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INTRODUCTION

The Internet has emerged as the dominant medium in enabling banking transactions. Adoption of e-Banking has witnessed an unprecedented increase over the last few years. Twenty per cent of Internet users now access online banking services, a total that will reach 33 per cent by 2006, according to The Online Banking Report. By 2010, over 55 million US households will use online banking and e-Payments services, which are tipped as "growth areas". The popularity of online banking is projected to grow from 22 million households in 2002 to 34 million in 2005, according to Financial Insite, publisher of the Online Banking Report newsletter. Developing alternative channels for retaining customers as well as for attracting new ones is very important to financial institutions (Kimball & Gregor, 1995; Thornton & White, 2001). For this reason, financial institutions offer new banking channels to their customers, as the technology adds new dimensions to the classic banking systems (Eriksson & Nilsson, 2007). For example, over the last few years, self-service technologies have replaced the need for face-to-face interaction between banks and customers (Eriksson & Nilsson, 2007).

Electronic banking uses computer and electronic technology as a substitute for checks and other paper transactions. E-Banking is initiated through devices such as cards or codes to gain access to an account. Many financial institutions use an automated teller machine (ATM) card and a personal identification number (PIN) for this purpose. Others use home banking, which involves installing a thick client on a home PC and using a secure dial-up network to access account information and still others allow banking via the Internet. In industrialized countries, the use of electronic channels to manage one's wealth has increased. From the customers' perspective, electronic payments instruments and channels have made money impersonal and virtual (Singh, 2004). In a survey of e-banking customers, 76% persons without disability with a household income above $50,000 said they used Internet banking (Singh et al, 2009).


  

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