Banking Transaction Research

CHAPTER 1 - INTRODUCTION

1.0 OVERVIEW

In past decades, any banking transaction needs to be done on a physical bank branch. However, with the fast-growing of technology and the changing in consumers need, e-banking has been introduced. The title of this research methodology is the concerns of using e-banking among public University students in Kota Kinabalu, Sabah.

E-banking is an electronic connection between banks and customers in order to prepare, manage and control the financial transaction. The e-banking services can be done via computer and mobile phone. The main purpose of this research is to figure out the reasons that make public University students feel hesitate to make use of e-banking since it is the newest delivery channel of banking services. The security problem, the Internet availability and the frequency of using e-banking and lack of information or knowledge are pointed out as the main problem issues in this research. The problematic issues will be determined by the proceeding of this research.

1.1 PROBLEM STATEMENT

1.11 The Concern of Security Problem

The concern of security problem is the challenges that oppose the e-banking. Security issues of e-banking can be referred as security risks that hinder the operation of the e-banking system. Security breaches usually fall into three categories, which are breaches with serious criminal intent, breaches of 'casual hackers', and also flaws in systems design or set up leading to security breaches.

The serious criminal intent happens in e-banking ordinarily is fraud, theft of commercially sensitive or financial information. This cause the customers have no confidence in making the transaction through e-banking. Beyond that, the "casual hackers" also brings the security breaches. They effect the defacement of web sites or causing web sites to crash sometimes. The hacker is the person who finds out weakness in the computer and exploiting it. They use Trojan horse, computer virus, computer worm and so on to attack the security system of the computer so that they can get the information that they want. Another technical that can damage the security system is spoofing attack (also known as phishing) to get the user names and passwords from the users. Others from that flaw in systems design or set up leading to security breaches which means that the genuine user seeing or being able to transact on other's accounts. This is one of the most serious threats as it involves stealing money and obtaining other benefits through the use of a false identity. However, while banks tend to have reasonable perimeter security, there is sometimes insufficient segregation between internal systems and poor internal security.

All of these security breaches have potentially serious financial, legal and reputational implications.

1.12 Internet availability and the frequency using of e-banking.

Accessibility is the ability of users to access information and services from the web that independent from many factors which include internet connections, environment conditions and user's abilities and disabilities. Internet availability or internet accessibility generally relates to the implementation of website content to maximize the ability of users with disabilities to access it. The web pages with disabilities might address many other issues such as low download speed and discoverability. Meanwhile, the web pages with abilities might address the least issues and enable users to use the web pages smoothly. Internet availability is somehow related to frequency using of e-banking. Internet availability might affect the frequency of using e-banking. The good internet availability such as high internet availability, internet coverage and internet speed can affect the satisfactions of the consumers or users of e-banking.

1.13 Lack of Information or Knowledge

Information is meaningful or useful data that provide answers to "who", "what", "where", and "when" question. Whereas, knowledge is an application of data and information, which is answered "how" question. The lack of information or knowledge can be defined as insufficient data provided and absence of awareness of using e-banking from users. The promotion of e-banking services always given the limited information and may not enough for consumers. Some of the promotion was done through newspaper and vouchers. With this limited space for inscription is the source of lack of information problem. Then, consumers are naturally insufficient on e-banking knowledge.

1.2 SCOPE AND OBJECTIVE

An e-banking or electronic payment system (EPS) is a system of financial exchange between customers and business people. The topic of our research is about the concerns of using e-banking among the students in IPTA. So, the purpose of this research project is going to identify the problems such as security risks, internet accessibility and the effectiveness of its services which has been faced by students when they are using e-banking. The main objective for the research project has included the following:

1. To investigate the user's level of confidence of the e-banking or electronic payment system (EPS) securities.

2. To identify the relationship between the internet accessibility and frequency of using e-banking.

3. To assess the effectiveness of information and knowledge of using e-banking.

1.3 SIGNIFICANCE OF STUDY

Nowadays, more and more banking activities such as transferring funds, paying bills checking the balance of saving accounts and others can be done by using e-banking. The customers can make a banking transaction at any places as long as the Internet is available. However, most of the public University students who have purchasing power and accessibility of e-banking did not utilize this service. This research methodology's main purpose is to figure out the concern of public University students in Kota Kinabalu Sabah on hesitate to use e-banking.

The problematic issues that point out in this research are security problems, Internet access and the frequency of using e-banking and lack of information or knowledge. This becomes the reasons of public university students are hesitating on using e-banking. The reason for the low usage rate of e-banking among respondents will be determined at the end of the research methodology. The improvement can be done due to research carried out. The usage rate