Technical factors affecting e-banking development in Iran - Dissertation Example

Research questions The purpose of this study is to get greater understanding of e-Banking phenomenon and find out its implementation obstacles in Iran. In the conduct of the collection of data; both primary and secondary data, it is important that the researcher has a guide on the kind of data to collect and which ones to ignore. In doing this, the following research questions have been set to guide the researcher on the exact data to go after. Therefore, the researcher tries to reach this goal by answering the following questions.

1 What have been the hindrances to the advancement of e-banking in Iran? Problem Overview In recent years acceptance of e-Banking has been rapid. In many west countries like Finland over 50% of bank customers use e-Banking services. On the other hand some evidence shows half of new customers that have used e-Banking for the first time, do not continue using this channel as an active customer.(reference needed) the development of new technologies in communications and information practices and the emergence of new services and increasing expectations and needs for banking services market caused our public and private banks to compete for providing new e-banking services.

E-banking in recent decade has been carried out with various implementations in our country by a variety of public and private banks. Now each bank more or less seeks for efficient use of this new technology. However, it seems the use of e-banking is still not institutionalized in the culture of our people, and customers still do not use this technology with trust for large financial transactions. The Central Bank of Iran (CBI) observes that not many companies and organisations are taking advantage of.

The paper tells that in recent years acceptance of e-Banking has been rapid. In many west countries like Finland over 50% of bank customers use e-Banking services. On the other hand some evidence shows half of new customers that have used e-Banking for the first time, do not continue using this channel as an active customer. the development of new technologies in communications and information practices and the emergence of new services and increasing expectations and needs for banking services market caused our public and private banks to compete for providing new e-banking services.

E-banking in recent decade has been carried out with various implementations in our country by a variety of public and private banks. Now each bank more or less seeks for efficient use of this new technology. However, it seems the use of e-banking is still not institutionalized in the culture of our people, and customers still do not use this technology with trust for large financial transactions. The Central Bank of Iran observes that not many companies and organisations are taking advantage of e-business as penetration rate in e-business is still very low.

Iranian banks have made huge investments into e-business but this has not succeeded in changing the trend. According to BBC news 60 ‬percent of Iranians go to banks only to receive or pay cash to the banking network. Iranian banks talk about the spread of e-banking while Iranians spend a lot of time to pay the bills for water, electricity, gas, phone, or transferring money to other accounts and sometimes they stay in line for hours to receive or pay cash.