As the world is changing at an incredible pace, technology seems to be the key driver for these changes around us. Based on a study of technology and its uses over the recent few years, it is shown that it has saturated in almost every facet of our life including banking. Banks must take into account that the use of technology has become important to respond to any continuous change in customer requirements as the latter become aware of the latest technology. Today, the Internet has become one of the most requisite tools of modern technology.
When talking about the future of banking Internet Banking is the first things that come into our mind. In general, it is assumed that internet banking is latest technology in the banking sector and that it is going to change many electronic delivery channel services. The concept of Internet banking has been defined in many ways. Internet banking enables people to perform financial transactions on a secure website controlled by their bank or credit union.
We'll start our research by first defining Internet Banking. According to Pikkarainen, Karjaluoto, and Pahnila, (2004) internet banking has been defined as an internet portal where customers can make use of various kinds of banking services to perform financial transactions. Internet banking has targeted all customers to work further than restrictions. Currently, people are so engaged in their daily lives, that they do not find time to go to the bank to conduct their banking transactions. Thus Internet Banking allows people to carry out the majority of their banking transactions using a safe website, which is operated by their respective banks The internet banking services include:
Accessing account balances and transaction.
Electronic bill payment.
Funds transfer.
Requesting credit card advances.
Ordering cheques
Former studies on innovation flow have basically focused only on users or the difference between the user and non-user. Thus, in our study, we emphasize on the non-users' resistance to the acceptance of using Internet banking. Internet banking is seen to be the fastest growing service that banks offer in order to gain and maintain new customers (Moody 2002). However, customers' acceptance and assurance remain a primitive factor in ensuring the success of Internet banking.
Internet banking in Mauritius is a relatively recent fact. It is debated that Internet banking is of great importance to the banking sector of an emerging economy. In Mauritius, Internet banking became operational in 1997. Mauritius has a reasonably well-developed domestic financial structure and a growing offshore sector. Although Internet banking has grown rapidly, consumers are still reluctant to use it. According to Robinson (2000) half of the people that have used internet banking services will not become dynamic customer.
This study investigates the role of internet trust as a common form of technology and the extent to which it affects the adoption of internet banking in Mauritius. This paper is organised as follows: it describes the problem statement of the research followed by the aims and objectives. It then describes the research method. The research benefits, time plan and budget analysis are presented. And then concludes by analyzing the research implication.
PROBLEM STATEMENT
To determine why people do not use internet banking is the main issue for the research. This can thus lead to a major problem.
According to our research, the main problem related to Internet banking is people trust. The reasons for not trusting Internet banking may be of security problems, computer illiterate, time consuming, privacy risk and the necessity to have internet access. Users do not want to use internet banking as they lack trust in new technology which can be easily manipulated. The rapid growth in Internet banking has bring new features in making banking transactions, that is, banking transactions are made more easily and efficiently and that has reduced long queues in banks. Internet banking is seen to a very complex task to old person as they do not any knowledge of computer and the internet. Time consuming is another to be taken into consideration because to upload transactions on websites may take time and technical or connectivity problem may arise while performing banking transactions. Privacy risk may come up because many people want to have their financial matter to be kept in private and thus find it difficult to trust a fully mechanized system when dealing with financial transactions.
The security of internet banking is primordial while banking through the internet. The security of one's bank account is related directly to a great extent to one's security of computer including password and pin number. Computer hackers can easily get access to any person account through their password or pin number. Unauthorised access and criminal transactions may occur without one's knowledge and the time the bank statement is received it is too late. Moreover, many people are apprehensive of using internet banking because of proxy websites. These websites can easily get access to an account and crack the username, password and pin number.
The above statement is an initiative of how trust and the other related factors can cause problems for non users.
AIMS AND OBJECTIVES
The main aim of this paper is to research on the current position of internet banking in Mauritius, focusing on the perception of non users of online banking. The following are the objectives of the study:
To investigate on E-Banking system in Mauritius
To find out the views and opinions of non adopters of Internet Banking in Mauritius
To access the possibility of fraud in online banking system
To determine how internet banking has replaced the traditional way of doing transactions in bank
To gather data in order to assess how internet banking has a negative impact on people
METHODOLOGY
The research methods used to gather data for internet banking was both the qualitative and quantitative techniques because it helps us to gather data mainly from secondary sources and to analyse the current situation. For our secondary information we went through the websites of different banks of Mauritius and all over the world. We have also collected our information from different online articles and journals. Our target population was bank customers of different age groups and of different educational levels in both urban and rural areas across the country. We analyse profile of both user and non-user of internet banking and the internet banking situation in Mauritius
Purpose for using Qualitative Method
To go in depth into complexities and process
To find relevant variables which have not been identified
To evaluate past research so as to find new directives
To use interviewing, observation and focus group techniques to get the required data
Purpose of using Quantitative Method
To use survey to get opinions, to know the attitude and behavior of people with respect to Internet banking purposes and objectives
To use questionnaires to collect data according to the objectives of the research proposal
DATA FINDINGS
Figure 1.POPULATION FOR USER AND NON-USER OF INTERNET BANKING
Figure 2.REASONS FOR NOT USING INTERNET BANKING
BENEFITS OF RESEARCH
Based on the problem statement above, trust is the main problem for customers to use internet banking. Our target population for the research will be mostly all the customers in the banking sector.
When using Internet banking to execute transactions customers are often in doubt of whether they have properly perform their transactions and thus this research will provide for solutions that can be considered to avoid the problem of trust. This discomfort can be avoided by having a copy of the transaction proof of payment and safeguard it with the bank itself by the customer receive it. In addition, customers can follow some trouble-free protective actions, like not revealing their password and pin number to anyone, changing their password regularly and fixing antivirus software to ensure that internet banking transactions are secure and safe. Internet banking tutorials are available on the internet so that customers can get more familiar to it.
Generally, a secure online banking system can be ensured by banks by means of using security features on the web site (Stratford, 1999) or firewalls, routers, filtering, call-back modems, biometrics, encryption, smart cards, authentication and digital certification (Mukherjee and Nath, 2003). A strong positive influence on trust has been found with a regulatory control. Thus, banks must ensure appropriate regulatory controls and distribution of authentic information. Consistency and clearness must be used and communicated to plan strategic intentions. Strong regulatory control can reduce the opinion of opportunistic behavior by Internet banks.
TIME PLAN
GANTT CHART
Task Number
Task Name
Start (D/M/Y)
Finish (D/M/Y)
Duration (Days)
1
Decide Research Topic
22-Jan
29-Jan
8
2
Research Materials
31-Jan
5-Feb
6
3
Literature Review
9-Feb
26-Feb
18
4
Research Proposal (solution)
5-Mar
7-Mar
3
5
Discuss
8-Mar
11-Mar
4
6
Write
12-Mar
18-Mar
7
7
Review with team & revise
19-Mar
22-Mar
4
8
Final edit
23-Mar
27-Mar
5
9
Final
28-Mar
30-Mar
3
10
