Applying e-Banking in Saudi Arabia

INTRODUCTION

Saudi Arabia sector of finance incorporates commercial banks, non-banking financial firms, and insurance sector (Ramady 2010). Saudi banking environment comprises of twenty banks, with incorporation of private banks and joint venture banks.

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Mobile banking is a new method of carrying out bank transaction. The technology aids customers to use their mobile devices to get an access to their bank accounts. The process also enables the customer to undertake many forms of financial transactions without any need of visiting a banking institution to access the services (Curwen, & Whalley 2011). In addition to banking transactions, mobile devices aid customers in making m-payments.

Mobile banking acts as an effective tool for the bank to carry out research of the customer satisfaction of the services delivered to them. The banking system aids the banks management in undertaking analysis of customer banking trends and behavior. On the other hand, mobile banking provides an opportunity for customers to give feedback to the banking management on the quality of services delivered. This is an effective tool, for the banking management to evaluate customer reactions and attitudes.

Advantages

Mobile banking assists customers to send and receive money directly without any need of spending time to move to a nearby banking institution. In addition, the service offers customers an option of paying bills and purchasing various products they need. Mobile banking aids in circumventing established traditional methods of money transfer, which have higher costs. The bureaucracies found in most of the banking institutions are reduced to the maximum. This occurs since mobile banking aid in minimizing the number of customers who visit the banks to seek for services from the banks. In addition, mobile banking improves the corporate image and develops the competitive advantage of a given banking institution.

Disadvantages

Mobile banking uses phone handsets, which are deemed to pose problems to customers while using since they have an element of unsuitable display, and they have a small keyboard. This makes customers find difficulties in operating using the phone handset to make transactions. In addition, mobile banking has an element of insecurity bestowed on it since criminals may force an individual to transfer funds to them, and they ensure that they confirm the fund transfer process. Moreover, the social contact between and individual and the bank are lost completely in the event of adoption of the mobile banking.

LITERATURE REVIEW

Mobile banking aid in timely conducting of financial transactions at the convenience of the customer. However, the system has inherent limitations of insecurity. As such, Curwen and Whalley (2011) claim that, advancement in technology will aid in overcoming the limitation and ensuring a fast and effective mobile banking system.  Mobile banking is a step that banking institutions take to ensure that customers receive services, which are fast and reliable.

The global population of human beings has developed a behavioral attitude of adopting the use of mobile banking. However, the degree of adoption of the same varies with regard to the environment in which an individual is located. This environment dictates the level of technology available and the rate of technology adoption, and the literacy level exhibited by the individuals. However, majority of people who own handsets have demonstrated the ability to input text messages on their phone and send, as well as receive the text messages. As such, mobile banking demand inputting of the text message; therefore, adoption of the same takes minimal time.

Trust is a key element that customers seek for in any kind of services they receive. Mobile banking develops this trust since the customers have a room of establishing if the transaction took place and whether the desired recipient of the transaction, received the service. Mobile banking adoption has occurred in most of the emerging markets. An example of this is G-Cash in Philippines (Curwen, & Whalley 2011). These emerging markets have demonstrated a substantial growth of the economy. The growth comes from the contribution of mobile banking services in the markets.
RESEARCH PROBLEM

Banking systems in Saudi Arabia have a sparse distribution in the region. As such, customers find it difficult to access the banks in order to conduct the desired transactions. In addition, customers have a limited means of offering feedback to the bank management of the quality of the services offered to them. On the other hand, the banks find it difficult to access customer satisfaction of the services rendered to them, and the banks find it cumbersome to keep a record of financial transactions. The banks also have to deal with the problem of handling many customers on the queues. This involves devising queuing systems, which most of the time appear ineffective. As such, there is a dire need for the banks to adopt mobile banking, which will aid in overcoming these banking service limitations.

Globalization and changes in levels of technology have led to emergence of e-commerce. Therefore, there is a need of banking institutions in Saudi Arabia to adopt mobile banking, which creates a room for application of e-commerce.

RESEARCH OBJECTIVE

The main aim of this research is to establish measures that need adoption in order that banking systems in Saudi Arabia adopt mobile banking. The research objectives are outlined as:

1. To determine the attitude on banking customers in Saudi Arabia towards mobile banking
2. To determine the effect of mobile banking on Saudi Arabia banking institutions
3. To determine the perception of Saudi Arabia banking system on mobile banking
4. To identify measures that need adoption for effectiveness of mobile banking in Saudi Arabia

METHODOLOGY

For the research topic, applying e-banking in Saudi Arabia, qualitative and quantitative research will take place. The aim being to collect data related to the topic of research. The population of interest will be Samba bank. The qualitative research will begin with face-to-face interview and involve focus groups. The collected data will use survey on quantitative research to identify non-captured data on qualitative research.

The case study for the research will be e-banking at Samba (Jadeed, & Molina 2004). On the case study, attention will be paid on e-banking implementation at Samba. Samba is one of the significant Saudi Arabia banks.

Resources required

Internet websites, academic journals on mobile banking, and books related to mobile banking will find effective application in this research. In addition, primary data collection methods such as interviews and questionnaires will find use in the research process. Finally, mathematical and statistical tools will aid in data analysis and presentation; thus, they will find a wide application in the entire research project process.

RESEARCH TIMETABLE

BIBLIOGRAPHY

Curwen, P, & Whalley, J, 2011. Mobile Telecommunications In A High Speed World:

Industry Structure. Wey Court East, Union Road: Gower.

Jaded, M, & Molina, A, 2004. The Emergence And Evolution Of E-Banking In Saudi Arabia:

The Case Of Samba Financial Group. Frontiers Of E-Business Research.

Ramady, M, 2010. The Saudi Arabian Economy. Springer Science Business Media LLC.

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