A study on the impact of security framework on the development of internet banking

ABSTRACT As the usage of Internet becomes wide spread, nearly all banking activities are now quickly performed online. It did not take a long time to adapt using Internet banking, with the help of both technological opportunities used by banks and due to the nature of human. With the increase in number of users in a short period, this system has introduced new definitions for trust matters in banking. This research work mainly concentrates on the Internet Banking services in Turkey, with respect to security and ease of use. In what level does the current infrastructure of Internet banking encourages customers to perform banking operations through the Internet? In what levels do we have to suffer from usability difficulties against security fear? Would it cause paranoia that an endless patchwork of current Internet Banking tools exists aiming to block security gaps? How does it affect customers that every day a new precaution has to be faced with? In what level do bank customers satisfied from the security and usability infrastructure of Internet Banking? What is the adoption to the new and variant possibilities? The results of the study shows that, as the level of hardening in security increased by the bankers and new, but transient, precautions are introduced; a meaningful level of trust seems to be accepted by the users. Findings tell us that; when general security precautions are considered, with a rate of 80 percent, current security implementations taken by banks are welcomed by customers. A large percent of respondents find using Internet Banking is easy to use. The rank above average is 92 percent which denotes the belief of their internet bank is easy to use. Regarding the answer of whether there exists a potential seek for using same interface for all the banks they are registered, it is found that approximately one third of the respondents think that it will be beneficial to have a standard interface interconnecting all the banks that respondents are currently registered. It is the author's belief that; due to newly developed Internet fraud methods and as these methods become more wide spread in Turkey, all the personal banking operations will sometime be handled through a unified, single sign on, transaction based, secure, easy to use interfaces and possibly including hardware based solutions such as smart cards. IX