Effects of User’s Perceived Security on their Usage of Online Banking and e-Payment Facilities

912 Words 4 Pages
With the innovative changes in everyday life since the creation of the internet, the banking sector is no exception. The creation of value-added services through the internet such as online transactions and online banking, the traditional landscape of banking has been transformed to new lengths. Day to day banking and similar financial transactions through the digital medium have positively affected the live of many due to the derived benefits such convenience to complete financial transactions at their leisure.
Banking institutes are often associated with having high levels of trust in relation security and privacy factors with regard to its physical environment. However this perceived notion has yet to be associated to the digital
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As a result private and commercial users of such facilities are required to place more emphasis on safeguarding their financial well-being. Breaches in confidential data security and financial theft through online banking facilities are of major concern to financial institutes. Concerns of data security and identity theft are of utmost importance given the increased trend towards mobile banking.
Continuity and evolution of online banking services depends on financial institutes ability to convince its users that the same or similar security mechanisms in relation to the physical banking setting applies to the digital realm. As a result there is a need for financial institutes to create a balance between security, trust as well as usability in relation to online banking facilities. Consumers’ trust has been identified as a vital element for the success of electronic banking. Due to the uncertain nature perceived by online banking users, such issues affect trust; particularly security and privacy of data have an impact on the development of electronic banking services (Maijala, V. (2004)).
The hype and excitement one feels when purchasing one feels when purchasing products online is often diminished when payment is about to be made largely due to their concerns

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