Adopting internet banking services in a small island state: assurance of bank service quality

Abstract

PurposeThis paper aims to examine the factors affecting the adoption of internet banking services by domestic commercial banks in a sparsely populated small island.Design/methodology/approachBeing one of the smallest island economies in the world, North Cyprus was chosen as a case study to explore the factors that affected the penetration of internet banking services in North Cyprus over a two year period. The managers of 23 banks operating in North Cyprus were interviewed first in 2004 and later in 2006. Furthermore, the web sites of these banks were also examined both in 2004 and in 2006 in order to measure the progress made in adopting internet banking services between these periods.FindingsEvidence from survey studies and from banks' web sites indicated that banks in North Cyprus have been consistently moving towards providing internet banking services despite a very small potential market to share. In 2004, the majority of commercial banks claimed that the potential market was too small to adopt internet banking services in North Cyprus. Yet, in 2006 the same banks were in the process of introducing internet banking as an assurance to their customers that they would be able to maintain a competitive quality of service in the future, hence avoid losing their customers to the branches of foreign banks.Research limitations/implicationsThe implication for domestic banks is that if they wish to complete with foreign banks they must embrace internet banking.Originality/valueContributes to the literature on internet banking services in small islands.

Service Quality, Customer Satisfaction and Loyalty: The Moderating Role of Gender / Aptarnavimo Kokybė, Vartotojų Pasitenkinimas Ir Lojalumas Vartotojų Lyties Atžvilgiu

“…Jenkins (2007) discusses that local retail banks have started to adopt Internet banking services to reduce switching behaviors of their actual buyers to survive in the marketplace. However, inconveniences due to poor electrical infrastructure inhibiting the use of technology and technologybased services, such as Internet-and telephone-banking are among the problems of the banking industry in Northern Cyprus (Karatepe et al 2005).…”

Towards an analysis of "banking solutions" from the perspective of exporting companies in Brazil

“…The first is that it indicates the importance of bank efficiency as a key characteristic in banking business and furthermore that to increase efficiency, it is necessary to invest in new technologies (Jenkins, 2007). Second, we find that there is a delay in the export barrier related to the skills of human resources, which points to this problem moderating the relationship between clients and banks.…”

أثر المصرفیة الإلکترونیة على جودة الخدمة فی القطاع المصرفی المصری ( باللغة الإنجلیزیة)

“…From customer perspective, online services offer a lot of benefits such as enhanced control, ease of use, and reduced transaction charges (Scullion and Nicholas, 2001). Internet Banking makes operating a bank account simple and convenient (Jenkins, 2007). Problems with technical, legal security and privacy seem to be the most important things that may affect usage of Internet Banking (Pikkarainen et al, 2004).…”