Recommendations of Electronic Banking with Particular Reference to User Ability and Security Issues - Essay Example

E-banking systems are – by their nature – quite complex; the complexity and the volume of activities of banks are considered the main reason for the specific characteristics of e-banking schemes. In the literature the security of e-banking schemes has been extensively studied; it has been proved that e-banking systems can be quite risky in case that they are not appropriately planned and monitored; in cases, it is possible that their planner or their administrator have not understood the context of the organizational environment; as a result, when a failure occurs, the persons that supervise these systems are not able to suggest the necessary solution.

The failure of the bank’s managers to identify the organizational needs and align them with the organizational culture and objective is also likely to lead to the failure of e-banking systems – referring also to failures in the management of important data. Commonly, bank managers tend to adopt specific e-banking systems without examining the environment in which this system is going to operate; in this context, it is noted that ‘banks adopt online banking services earlier in markets where their competitors have already adopted this technology’ (Murillo et al., 2010); in certain cases, banks are obliged to develop appropriate safety mechanisms – referring to their e-banking systems – to avoid the effects of such a failure on their overall performance. Regarding this issue, it is noted that ‘safety nets are adopted because of the perceived benefits they will confer in either preventing a weak banking system from spilling over into a full-blown crisis or in enabling the government to handle a crisis more effectively’ (Hoggarth et al., 2005, p.143).
When referring to e-banking schemes safety refers to the following issues: a) the communication between the customer and the bank, b) the exchange of data – data are not transferred successfully and c) failures in the management of data – data are not kept safe. The responsibility of the systems’ administrators is important.