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The impact of Internet banking on banks: A descriptive and evaluative case study of a large United States bank (LUSB) :

  • Electronic Banking


Banks have adopted Internet Banking during the past ten years. This descriptive and evaluative case study examined the adoption of Internet banking in six large banks and in one small bank in the northeastern states of U.S. The study surveyed the quality of service (QoS) of the websites of the banks that participated in the study with special emphasis to one large bank (LUSB). This study utilized a positivist methodology to investigate the phenomenon of Internet banking adoption and its impact on the core retail banking business. Internet banking strategies were aligned with the banks' core business based on the data from this study. The data from the study did not support the perception that Internet banking had adverse impact on retail banking. The study further investigated in detail the perception and extent to which Internet banking affected the financial performance, stakeholder value, internal processes, and intangible assets of one large bank. Online security and privacy were important to all banks and collecting of customer information was minimal. The banks in the study operationalized their Internet banking as a bundled centralized service rather than a distributed service. Adoption of emerging technologies such as, wireless and mobile services was still a low priority in both the large and small banks in the study.

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