Dissertation on "Response of Consumer Behavior Toward E-Banking Applied in Riyadh Saudi Arabia"

Dissertation 21 pages (5831 words) Sources: 35

[EXCERPT] . . . .

Consumer Behavior Toward E-Banking Applied in Riyadh, Saudi Arabia

Banking services are characterized by high information intensive operations and this is especially true due to the effects of information and communication technology on the banking industry. Mobile internet banking is one of the fastest of the phenomenal growths in banking today. Banks are able to realize cost savings, reduction of branch networks and efficiency improvement through use of electronic banking services.

Presently banks are working to increase the absorption of applications of modern technology and to take advantage of the process of e-marketing with improved management of customer relations. As well banks are working on developing methods of protection and attempting to change the look and concept of dealing with the banks on the applications of electronic banking. This work intends to examine the ability of banks and financial institutions that are planning to enter the Arab market with the start of activating the liberalization of trade in financial services.

Significance of the Study

The significance of the study lies in the importance of electronic banking technology and the opportunity it represents to reduce costs and increase sales opportunities for banking services as well as the speed of transactions, the reduction of the duration of access to markets and the organization of more efficient management.

Statement of the Problem

The problem of the study is the small number of people who do transactions electronically. In addition, security, technical and legal obstacles associated with infrastructure, and the most prominent obstacles to the widespread use of online banking is done with regard to Internet service within the Kingdom itself, as the cost of the service is still high compared to most of the countries, and the service is slow compared to others, as a result of the mechanism provided by the service in the country, as well as the percentage of spread of internet use is still low compared with levels of education in the country and income levels.

Scope of the Study

The scope of the study has been identified to be domain specific in that the study focuses on identification of various electronic banking in the Kingdom of Saudi Arabia in general and to identify the key factors that may affect it. The geographic scope of the study is limited to electronic banking transactions on the city of Riyadh only. The time scale of the study resulted in the survey being limited to the current electronic banking.

RESPONSE of CONSUMER BEHAVIOR TOWARD E-BANKING APPLIED in RIYADH, SAUDI ARABIA

CHAPTER TWO -- LITERATURE REVIEW

The work of Jasimuddin (nd) reports that the majority of the banks in Saudi Arabia have making the provision of Internet services are lagging behind but that however the environment in the Kingdom of Saudi Arabia are "quiet favorable…for rapid development of Internet banking." (Jasimuddin, nd) the Kingdom is reported to have introduced Internet service on the basis of a Ministerial Degree of 1998 which includes the "substantial upgrading of telecommunications infrastructure" that is ongoing in Saudi Arabia. Additionally driving the e-banking in the Kingdom is that the majority of Saudi Arabians are computer literate with the majority owning a personal computer.

It is reported in the work of Ben-Jadeed and Molina (2004) entitled "The Emergence and Evolution of e-Banking in Saudi Arabia: The Case of Samba Financial Group" that the common motivation for banks to implement e-banking is to provide a faster, easier, and more reliable service to clients, to improve the bank's competitive position and image, and to meet clients' demands. E-banking may also provide other benefits." The creation of new markets and reduction of operational costs, administrative costs and workforce have become of primary importance for the bank competitiveness and it is believed that e-banking has the potential to bring about an improvement in this area. (Ben-Jadeed and Molina,, paraphrased) However, it is stated to be a "growing concern that e-banking is not yielding the anticipated results creating a gap between the actual returns and the proposed objectives and thereby losing a large amount of investment." (Ben-Jadeed and Molina, 2004)

The work of Ben-Jadeed and Molina (2004) investigates the implementation of e-banking at a Saudi bank and specifically 'Samba' one of the major banks in Saudi Arabia. Samba is reported to have opened for business in 1980 following the taking over of the two branches of Citibank in Riyadh and Jeddah. In the 1990s the Internet spread in Saudi Arabia with Samba beginning the development of an e-business platform and middleware application. The new platform made a requirement of the bank to once again upgrade its hardware facilities entirely with "very advanced and mature products." (Ben-Jadeed and Molina, 2004)

It is reported that the bank "at the front-end…inaugurated its e-banking products and services." Samba launched its first Internet initiative and specifically Samba.com which comprised static web content that provided existing and prospective clients with information concerning banking products and services. Samba launched Internet banking service for retail and corporate clients in 2001 and operated a short message service (SMS) used to update clients "via their mobile phones with their banking transactions." (Ben-Jadeed and Molina ) the bank is reported to have "furnished its clients with online national and international brokerage services, named Samba Tadawul and Samba Direct, respectively, as the first Saudi bank to offer such services." (Ben-Jadeed and Molina, 2004)

The e-banking Departments is reported as having two sections and specifically those of: (1) e-consumer with the consumer banking group; and (2) e-Corporate/e-Investment with the Corporate and Investment Banking Group. (Ben-Jadeed and Molina, 2004)

Each section is reported to handle the e-banking business development of its respective group and the needs of each group are transferred to the it Group for "technical feasibility and automation." (Ben-Jadeed and Molina, 2004) Reported is that Samba has a new e-business platform, a new middleware system, new internal application, upgraded hardware facilities, 247 ATMS, and 2,132 POS terminals in place. (Ben-Jadeed and Molina, 2004)

It is reported that the e-banking collaborative approach was externally imposed on Saudi Banks on SAMA and additionally SAMA is reported to have launched two new banking initiatives:

(1) Tadawul in 1999, which is a new system for trading, clearing and settlement of share among investors in the equity market, and (2) eTrust Center in 2002, a security system infrastructure for ebusiness transactions. (Ben-Jadeed and Molina, 2004)

SAMA has plans to launch more e-banking initiatives such as SPAN2, and SADAD, a modified version of SPAN with smart card facilities and a bill payment settlement and presentation system, respectively. (Ben-Jadeed and Molina, 2004)

The work of Sait, Al-Tawil, and Hussain (nd) entitled "E-Commerce in Saudi Arabia: Adoption and Perspectives" reports that modern Saudi Arabia represents "…a unique and convergent blend of social conservatism and technological prowess, a tremendous transformation from an isolated, desert land that it was over 50 years ago. Achieving this however has often mandated novel approaches, which strive to merge technology into the existing societal structure and avoid possible confrontations of interest.

The growth of the global Internet and its absorption into the mainstream Saudi society has arguably been the most significant of such endeavors." (Sait, Al-Tawil, and Hussain ) Saudi Arabia is reported to have been linked to the Internet for several years and wide scale public access to the world wide web first started in January 1999. The Kingdom is reported to have over the past ten years "taken measured but strong steps towards developing a diversified economy, with emphasis on developing its Information Technology sector. A core issue has been the introduction of robust eCommerce initiatives through out the country spanning both vertical Business-to-Consumer (B2C) and lateral Business-to-Business (B2B) market systems. As of the time of this study, these initiatives are still in the pipeline and haven't yet been fully achieved." (Sait, Al-Tawil, and Hussain, )

The work of Al-Ghaith, Sanzogni, and Sandhu (2010) entitled "Factors Influencing the Adoption and Usage of Online Services in Saudi Arabia" reports that the internet, one of the most successful innovations in the world, has created great opportunities as well as threats for organizations in various business and services sectors, compelling them (either willingly or reluctantly) to support their products or deliver their services 'online' using the Internet as distribution channel." Both public and private organizations worldwide are in the midst of realignment of their strategies so as to optimize the potential of online business and in overcoming the challenges presented to their method of business operation, service delivery and competitive edge in the use of online services. (Al-Ghaith, Sanzogni, and Sandhu, 2010, paraphrased)

Stated as the objectives of the online services are such as:

(1) cost containment through reduction in operating cost and increasing return on investment (ROI),

(2) raising the productivity and efficiency of the public and private sectors by making the service available at all times of the day;

(3) wider coverage by enabling the access to service from any location,

(4) providing the required information in a timely and highly accurate fashion, and (5) providing better… READ MORE

How to Reference "Response of Consumer Behavior Toward E-Banking Applied in Riyadh Saudi Arabia" Dissertation in a Bibliography

Related Dissertations:

Consumer Behavior From a Cultural, Social Research Paper

consumer behavior from a cultural, social, personal and psychological standpoint are analyzed in the context of globalized brands, social media and the counterbalancing effects of ethnocentrism globally. The implications of… read more

Research Paper 9 pages (3397 words) Sources: 6 Topic: Advertising / Marketing / Sales

---

Saudi Arabia Is a Large, Mostly Desert Research Paper

Saudi Arabia is a large, mostly desert country in the Middle East, occupying much of the Arabian Peninsula. Saudi Arabia is a middle income country if measured by per capita… read more

Research Paper 4 pages (1103 words) Sources: 4 Topic: Israel / Palestine / Arab World

---

Consumer Buying Behavior Research Paper

Consumer Behavior Research

The multi-generational aspects of buying behavior are significantly re-ordering the growth, structure and long-term potential of all industries. Implicit in multi-generational shifts occurring in markets is the… read more

Research Paper 6 pages (2231 words) Sources: 4 Topic: Advertising / Marketing / Sales

---

Thai Consumer Behavior Toward Online Games Multiple Chapters

Consumer Perceptions

Toward Personal Behavior Related To Playing Online Games

Conflicting concepts and concerns accompany the current billion dollars online game playing "business." Some consider the practice of playing games… read more

Multiple Chapters 19 pages (6548 words) Sources: 50 Topic: Literature / Poetry

---

Consumer Behavior and Dependence Article Review

Consumer Behavior - Dependence

Do advertising and sales allow production to drive demand or vice versa? If so, is this a bad thing? According to John Maynard Keynes' absolute income… read more

Article Review 3 pages (897 words) Sources: 1+ Topic: Economics / Finance / Banking

---

View 100+ more related papers  >>