The Challenges of Technical Infrastructure in E- Banking

The internet is transforming the banking and financial industry in terms of the nature of core products and services and the way these are packaged, proposed, delivered and consumed (Sathye, 1999). This technological change has impacted many industries but one of the most impacted is the banking industry. To face the new challenge from competition, it is essential that banks have to be more efficient and that they have to explore new distribution channel which is less costly compared to the traditional brick and mortar bank. The current paper is an attempt to perceive the customers views on the adoption and non adoption of using internet banking (IB). The study found that the main hindrance in the adoption of IB is the security concerns that the consumers have. With the proper safety and security measures and educating the people on the importance of IB in its speedy delivery, IB will become the delivery channel of banking services.