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Keywords
Internet, Banking, Electronic commerce, Thailand, Consumer organizations
Abstract
Many Thai banks are currently implementing Internet banking. Banks that offer service via this channel claim that it reduces costs and makes them more competitive. However, many corporate customers are not highly enthusiastic about Internet banking. An understanding of why corporate customers do not accept Internet banking can assist banks to implement this self-service technology more efficiently. In-depth qualitative interviews with Thai firms suggest that security of the Internet is a major factor inhibiting wider adoption. Those already using Internet banking seem to have more confidence that the system is reliable, whereas non-users are much more service conscious, and do not trust financial transactions made via Internet channels. NonInternet banking users tend to have more negative management attitudes toward adoption and are more likely to claim lack of resources. Legal support is also a major barrier to Internet banking adoption for corporate customers.
Introduction
In recent years, the banking sector has been an interesting case for service innovation as it moves toward using the Web for commercial purposes through Internet banking. Internet banking allows customers to have direct access to their financial information and to undertake financial transactions with no need to go to the bank. ACNielsen (2002) found that Internet banking is expanding in many Asian countries, including South Korea, Hong Kong, Singapore, China, and Taiwan. Thai banks have followed worldwide trends in implementing self-service technology via the Internet, although as a still developing country, Thailand is slightly behind the more developed Asian countries.
From the banks' viewpoint, use of Internet banking is expected to lead to cost reductions and improved competitiveness. This service delivery channel is seen as powerful because it can retain current Web-based customers who continue using banking services from any location. Moreover, Internet banking provides opportunities for the bank to develop its market by attracting a new customer base from existing Internet users (Suganthi et al., 2001; Dannenberg and Kellner, 1998; Zineldin, 1995).
This is, however, merely theory so far. Things have not moved as quickly as some anticipated in turning this into reality in the banking sector. Some research shows that most consumer banking customers rank Internet banking as less important than other technology-based delivery channels, such as...