Research Topics: Standard Chartered Bank Essays

Thesis

Review of related literature Introduction This section of the study primarily focuses on the different researches and other literatures that focused on several aspects that will help with the progression of this study. With the topic mainly concerning on the advantages and disadvantages of E-banking to Hong Kong banks, the paper’s main aim is to determine the advantages and disadvantages of E-banking to Hong Kong banks.   Growth in E-commerce Growth in mobile commerce is likely to be driven by alliances between banks and telecommunications companies. Both parties have particular strengths which if brought together can add considerable value. Banks have a banking license, credit verification skills and an established retail network. Mobile operators provide a modern brand image and the infrastructure of a mobile network. Both have a large customer base upon which to draw. While some companies have made public their objective to provide financial services when restrictions on the allocation of banking licenses are lifted, others believe that the partnership route is the way forward. So far, banks have taken a cautious approach and built their mobile capabilities for small numbers of customers on a trial basis. They now face the challenge of scaling up the infrastructure to cope with larger volumes of users. Abbey National, for example, offers e-Banking via the Genie mobile portal, which can be accessed by wireless application protocol (WAP) phones over any service network. The bank’s strategy is to develop partnerships that enable it to offer electronic banking across all technology platforms. These alliances offer customers the security of dealing with an established brand, which can be significant in building the necessary trust for mobile banking to really take off ( 2002).   E-banking Predictions about the market penetration of three important aspects of banking have generally been far off the mark. Starting at least three decades ago, industry analysts and bankers predicted that electronic payments would produce a check less society within, at most, two decades. Over the past three decades, check volume has risen substantially. In contrast, the extent of home banking seems to have fallen far short of the typical predictions for it. Similarly, the advent and rapid growth of automated teller machines (ATMs) gave rise to predictions that they were the vanguard of a major shift toward electronic banking (2003). The shift toward using ATMs was envisioned to involve their providing many additional services, such as deposit-taking and acceptance of loan applications and displacing physical branches and paper-based payments. However, despite the continued rapid expansion in the number of ATMs, their use has overwhelmingly been confined to dispensing cash and occasionally providing account balances (2003).Ironically, by bringing new security and convenience to getting cash, technological advances in ATMs probably retarded the adoption of electronic banking. Electronic banking is one of the first things that come to mind when one thinks about the future of banking. It is generally assumed that electronic banking is new and that it will replace or supplement many channels of delivery of retail banking services. The term electronic banking as used here refers to any banking activity accessed by electronic means. It includes ATMs, automated call centers, digital cash, Internet banking, screen telephones, and so on. These channels of delivery can be used for presenting and paying bills, buying and selling securities, transferring funds, and providing other financial products and services (2003).   Electronic banking can be used for retail banking and business-to-business (B2B) transactions, as well as for facilitating large-dollar transfers. Equally important, electronic banking is a worldwide phenomenon. As the term is used, it involves transactions. Some institutions only offer web sites that provide information about services offered but do not allow for transactions. These would not be covered under the definition of electronic banking. However, web sites that are transactional are considered electronic banking. Electronic banking and the Internet in general are forcing a shift in the way banks and other businesses organize and the way they think of themselves. In recent years, banks have made their services increasingly convenient through electronic banking. Electronic banking uses computers to carry out transfers of money.   For example, ATM enables bank customers to withdraw money from their checking or savings accounts by inserting an ATM card and a private electronic code into an ATM. The ATMs enable bank customers to access their money 24 hours a day and seven days a week wherever ATMs are located, including in foreign countries. Banks also offer debit cards that directly withdraw funds from a customer’s account for the amount of a purchase, much like writing a check. Banks also use electronic transfers to deposit payroll checks directly into a customer’s account and to automatically pay a customer’s bills when they are due. Many banks also use the Internet to enable customers to pay bills, move money between accounts, and perform other banking functions. A shift is taking place from vertical integration to virtual integration.  Banks and other financial intermediaries must realize that they are in the financial information industry. The Internet makes it possible to bring both customers and suppliers together to share critical business information (2003). E-banking helps banks relay and show to their clients how good their services are and that the services they offer are of better standards. Through E-banking the company can show the clients that they are better than competitors and can give them satisfaction guaranteed.   Benefits and fears about E-Banking Electronic banking technologies refer to all the financial activities involving electronic media such as ATMs, debit cards, direct deposit, direct payment, smart cards, and computer banking. The category of electronic banking includes various technological innovations that are currently at different diffusion stages. For example ATMs have been in the market over 30 years, whereas computer banking was introduced relatively recently. Temporal diversity within the category of electronic banking technologies provides an opportunity to explore the impact of communication on consumer adoption of technological innovations at different stages. Recent technological changes in the financial market have altered the nature of consumer interactions with the providers of financial services, reducing the importance of physical location and face-to-face interactions (2002).   Benefits of electronic banking technologies include convenience and cost savings. Using these electronic banking technologies, consumers can conduct fast and convenient financial transaction activities and obtain their account information without direct face-to-face interaction with a customer representative. For financial institutions, transaction cost of electronic banking is only a fraction of the expense for regular teller banking. Because check processing costs approximately 1 billion per year, low cost is also an attractive incentive for governments to embrace electronic banking. As alternative electronic banking options become available, an increasing number of consumers are expected to use them. However, both the financial industry and government seem to face consumer resistance to electronic banking. Paper checks still dominate the U.S. payment system and the majority of consumers prefer to conduct their banking business in person as opposed to using electronic banking technologies (2002).   Learning an unfamiliar practice of banking using technology as opposed to face-to-face interactions may incur some cognitively effortful costs. Furthermore, for those consumers who perceive electronic banking as complex and unreliable, using electronic banking may likely present substantial security and financial costs concerns. Finally, the loss of human contact may likely outweigh the increased benefits of electronic banking if consumers strongly prefer personal interaction to electronic formats.  In fact, it has been reported that many consumers are not well informed about the benefits of electronic banking innovations and perceive security risks regarding financial transactions via electronic media. Therefore, creating positive awareness among potential adopters by communicating the increased benefits and reduced costs of electronic banking becomes critical in the successful diffusion of electronic banking innovations. Generally, the print media is the most widely used by marketers to promote consumer adoption of electronic banking innovations. Alternatively, information about electronic banking can be delivered through conversations with salespeople, employees at government/consumer agencies, and family and friends ( 2002).   The banking system in Hong Kong Hong Kong is doubly exposed to China, both through substantial cross-border lending of its banks and because it’s economic growth is almost entirely dependent on its role. The failure of China’s domestic banking and enterprise reforms would not only reduce China’s growth but also its foreign trade, which would adversely affect Hong Kong’s real economic growth and perhaps the performance of Hong Kong banks. The primary role of banks and other financial institutions in a market economy is to serve as an intermediary between savers and investors and to facilitate payments between economic units. Banks fulfill their intermediary function by taking deposits and lending funds to investors. Individuals, in theory, could provide their funds directly to entrepreneurs starting new businesses or to establish firms that wished to expand. In practice at least four drawbacks exist to such direct investments, all of which banks can overcome, at least in part. First, the scale of many investment projects is sufficiently large that it requires the pooling of funds of many small savers. Banks provide an efficient mechanism for pooling, obviating the need for firms to raise funds directly from a large number of savers. Second, some savers may want their funds back relatively soon while investors’ projects are typically long term (1998).  Banks can take short-term deposits from a large number of individuals and lend some of them long term and still stand ready to meet the demand for withdrawals on the part of some depositors. Third, savers may regard placing all their funds in a single or small number of investments as too risky (1998).  One thing being looked upon by Hong Kong banks is the use of E-banking. E-banking can be said to be the offspring of E-commerce. This kind of banking has different kinds of benefits, using it can change the way banks serve clients and perform their different duties.   Consumer behavior in internet banking In comparing the three phases of consumer behavior, namely the pre purchase period leading to choice, the act of consumption itself, and the post purchase period, the active period is that of consumption, while the reactive periods are those of pre-and post consumption. The reason for the passive nature of the first and last periods is that the consumer does not actively operate on the product or service in these segments. Rather, the activity of interest is evaluation, namely evaluation of product/service cues in decision-making/choice and evaluation of performance outcomes in the post purchase time frame. Thus, the consumer is reacting to two kinds of information memory traces and new cues in the pre purchase period and observed outcomes in the post-period. For purposes of discussion, however, this distinction will be relaxed somewhat so that reactions to action itself can be entertained as another valuation in consumption (1999).   Direct observation takes a back seat to the influence of media because consumer behavior is often motivated not by a desire to emulate the lifestyle group to which the consumer currently belongs, but rather by the desire to emulate one that he or she aspires to join. Consumers are oriented toward a status definition representing an aspirational social definition. It seems clear that if any one cell in the consumer value typology is a candidate to be truly other-oriented, status is a frontrunner for the honor. However, that blithe assumption does need to be qualified. As with any form of consumption, the true value must come home to roost. Though admittedly a solipsistic perspective, ultimately the net effect of any consumer behavior must be assessed in terms of how it is perceived by the consumer himself (1999). There are many bases for market segmentation strategies. Segmentation should not be limited to one variable and should be based on multiple dimensions. Behavioristic segmentation divides buyers on the basis of need satisfying benefits derived from product use, the rate of product usage, the degree of brand loyalty, and an understanding of consumer readiness to purchase the product. Psychological segmentation is composed of personality, motivation, and lifestyle variables a psychographic variable can be used alone to segment a market, or it can be combined with other market segmentation variables such as demographic measures or geographic markets. There is also occasion-based segmentation where a situation will drive product preference and selection such as a special family event or a holiday.   Market segmentation and lifestyle are two related concepts that are potent strategies for satisfying consumer preferences and organizational objectives. Lifestyle analysis involves identifying consumers’ activities, interests, and opinions. Combining both strategies, a peanut butter manufacturer may direct its appeals to families with children and whose lifestyle reveals them to be theme park visitors and heavy video renters (2003). Consumer behavior is affected by many things and by many situations. It is changed a certain events or difficulties people encountered. In internet banking people expect the service to be faster than the usual. They believe that as technology changes; their lives get better. Before engaging in internet banking consumer gets the details about internet banking and the difficulties encountered. Methodology After gathering and discussing literature that gives additional knowledge and understanding of the study the next thing to do is gather data and the way it will be gathered will be discussed in this chapter. This chapter will discuss the methods used and done in the study which helps in gaining the needed information. This chapter will discuss about the research method; the chapter will then discuss about sampling and sampling technique. Furthermore this chapter will discuss the method of data collection; this chapter will discuss about validation of the instrument; lastly this chapter will discuss about the statistical treatment of data and the statistical formula used in the interpretation of data.   Research method The research process onion of (2003) will guide the researcher in order to come up with the most suitable research approaches and strategies for this study. The research process union will be used as a basis to show the researcher’s conceptualization of the most applicable research approaches and strategies that will lead to the gathering of the necessary data needed to answer the research questions stated in the first chapter, as well as to arrive to the fulfillment of this research undertaking’s objectives. The research will use the descriptive method to determine the advantages and disadvantages of E-banking to Hong Kong banks. Descriptive research tries to explore the cause of a particular event or situation. It also wants to present facts concerning the nature and status of a situation, as it exists at the time of the study ( 1994). In addition, such method tries to describe present conditions, events or systems based on the impressions or reactions of the participants of the research. Basically, a descriptive research utilizes observations and surveys. For this reason, the study calls for the use of this approach because it is a goal of the study to gather first hand information from bank managers and other people knowledgeable about risk management and financial stability. This way, the study will be able to make comprehensive conclusions and attainable recommendations at the end of discussion.  The descriptive approach is also quicker and more practical in terms of financing.   Moreover, this method will allow for a flexible approach, thus, when important new issues, probabilities, and questions come up during the duration of the study, a further investigation and confirmation may be allowed. Lastly this type of approach will allow for decisions to drop unproductive areas of research from the original plan of the study. The choice and design of methods are constantly modified during data gathering based on continuing analysis. This will give way for creation of an investigation of important new issues, concerns, probabilities and questions as they arose. In addition, this study also employed partly qualitative research method, since this research intends to find theories that would explain the relationship of one variable with another variable through qualitative elements in research. These qualitative elements do not have standard measures; rather, they are behavior, attitudes, opinions, and beliefs. The qualitative research is described as multi-method in focus, involving an interpretative, naturalistic approach to its subject matter. This means that a qualitative researching procedure acts on studying things in their natural settings, attempting to make sense of situations, or interpret events in terms of the meanings people bring to them.   Sample and Sampling Technique                                                                                             The respondents of the study came from the different banks mentioned from Hong Kong. Due to time constraint and also, for the convenience of the researcher, only thirty (30) respondents were considered for the study. The convenience sampling technique was imposed in the study to pick up the thirty respondents, mainly because the availability of the respondents from the different banks was considered. This part of the study is important because the most important data needed to fulfill the objectives and aims of this study will only be supplied by the respondents from Hong Kong banks like HSBC, Standard Chartered Bank (SCB) and Hang Seng Bank (HSB).   Data Collection Method to use                                                                                       In gathering the data needed in this study a survey using questionnaire and interviews that will be conducted by the researcher will be utilized. A questionnaire will be constructed and administered to the respondents via personal interviews, as mentioned earlier the respondents of the study came from the different banks mentioned from Hong Kong. The respondents will be requested to answer the inquiries in the survey-questionnaire, each grading the statements using the Likert scale.  The equivalent weights for the answers will be: Range                                     Interpretation             0.00 – 1.49                                          Strongly Agree 1.50 – 2.49                                          Agree 2.50 – 3.49                                          Undecided 3.50 – 4.00                                          Disagree            4.50 – 5.00                                          Strongly Disagree             In the Likert technique, a set of attitude statements are presented, where subjects of a study are asked to express agreement or disagreement using a five-point scale. The degree of agreement is given a numerical value ranging from one to five, thus a total numerical value can be calculated from all the responses. (2004)   Primary and secondary data collection The primary source of data will come from a survey using questionnaire and interviews that will be conducted by the researcher. The primary data frequently gives the detailed definitions of terms and statistical units used in the survey. These are usually broken down into finer classifications. The secondary source of data will come from research through the internet; books, journals, related studies and other sources of information. Acquiring secondary data are more convenient to use because they are already condensed and organized. Moreover, analysis and interpretation are done more easily.   Validation of the Instrument For validation purposes, the researcher pre-tested a sample of the set survey questionnaires. This was done by conducting an initial survey to at least five respondents from the different banks from Hong Kong. After the respondents answered, the researchers then asked them to cite the parts of the questionnaire that needs improvement. The researcher even asked for suggestions and corrections from the respondents to ensure that the survey-questionnaire is effective. Automatically, these five respondents were not included as respondents for the study.   Data analysis             Data gathered will be analyzed through frequency distributions. These will give way to reviewing the data categories and the number of referrals in each category. With relation to data analysis, the indicators that will be used in evaluating the study include the age bracket the respondent belongs to; the social status; the educational attainment of the respondents; the position of the respondents in the company or in the banking institution and the number of years the respondent served as an employee of the company. This can help in determining the course of the study and why does the question in the study have those kinds of answers. Statistical Treatment of Data             After all the data from the researcher-made questionnaire were collected, the following statistical formulae will be used: 1.     Percentage – to determine the magnitude of the responses to the questionnaire.             n % = ——– x 100         ;           n – number of responses             N                                 N – total number of respondents   2.     Weighted Mean             f1x1 + f2x2  + f3x3 + f4x4  + f5x5 x= ———————————————  ;                         xt   Where:           f – weight given to each response                         x – number of responses                         xt – total number of responses The researcher will be assisted by the Statistical Package for the Social Sciences (SPSS) in coming up with the statistical analysis for this study. In analyzing the research, graphs will be needed to give a more detailed and illustrative presentation of the research. The graphs will be used to show the differences in the ideas of the respondents. Such things will be done to help in making sure that the objectives in conducting the research will be done and a good conclusions and recommendations will be accomplished.  Presentation, interpretation and analysis of data   After data collection the next thing to be done is data presentation, interpretation and analysis. It is important that the research output be presented in an organized, coherent and understandable manner so that those who will read the research can propose important decisions about the results of the study. In preparation of the research output the things that should be considered includes the purpose, target reader or target end-user, clarity, appropriate words style, graphic aids. Purpose means the desired effect or the desired outcome of something, it must be clear whether the purpose of the research is to inform, to criticize a previously done investigation about a certain issue, or to propose policies or strategies, It must be assured that the problem is well addressed from start to end.   Type, length, nature of the data being discussed should be relevant to the purpose of the study. Target reader / end–user are those who the study wants to reach and attract to read the research. These are one of the reasons studies are made. They get knowledge from the studies and use it to create related and better studies Contents and presentation of the data should be pertinent to the needs of the target reader or end-user. The data should be easily understood and concise for the reader to be attracted to it. The data should be well presented to coincide to the needs of the customer. The data should make the consumer learn from it. Clarity is the precision of data. Using words that are specific, measurable, and descriptive will help in illustrating statements and ideas. Logical data organization and a sound interpretation add clarity to a report. In relation to this, n making conclusions and recommendations there should be relative data at hand to make the course of action doable. Appropriate words are words that give more meaning to a statement, appropriate words help to give proper description to the data. Concepts or words with inconsistent meaning should be shunned. Using jargons or languages that are meaningless should be avoided. In making the research, its language should be familiar to the reader or it must be used commonly in day to day business in the field of the reader. Technical terms should be defined since not all readers understand these words. The study should avoid words which appeal to emotions, being bias, and moral judgment.   Style is way the study is presented. The study should be clear, readable and understandable. The study should have consistency. It should have correct grammar, its spelling should be correct, it should have proper punctuation, it should compose of short and simple sentences. It should be presented in a manner a reader will be attracted to it. To help enrich the analysis of the data, direct quotation from the answers of the respondents will be beneficial. The discussion can be easier if a section is subdivided into subtopics based on the objectives or hypothesis of the study, to focus on the analysis. Graphical aids are one way to effectively send the message of the study. It can be used as an integral or supplemental part of the text. Graphical aids should be clear and easily understood by the reader. The data should be accurate to prevent miscalculations and misinterpretations. Graphical aids include tables, graphs and charts. Charts can either be a pie chart, vertical bar chart or line bar chart.   This chapter intends to discuss the information acquired from the survey and interview done for the research. The main objective of the study of this study is directed towards finding out the advantages and disadvantages of E-banking to Hong Kong banks. Primary research and secondary research was used for this study. Primary research was done using questionnaire; the questionnaire was be given to the participants, which compose of bank managers and other people knowledgeable about risk management and financial stability. The questionnaire had two sections: the first part intended to acquire the demographic profile of the participants, and the other section comprised of a set of attitude statements that intends to determine the level of agreement or disagreement using a five-point Likert scale. This chapter has been divided into two parts. The first part intends to give information about the respondents particularly with regards to their age, gender, civil status, educational attainment, and length of service in their industry. This part takes a look at the reliability of the respondents. The second part intends to give information about the ideas of the respondents with regards to the advantages and disadvantages of E-banking to Hong Kong banks. In this part answers to the research questions will be given. Afterwards analysis of the results will be done. This part takes a look at the results and what it implies within the study. Part 1 Presentation of Demographic Data In this part of the study, the general profile of the respondents shall be discussed. Initially age of the respondents will be given attention. The participant’s age was divided into different groups. The groups include 52 up; 46 to 52; 39 to 45; 32 to 38; 25 to 31; and 18 to 24. The succeeding figure will give the response of the participants.   Figure 1 Percentage distribution of respondent’s age The first figure shows that 44% of the respondents were those at the age level of 39 to 44. This might be reflected by the fact that most of the respondent’s positions in a company were managerial positions and to attain that position requires a substantial amount of working experience. To attain a managerial position someone must not only be experienced but matured enough for the endeavor. The figure also showed that 22% of the respondents were those at the age level of 25 to 31. Moreover the first figure showed that 16% of the respondents were at the age level 46 to 52. The figure showed that 11% of the participants were at the age level of 52 and above.  Lastly the figure showed that 7% of the respondents were at the age level of 25 to 31. Getting information from an older person gives some assurance that the information received came from the experience of the person.   Older persons can relate information according to what they experienced. That is why most of the respondents were aged 39 to 45, within this age bracket are those who learned and gained a lot of experience from school, previous and current work. They are more mature and full of ideas. This age bracket is those who are well on their way on the corporate ladder, they are soon to be promoted or may have been promoted due to their good performance. They have a bright future ahead of them, their ideas may be new but it can revitalize the company. Figure 2 Percentage distribution of respondents ‘Gender The second figure shows that more than half of the respondents were male; they were 70% of the total respondents. 30% of the respondents were female. Male employees are considered to be more active and should be doing the hard work. Most male employees are the company’s muscle they usually are the moving force in the company. That is why most men are assigned to do field works. This shows that since most of the respondents are male, they tend to be more of the ones who deal with people through personal conversation; they can be the ones who can prove or disprove the problem through their experiences in dealing with people. Men are more firm in their decision and they are more persistent in dealing with different kinds of people.    Figure 3 Percentage distribution of respondents’ civil status   The third figure shows that almost half of the respondents are married; they were 41% of the total number of respondents. 27% of the respondents were separated. 22% and 10% were divorced and single accordingly. Most of the respondents are married and had gained a lot of maturity and experience. Married persons are more mature than those who are single. In getting the necessary information it is important to ask persons who are more maturity to prevent being misled.  This proves that most of the respondents were mature enough and experienced enough to prove or disprove the problem.   Figure 4 Percentage distribution of respondents’ Educational attainment The fourth figure shows that most of the respondents attained college degree, more than half of the respondents or 72% of the total number of respondents were college graduates. 18% of the respondents have finished their Masteral Curriculum. 10% of the respondents had a Doctorate degree. The respondents should be educated well to give the necessary information. Education of a person is an important factor in considering if the information taken from a person is useful or not for the study. With more education acquired by these persons, more experiences and knowledge can be attributed to them. This can be benefit the study and the information needed.  This shows that most of the respondents were well educated and can be relied upon to give exact answers to the questions. This also shows that the respondents were well experienced and well learned of what the internet can or cannot do. Figure 5 Percentage distribution of respondents’ currently used bank The fifth figure takes a look at the banks the respondents prefer the most. The third figure shows that most respondents prefer the services of HSBC. They were 40% of the total number of respondents. Some of the respondents prefer the services of Hang Seng Bank. They were 33% of the total percentage of the respondents. A small group of respondents prefer the services of   Standard Chartered bank. They were 27% of the number of respondents. This shows that the respondents liked the services of HSBC and they think that the services of HSBC are better than the other companies. Figure 6 Percentage distribution of how the respondents knew internet banking The sixth figure takes a look at how the respondents came to knew of internet banking. Majority of the respondents or 40% of the total number of respondents came to know of internet banking thru Bank leaflets. Some of the respondents came to know about internet banking thru the website of the different banks. They were 30% of the total number of respondents. Other respondents came to know about internet banking through TV advertisements.  They were 17% of the total number of respondents. The smallest group of respondents came to know about internet banking through Internet Advertisements. They were 13% of the total number of respondents.  The results show that most people came to know of internet banking through bank leaflets. The respondents can easily see the leaflet in a bank and when they get one they get to be informed about internet banking. People also came to know of internet banking when they use the internet. They see information about it through the banks’ websites and through advertisements in the internet.   Part 2 Ideas of the respondents In this part of the study the responses of the respondents will be presented and be given attention and analysis. All of the respondents’ responses are based on whether they agree, disagree, strongly agree, strongly disagree, or neutral/undecided with the questions stated regarding the advantages and disadvantages of E-banking to Hong Kong banks. The participants’ responses are vital and much needed to achieve the objectives of the study. To achieve the objectives is to get the necessary and reliable information regarding the advantages and disadvantages of E-banking to Hong Kong banks.  The participant’s responses after being put in an organized conclusion will give the necessary information to find a logical solution for the study’s problem; it can also assist in providing a reachable recommendation and course of action. Such responses will be represented by figures or graph to make it clear and to achieve greater understanding. Lastly these graphs helps in making the study more visual oriented for greater appreciation by the reader. Figure 7 Percentage distribution of the survey results of the eighth question The eighth question asked the respondents if they believe that the internet banking will make it easier for them to conduct their banking transactions. Majority of the respondents agree with the question they were 50% of the total number of respondents. A group of respondent strongly agrees with the question. They were 30% of the total number of respondents. A part of the respondents are neutral or undecided on the first question. They were 20% of the total number of respondents. The respondents believe that internet banking helps in making the transaction with banks easier. They think that internet banking will help in solving their problems on banking and it will help them in solving the banking woes they have. Figure 8 Percentage distribution of the survey results of the ninth question The ninth question asked the respondents if they believe that E banking helps in making clients save time from visiting bank branch to handle banking activities without having to wait for the bank staff at service counter Majority of the respondents agree with the question. They were 43% of the total number of respondents. Another big part of the respondents strongly agree to the first question. They were 37% of the total number of respondents. A part of the respondents are neutral or undecided on the first question. They were 20% of the total number of respondents. The respondents believe that with the use of e- banking time will not be wasted. They can transact their business with banks without thinking about the different activities that they have to go through in banks. They also don’t have to waste some of their time in going to banks and go through long lines. They also don’t have to worry about waiting for bank staff at service counters if the staffs are attending to other people or are busy doing something else. Figure 9 Percentage distribution of the survey results of the eleventh question The eleventh question asked the respondents if they believe that the Internet Banking allows them to manage their account 24 hours a day from anywhere. Majority of the respondents agree with the statement. They were 37% of the total number of respondents. A group of respondents strongly agree with the statement. They were 33% of the total number of respondents. Another group of respondents are undecided or neutral with the statement. They were 30% of the total number of respondents. The result shows that the respondents believe that internet banking is helpful and reliable in managing their account.   It also shows that internet banking helps them manage the account they have 24 hours a day without worrying about the different problems they might face. This shows that internet banking is vital for people since people can use it whether they are home or in some other place. They don’t have to look for the places where the bank is located; people can just surf the net to transact business with the bank and they don’t have to leave the comfort of their homes just to transact. Figure 10 Percentage distribution of the survey results of the twelfth question The twelfth question asked the respondents if they believe that E- banking is easy to learn. Majority of the respondents disagree with the question they were 47% of the total number of respondents. A big part of the respondents strongly disagreed with the question. They were 30% of the total number of respondents.  A little part of the respondents was undecided with the question. They were 23% of the total number of respondents. The respondents don’t believe that E- banking is easy to learn. They think that this may be a source of problem for the banks in Hong Kong. They think that not all people can easily learn how to use E-Banking.    The respondents believe that not all clients have every time access to computers and the internet. Some clients make use of internet café’s and shops to use the internet. Some of them might be familiar or are having difficulties with this new technology. It may take them longer time to practice and be familiarized with internet banking.  They might have a few hesitations on what button to press to operate the technology. Figure 11 Percentage distribution of the survey results of the 23rd question   The twenty-third question asked the respondents if they believe that E- banking helps in keeping data safe. Majority of the respondents disagree with the question they were 60% of the total number of respondents. A big part of the respondents strongly disagreed with the question. They were 30% of the total number of respondents.  A little part of the respondents was undecided with the question. They were 10% of the total number of respondents. The respondents don’t believe that data owned by clients and banks are safe when e- banking is used. The internet can be a dangerous place for files to be transmitted or kept. It can be easily corrupted by different people. Banks have many kinds of files and when it is placed online some unscrupulous persons might attempt to steal it for their own satisfaction or need. Although there are certain soft wares and programs that can be used to block unauthorized transactions this may not be enough for people who already has a great knowledge in taking other people’s data through the internet.   Analysis of Data The respondents believe internet banking gives them advantage.  The respondents believe that internet banking helps in making the transaction with banks easier. They think that internet banking will help in solving their problems on banking and it will help them in solving the banking woes they have. The respondents believe that with the use of e- banking time will not be wasted. They can transact their business with banks without thinking about the different activities that they have to go through in banks. They also don’t have to waste some of their time in going to banks and go through long lines. They also don’t have to worry about waiting for bank staff at service counters if the staffs are attending to other people or are busy doing something else.   The respondents believe that internet banking is helpful and reliable in managing their account. It also shows that internet banking helps them manage the account they have 24 hours a day without worrying about the different problems they might face. This shows that internet banking is vital for people since people can use it whether they are home or in some other place. On the other hand the respondents don’t believe that E- banking is easy to learn. They think that this may be a source of problem for the banks in Hong Kong. They think that not all people can easily learn how to use E-Banking.  The respondents don’t believe that data owned by clients and banks are safe when e- banking is used. Banks have many kinds of files and when it is placed online some unscrupulous persons might attempt to steal it for their own satisfaction or need. Credit:ivythesis.typepad.com

Thesis

Review of related literature Introduction This section of the study primarily focuses on the different researches and other literatures ...

E-banking to Hong Kong banks

Review of related literature Introduction This section of the study primarily focuses on the different researches and other literatures that focused on several aspects that will help with the progression of this study. With the topic mainly concerning on the advantages and disadvantages of E-banking to Hong Kong banks, the paper’s main aim is to determine the advantages and disadvantages of E-banking to Hong Kong banks through these appropriate conclusions and eventually recommendations can be made. The literatures presented will come from books, journals, and reports that are deemed to be helpful in the advancement of awareness concerning the subject.   Banking Banking is the business of providing financial services to consumers and businesses. The basic services a bank provides are checking accounts, which can be used like money to make payments and purchase goods and services; savings accounts and time deposits that can be used to save money for future use; loans that consumers and businesses can use to purchase goods and services; and basic cash management services such as check cashing and foreign currency exchange. Four types of banks specialize in offering these basic banking services: commercial banks, savings and loan associations, savings banks, and credit unions. A broader definition of a bank is any financial institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its customers. This broader definition includes many other financial institutions that are not usually thought of as banks but which nevertheless provide one or more of these broadly defined banking services (2000).These institutions include finance companies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies, and real estate investment trusts. Banking services serve two primary purposes. First, by supplying customers with the basic mediums-of-exchange, banks play a key role in the way goods and services are purchased. Without these familiar methods of payment, goods could only be exchanged by barter which is extremely time-consuming and inefficient. Second, by accepting money deposits from savers and then lending the money to borrowers, banks encourage the flow of money to productive use and investments (2000).   This in turn allows the economy to grow. Without this flow, savings would sit idle in someone’s safe or pocket, money would not be available to borrow, people would not be able to purchase cars or houses, and businesses would not be able to build the new factories the economy needs to produce more goods and grow. Enabling the flow of money from savers to investors is called financial intermediation, and it is extremely important to a free market economy. The deposit and loan services provided by banks benefit an economy in many ways. First, checking accounts, because they act like cash, make it much easier to buy goods and services and therefore help both consumers and businesses, who would find it inconvenient to carry or send through the mail huge amounts of cash. Second, loans enable consumers to improve their standard of living by borrowing money to purchase cars, houses, and other expensive consumer goods that they otherwise could not afford. Third, loans help businesses finance plant expansion and production of new goods, and therefore increase employment and economic growth. Finally, since banks want loans repaid, banks choose borrowers carefully and monitor performance of a company’s managers very closely (2000).This helps ensure that only the best projects get financed and that companies are run efficiently. This creates a healthy, efficient economy. In addition, since the owners of a company receiving a loan want their company to be profitable and managed efficiently, bankers act as surrogate monitors for stockholders who cannot be present on a regular basis to watch the company’s managers. The checking account services offered by banks provide an additional benefit to the economy. Because checks are widely accepted as payment for goods and services, the checking accounts offered by banks are functionally equivalent to real money that is, currency and coin (2000).   International Banking The expansion of trade in recent decades has been paralleled by the growth of multinational banking. Banks have historically financed international trade, but a notable recent development has been the expansion of branches and subsidiaries that are physically located abroad, as well as the increased volume of loans to foreign borrowers. In 1960 only eight U.S. banks had foreign offices with a total of 131 branches. By 1998 about 82 U.S. banks had about 935 foreign branches. Similarly, the number of foreign banks with offices in the United States has increased dramatically. In 1975, 79 foreign banks were chartered in the United States, accounting for 5 percent of U.S. bank assets. In 1998, 243 foreign banks had U.S. offices, accounting for 23 percent of U.S. bank assets. Most of these banks are business-oriented banks, but some have also engaged in retail banking (2003). In 1978 the U.S. Congress passed the International Banking Act, which imposed constraints on the activities of foreign banks in the United States, removing some of the advantages they had acquired in relation to U.S. banks. As banks make more international loans, many experts believe that there must be greater international cooperation regarding standards and regulations to lower the risk of bank failure and international financial collapse. In 1988 the Basel Committee on Banking Supervision, an international organization of bank regulators based in Basel, Switzerland, took the first steps in this direction with the Basel Capital Accord. The accord established a global standard for assessing the financial soundness of banks and required banks to maintain a minimum ratio of capital to risky assets (2003).   Many banking experts believe this accord became the primary tool for strengthening the safety of international banking. The accord was eventually adopted by 100 countries. In 2001 the Basel Committee recommended a new set of regulations known as the New Basel Capital Accord to replace the 1988 agreement. The type of national economic system that characterizes developing countries plays a crucial role in determining the nature of the banking system in those countries. In capitalist countries a system of private enterprise in banking prevails. In state-managed economies, banks have been nationalized. Other countries have patterned themselves after the social-democracies of Europe; in Egypt, Peru, and Kenya, for instance, government-owned and privately owned banks coexist (2003). In many countries, the banking system developed under colonialism, with banks owned by institutions in the parent country. In some, such as Zambia and Cameroon, this heritage continued, although modified, after decolonization. In other nations, such as Nigeria and Saudi Arabia, the rise of nationalism led to mandates for majority ownership by the indigenous population. Banks in developing countries are similar to their counterparts in developed nations. Commercial banks accept and transfer deposits and are active lenders, especially for short-term purposes. Other financial intermediaries, particularly government-owned development banks, arrange long-term loans. Banks are often used to finance government expenditures. The banking system may also play a major role in financing exports (2003).   Hong Kong and its economy Hong Kong’s position as one of the world’s most important economic centers is based on several factors. It is located midway between Japan and Singapore, and it lies astride the main shipping and air routes of the western Pacific. It also has long served as a major port of entry and trade for China, which uses Hong Kong as a primary link to the world economy. Furthermore, Hong Kong has a favorable atmosphere for business and trade. Despite the uncertainty associated with its return to China, which has a Communist government, Hong Kong continues to thrive economically and attract new migrants. Hong Kong’s economy has always been based upon commerce, trade, and shipping, and today it vies with Singapore as the world’s largest container port. Industry and tourism are also important, and agriculture continues to provide a significant share of the territory’s food and flower supplies, although Hong Kong must import the majority of its food (1997).  Farming is a declining sector, because of the shortage of suitable farmland. There are now less than 2,000 hectares under cultivation for vegetables and flowers, although these produce about one-quarter of the fresh vegetables consumed. Increasingly, farmers are growing premium food and flower varieties, which fetch higher market prices than the traditional rice crop. Pig farming is also important. Hong Kong’s fishing fleet is significant and contributes about two-thirds of the live and fresh marine fish consumed each year (1997).   Manufacturing developed rapidly in the 1950s and grew to become the most important economic sector in the early 1980s, when manufacturing employment reached nearly 905,000. It quickly declined in the following decade; however, as Hong Kong manufacturers began shifting the location of their production facilities to neighboring Guangdong Province, where labor costs were much lower. By the early 1990s industrial employment had declined to less than 575,000. Manufactured products include clothing, textiles, toys, plastics, electronics, and watches and clocks. However, these products are gradually being replaced by manufactures that require a more highly educated and skilled labor force to produce. Hong Kong is among the leading trading centers in the world, and shipping and trade continue to be important aspects of its economy. The market is generally open and favorable to trade, and Hong Kong has been successful at balancing its imports and exports (1997).  Many of its exports are actually re-exports, products that are manufactured in other parts of China, or in Japan, Taiwan, the United States, or South Korea but distributed through Hong Kong. These products include clothing, textiles, telecommunications and recording equipment, electrical machinery and appliances, and footwear. Imports consist largely of consumer goods, raw materials, transportation equipment, and foodstuffs. Extensive trade occurs with other regions of China. In addition, Hong Kong’s leading international trading partners are the United States and Japan (1997).   The banking system in Hong Kong Hong Kong is doubly exposed to China, both through substantial cross-border lending of its banks and because it’s economic growth is almost entirely dependent on its role. The failure of China’s domestic banking and enterprise reforms would not only reduce China’s growth but also its foreign trade, which would adversely affect Hong Kong’s real economic growth and perhaps the performance of Hong Kong banks. The primary role of banks and other financial institutions in a market economy is to serve as an intermediary between savers and investors and to facilitate payments between economic units. Banks fulfill their intermediary function by taking deposits and lending funds to investors. Individuals, in theory, could provide their funds directly to entrepreneurs starting new businesses or to establish firms that wished to expand. In practice at least four drawbacks exist to such direct investments, all of which banks can overcome, at least in part. First, the scale of many investment projects is sufficiently large that it requires the pooling of funds of many small savers. Banks provide an efficient mechanism for pooling, obviating the need for firms to raise funds directly from a large number of savers. Second, some savers may want their funds back relatively soon while investors’ projects are typically long term (1998).  Banks can take short-term deposits from a large number of individuals and lend some of them long term and still stand ready to meet the demand for withdrawals on the part of some depositors. Third, savers may regard placing all their funds in a single or small number of investments as too risky.   Banks, by lending to a broad range of projects, perform the function of diversifying the risk faced by savers. Finally, through the accumulation of experience in evaluating large numbers of borrowers, banks are better able than individuals to identify the most promising projects. Thus banks can be more successful than individual savers in allocating funds to the highest rate of return. Banks also provide discipline in the market. Their lending practices can ensure that high-quality borrowers not only have access to funds, but that they are provided a lower cost of funds and they can force lower quality borrowers and projects to pay a premium for funds received (1998). Hong Kong banks in late 1997 were already suffering from the effects of the higher interest rates necessary to maintain the peg of the Hong Kong dollar to the U.S. dollar. In part the adverse consequences for banks stemmed from declining local property values, which weakened the balance sheets of the local property developers, who were among the biggest borrowers from Hong Kong banks. Hong Kong banks also have exposure to the property bubble in China because of their acknowledged cross-border lending.   In addition, in Hong Kong banks lend to Hong Kong companies that are China majority owned, including companies that are known as Red Chips. These companies often use these loans to finance their property and other projects in China. The Bank of China and its affiliated institutions, which account for about one-fourth of all deposit taking and lending activity in Hong Kong, are active participants in lending to Red Chip companies Other Chinese-owned banks presumably also lend to Red Chip companies (1998).  These exposures might lead to such a severe attack on the Hong Kong dollar that China might make good on its pledge to use its foreign exchange reserves to contribute to the defense of the value of the Hong Kong dollar. That, in turn, might lead to a weakening of the ability of the Chinese authorities to maintain the fixed exchange rate of its own currency (1998). Methodology After gathering and discussing literature that gives additional knowledge and understanding of the study the next thing to do is gather data and the way it will be gathered will be discussed in this chapter. This chapter will discuss the methods used and done in the study which helps in gaining the needed information. This chapter will discuss about the research method; the chapter will then discuss about sampling and sampling technique. Furthermore this chapter will discuss the method of data collection; this chapter will discuss about validation of the instrument; lastly this chapter will discuss about the statistical treatment of data and the statistical formula used in the interpretation of data.   Research method The research process onion of (2003) will guide the researcher in order to come up with the most suitable research approaches and strategies for this study. The research process union will be used as a basis to show the researcher’s conceptualization of the most applicable research approaches and strategies that will lead to the gathering of the necessary data needed to answer the research questions stated in the first chapter, as well as to arrive to the fulfillment of this research undertaking’s objectives. The research will use the descriptive method to determine the advantages and disadvantages of E-banking to Hong Kong banks. Descriptive research tries to explore the cause of a particular event or situation. It also wants to present facts concerning the nature and status of a situation, as it exists at the time of the study ( 1994). In addition, such method tries to describe present conditions, events or systems based on the impressions or reactions of the participants of the research. Basically, a descriptive research utilizes observations and surveys. For this reason, the study calls for the use of this approach because it is a goal of the study to gather first hand information from bank managers and other people knowledgeable about risk management and financial stability. This way, the study will be able to make comprehensive conclusions and attainable recommendations at the end of discussion.  The descriptive approach is also quicker and more practical in terms of financing.   Moreover, this method will allow for a flexible approach, thus, when important new issues, probabilities, and questions come up during the duration of the study, a further investigation and confirmation may be allowed. Lastly this type of approach will allow for decisions to drop unproductive areas of research from the original plan of the study. The choice and design of methods are constantly modified during data gathering based on continuing analysis. This will give way for creation of an investigation of important new issues, concerns, probabilities and questions as they arose. In addition, this study also employed partly qualitative research method, since this research intends to find theories that would explain the relationship of one variable with another variable through qualitative elements in research. These qualitative elements do not have standard measures; rather, they are behavior, attitudes, opinions, and beliefs. The qualitative research is described as multi-method in focus, involving an interpretative, naturalistic approach to its subject matter. This means that a qualitative researching procedure acts on studying things in their natural settings, attempting to make sense of situations, or interpret events in terms of the meanings people bring to them.   Sample and Sampling Technique                                                                                             The respondents of the study came from the different banks mentioned from Hong Kong. Due to time constraint and also, for the convenience of the researcher, only thirty (30) respondents were considered for the study. The convenience sampling technique was imposed in the study to pick up the thirty respondents, mainly because the availability of the respondents from the different banks was considered. This part of the study is important because the most important data needed to fulfill the objectives and aims of this study will only be supplied by the respondents from Hong Kong banks like HSBC, Standard Chartered Bank (SCB) and Hang Seng Bank (HSB).   Data Collection Method to use                                                                                       In gathering the data needed in this study a survey using questionnaire and interviews that will be conducted by the researcher will be utilized. A questionnaire will be constructed and administered to the respondents via personal interviews, as mentioned earlier the respondents of the study came from the different banks mentioned from Hong Kong. The respondents will be requested to answer the inquiries in the survey-questionnaire, each grading the statements using the Likert scale.  The equivalent weights for the answers will be: Range                                     Interpretation             0.00 – 1.49                                          Strongly Agree 1.50 – 2.49                                          Agree 2.50 – 3.49                                          Undecided 3.50 – 4.00                                          Disagree            4.50 – 5.00                                          Strongly Disagree             In the Likert technique, a set of attitude statements are presented, where subjects of a study are asked to express agreement or disagreement using a five-point scale. The degree of agreement is given a numerical value ranging from one to five, thus a total numerical value can be calculated from all the responses. ( 2004)   Primary and secondary data collection The primary source of data will come from a survey using questionnaire and interviews that will be conducted by the researcher. The primary data frequently gives the detailed definitions of terms and statistical units used in the survey. These are usually broken down into finer classifications. The secondary source of data will come from research through the internet; books, journals, related studies and other sources of information. Acquiring secondary data are more convenient to use because they are already condensed and organized. Moreover, analysis and interpretation are done more easily.   Validation of the Instrument For validation purposes, the researcher pre-tested a sample of the set survey questionnaires. This was done by conducting an initial survey to at least five respondents from the different banks from Hong Kong. After the respondents answered, the researchers then asked them to cite the parts of the questionnaire that needs improvement. The researcher even asked for suggestions and corrections from the respondents to ensure that the survey-questionnaire is effective. Automatically, these five respondents were not included as respondents for the study.   Data analysis             Data gathered will be analyzed through frequency distributions. These will give way to reviewing the data categories and the number of referrals in each category. With relation to data analysis, the indicators that will be used in evaluating the study include the age bracket the respondent belongs to; the social status; the educational attainment of the respondents; the position of the respondents in the company or in the banking institution and the number of years the respondent served as an employee of the company. This can help in determining the course of the study and why does the question in the study have those kinds of answers. Statistical Treatment of Data             After all the data from the researcher-made questionnaire were collected, the following statistical formulae will be used: 1.     Percentage – to determine the magnitude of the responses to the questionnaire.             n % = ——– x 100         ;           n – number of responses             N                                 N – total number of respondents   2.     Weighted Mean             f1x1 + f2x2  + f3x3 + f4x4  + f5x5 x= ———————————————  ;                         xt   Where:           f – weight given to each response                         x – number of responses                         xt – total number of responses The researcher will be assisted by the Statistical Package for the Social Sciences (SPSS) in coming up with the statistical analysis for this study. In analyzing the research, graphs will be needed to give a more detailed and illustrative presentation of the research. The graphs will be used to show the differences in the ideas of the respondents. Such things will be done to help in making sure that the objectives in conducting the research will be done and a good conclusions and recommendations will be accomplished.  Presentation, interpretation and analysis of data   After data collection the next thing to be done is data presentation, interpretation and analysis. It is important that the research output be presented in an organized, coherent and understandable manner so that those who will read the research can propose important decisions about the results of the study. In preparation of the research output the things that should be considered includes the purpose, target reader or target end-user, clarity, appropriate words style, graphic aids. Purpose means the desired effect or the desired outcome of something, it must be clear whether the purpose of the research is to inform, to criticize a previously done investigation about a certain issue, or to propose policies or strategies, It must be assured that the problem is well addressed from start to end.   Type, length, nature of the data being discussed should be relevant to the purpose of the study. Target reader / end–user are those who the study wants to reach and attract to read the research. These are one of the reasons studies are made. They get knowledge from the studies and use it to create related and better studies Contents and presentation of the data should be pertinent to the needs of the target reader or end-user. The data should be easily understood and concise for the reader to be attracted to it. The data should be well presented to coincide to the needs of the customer. The data should make the consumer learn from it. Clarity is the precision of data. Using words that are specific, measurable, and descriptive will help in illustrating statements and ideas. Logical data organization and a sound interpretation add clarity to a report. In relation to this, n making conclusions and recommendations there should be relative data at hand to make the course of action doable. Appropriate words are words that give more meaning to a statement, appropriate words help to give proper description to the data. Concepts or words with inconsistent meaning should be shunned. Using jargons or languages that are meaningless should be avoided. In making the research, its language should be familiar to the reader or it must be used commonly in day to day business in the field of the reader. Technical terms should be defined since not all readers understand these words. The study should avoid words which appeal to emotions, being bias, and moral judgment.   Style is way the study is presented. The study should be clear, readable and understandable. The study should have consistency. It should have correct grammar, its spelling should be correct, it should have proper punctuation, it should compose of short and simple sentences. It should be presented in a manner a reader will be attracted to it. To help enrich the analysis of the data, direct quotation from the answers of the respondents will be beneficial. The discussion can be easier if a section is subdivided into subtopics based on the objectives or hypothesis of the study, to focus on the analysis. Graphical aids are one way to effectively send the message of the study. It can be used as an integral or supplemental part of the text. Graphical aids should be clear and easily understood by the reader. The data should be accurate to prevent miscalculations and misinterpretations. Graphical aids include tables, graphs and charts. Charts can either be a pie chart, vertical bar chart or line bar chart.   This chapter intends to discuss the information acquired from the survey and interview done for the research. The main objective of the study of this study is directed towards finding out the advantages and disadvantages of E-banking to Hong Kong banks. Primary research and secondary research was used for this study. Primary research was done using questionnaire; the questionnaire was be given to the participants, which compose of bank managers and other people knowledgeable about risk management and financial stability. The questionnaire had two sections: the first part intended to acquire the demographic profile of the participants, and the other section comprised of a set of attitude statements that intends to determine the level of agreement or disagreement using a five-point Likert scale. This chapter has been divided into two parts. The first part intends to give information about the respondents particularly with regards to their age, gender, civil status, educational attainment, and length of service in their industry. This part takes a look at the reliability of the respondents. The second part intends to give information about the ideas of the respondents with regards to the advantages and disadvantages of E-banking to Hong Kong banks. In this part answers to the research questions will be given. Afterwards analysis of the results will be done. This part takes a look at the results and what it implies within the study. Part 1 Presentation of Demographic Data In this part of the study, the general profile of the respondents shall be discussed. Initially age of the respondents will be given attention. The participant’s age was divided into different groups. The groups include 52 up; 46 to 52; 39 to 45; 32 to 38; 25 to 31; and 18 to 24. The succeeding figure will give the response of the participants.   Figure 1 Percentage distribution of respondent’s age The first figure shows that 44% of the respondents were those at the age level of 39 to 44. This might be reflected by the fact that most of the respondent’s positions in a company were managerial positions and to attain that position requires a substantial amount of working experience. To attain a managerial position someone must not only be experienced but matured enough for the endeavor. The figure also showed that 22% of the respondents were those at the age level of 25 to 31. Moreover the first figure showed that 16% of the respondents were at the age level 46 to 52. The figure showed that 11% of the participants were at the age level of 52 and above.  Lastly the figure showed that 7% of the respondents were at the age level of 25 to 31. Getting information from an older person gives some assurance that the information received came from the experience of the person.   Older persons can relate information according to what they experienced. That is why most of the respondents were aged 39 to 45, within this age bracket are those who learned and gained a lot of experience from school, previous and current work. They are more mature and full of ideas. This age bracket is those who are well on their way on the corporate ladder, they are soon to be promoted or may have been promoted due to their good performance. They have a bright future ahead of them, their ideas may be new but it can revitalize the company.   Figure 2 Percentage distribution of respondents ‘Gender The second figure shows that more than half of the respondents were male; they were 70% of the total respondents. 30% of the respondents were female. Male employees are considered to be more active and should be doing the hard work. Most male employees are the company’s muscle they usually are the moving force in the company. That is why most men are assigned to do field works. This shows that since most of the respondents are male, they tend to be more of the ones who deal with people through personal conversation; they can be the ones who can prove or disprove the problem through their experiences in dealing with people. Men are more firm in their decision and they are more persistent in dealing with different kinds of people.    Figure 3 Percentage distribution of respondents’ civil status   The 3rd figure shows that almost half of the respondents are married; they were 41% of the total number of respondents. 27% of the respondents were separated. 22% and 10% were divorced and single accordingly. Most of the respondents are married and had gained a lot of maturity and experience. Married persons are more mature than those who are single. In getting the necessary information it is important to ask persons who are more maturity to prevent being misled.  This proves that most of the respondents were mature enough and experienced enough to prove or disprove the problem.   Figure 4 Percentage distribution of respondents’ Educational attainment The fourth figure shows that most of the respondents attained college degree, more than half of the respondents or 72% of the total number of respondents were college graduates. 18% of the respondents have finished their Masteral Curriculum. 10% of the respondents had a Doctorate degree. The respondents should be educated well to give the necessary information. Education of a person is an important factor in considering if the information taken from a person is useful or not for the study. With more education acquired by these persons, more experiences and knowledge can be attributed to them. This can be benefit the study and the information needed.  This shows that most of the respondents were well educated and can be relied upon to give exact answers to the questions. This also shows that the respondents were well experienced and well learned of what the internet can or cannot do. Figure 5 Percentage distribution of respondents’ length of service in the company The fifth figure shows that 55% of the respondents have been serving their respective companies for more than 5 years. 26% of the respondents have been serving their companies for 4 years. 19% of the respondents have been serving their company for 3 years. Majority of the respondents have already years of experience in the company. With experience comes knowledge and wisdom. The respondents had experienced and learned many things about the company. This could help in gaining necessary information.   Respondents who had worked with the company for more than 5 years can help in determining the advantages and disadvantages of E-banking to Hong Kong banks. They have observed things that happened in their company and the industry.  They know what causes the problems they are facing and the things they might encounter. There are no respondents who had worked less than a year in a certain company since this type of respondents are less experienced and might not help in giving necessary information. Part 2 Ideas of the respondents In this part of the study the responses of the respondents will be presented and be given attention and analysis. All of the respondents’ responses are based on whether they agree, disagree, strongly agree, strongly disagree, or neutral/undecided with the questions stated regarding the advantages and disadvantages of E-banking to Hong Kong banks. The participants’ responses are vital and much needed to achieve the objectives of the study. To achieve the objectives is to get the necessary and reliable information regarding the advantages and disadvantages of E-banking to Hong Kong banks.  The participant’s responses after being put in an organized conclusion will give the necessary information to find a logical solution for the study’s problem; it can also assist in providing a reachable recommendation and course of action. Such responses will be represented by figures or graph to make it clear and to achieve greater understanding. Lastly these graphs helps in making the study more visual oriented for greater appreciation by the reader. Figure 6 Percentage distribution of the survey results of the first question The first question asked the respondents if they believe that E banking helps in removing situations wherein time is being wasted by the Hong Kong banks. Majority of the respondents agree with the question. They were 43% of the total number of respondents. Another big part of the respondents strongly agree to the first question. They were 37% of the total number of respondents. A part of the respondents are neutral or undecided on the first question. They were 20% of the total number of respondents. The respondents believe that with the use of e- banking time will not be wasted. The different banks in Hong Kong and their employees can do more things at the same time. They won’t have to personally deal with clients who may require more time thus removing their chance of doing other things.  Figure 7 Percentage distribution of the survey results of the second question The second question asked the respondents if they believe that E-banking helps in making sure that service is carried efficiently and effectively. Majority of the respondents agree on the question. They were 57% of the total number of respondents. A part of the respondents strongly agree with the statement. They were 27% of the number of respondents. Lastly the smallest part of the respondents was undecided or neutral with the question. They were 17% of the total number of respondents. The respondents think that E-Banking can make the way Hong Kong banks serve clients more effective and easier.  E-banking provides a better image to banks, when they provide an effective and efficient service to clients their image is changed and it attracts more clients. Figure 9 Percentage distribution of the survey results of the third question The third question asked the respondents if they believe that E-banking helps in removing certain costs for banks. Majority of the respondents agree with the question they were 67% of the total number of respondents. A part of the respondents strongly agree with the question. They were 23% of the total number of respondents. The smallest part of the respondents is undecided or neutral with the question. They were 10% of the total number of respondents. The respondents think that E-banking removes some of the cost of the banks. The different banks in Hong Kong don’t have to spend on the different papers and printed materials that they use in transacting with clients. With the use of E-banking no forms are needed. Everything is just typed on the computer. Requests are made on the computer as well. The different banks in Hong Kong also have lesser expenditures on human resources since E-banking will take fewer people to transact with clients. The banks will not have to hire people to transact with clients because their personnel can do that while doing other things. Figure 10 Percentage distribution of the survey results of the fifth question The fifth question asked the respondents if they believe that E- banking helps in keeping data safe. Majority of the respondents disagree with the question they were 60% of the total number of respondents. A big part of the respondents strongly disagreed with the question. They were 30% of the total number of respondents.  A little part of the respondents was undecided with the question. They were 10% of the total number of respondents. The respondents don’t believe that data owned by clients and banks are not safe when e- banking is used. The internet can be a dangerous place for files to be transmitted or kept. Banks have many kinds of files and when it is placed online some unscrupulous persons might attempt to steal it for their own satisfaction. Although there are certain soft wares and programs that can be used to block unauthorized transactions this may not be enough for people who already has a great knowledge in taking other people’s data through the internet. Figure 11 Percentage distribution of the survey results of the seventh question The seventh question asked the respondents if they believe that E- banking is easy to learn. Majority of the respondents disagree with the question they were 47% of the total number of respondents. A big part of the respondents strongly disagreed with the question. They were 30% of the total number of respondents.  A little part of the respondents was undecided with the question. They were 23% of the total number of respondents. The respondents don’t believe that E- banking is easy to learn. They think that this may be a source of problem for the banks in Hong Kong. They think that not all people can easily learn how to use E-Banking.  Most of the trusted and well tested employees are not used to computers and the internet. The different financial institutions will have to give more time for them to learn how to use such technology. This results to services being delayed. Figure 13 Percentage distribution of the survey results of the tenth question The tenth question asked the respondents if they believe that the E-banking makes banks loose a human touch with their clients.  Majority of the respondents disagree with the question they were 70% of the total number of respondents. A big part of the respondents strongly disagreed with the question. They were 27% of the total number of respondents.  A little part of the respondents was undecided with the question. They were 3% of the total number of respondents. The respondents think that E-banking makes banks in Hong Kong lose some kind of personal touch or communication with clients. E-banking prevents banks to deal with clients personally. Personal communication is an important aspect of client to business relationship. The bond between the client and the business makes services delivered accurately.   Analysis of Data There are 3 advantages of E-banking to HK banks. One advantage is E-banking saves time for the banks and their personnel, another is it helps in making banks serve effectively and efficiently. E-banking also removes some of the banks costs. The respondents believe that with the use of e- banking time will not be wasted. The different banks in Hong Kong and their employees can do more things at the same time. The respondents think that E-Banking can make the way Hong Kong banks serve clients more effective and easier.  E-banking provides a better image to banks, when they provide an effective and efficient service to clients their image is changed and it attracts more clients. The respondents think that E-banking removes some of the cost of the banks. The different banks in Hong Kong don’t have to spend on the different papers and printed materials that they use in transacting with clients. With the use of E-banking no forms are needed   On the other hand there are 3 disadvantages of E-banking to HK banks. One is E-banking might not be a safe place for data, another is it may not be easy to learn. E-banking also may make banks lose their personal touch with clients. The respondents don’t believe that data owned by clients and banks are not safe when e-banking is used. The internet can be a dangerous place for files to be transmitted or kept. The respondents don’t believe that E- banking is easy to learn. They think that this may be a source of problem for the banks in Hong Kong. They think that not all people can easily learn how to use E-Banking.  The respondents think that E-banking makes banks in Hong Kong lose some kind of personal touch or communication with clients. E-banking prevents banks to deal with clients personally. Credit:ivythesis.typepad.com

E-banking to Hong Kong banks

Review of related literature Introduction This section of the study primarily focuses on the different researches and other literatures ...