to its Customers
Customers are benefitted in a number of ways from internet banking. The first and foremost benefit is convenience. The customers can operate 24 hours a day and seven days a week. (Benefits for Customers, n.d.)

Cost Savings – Cyberspace is relatively cheaper to operate than the bricks and mortar structure and this benefit is often passed to the customers. Internet banking offers customers cost savings and financial benefits for the online transactions of services.