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Background

Online banking system is a system that allows a person to perform banking activities at home using internet, at any time. Some traditional banks now-a-days are transferred into online banking system. Online banking offers customers to do all their banking activity such as transactions, such as account transfers, balance enquiry, bill payments and stop payment requests & sometimes some bank offer loan also. Customer can access to their own account at any time from any place via using internet. (Financial Institution, n.d)
The history of online banking system started at the beginning of 1980. The banking system was first introduced in 1981 in New York City by the four major banks among all; who started online banking system. In 1983 Nottingham Building Society inaugurated online banking system in the UK. After 1990 Bangladesh was introduced with the new banking system. During 1992-93 some multinational banks established ATM booth in Dhaka, Bangladesh. Dutch Bangla Bank Ltd. Was the first bank in Bangladesh for electronic banking system. (Present Status of e-Banking in Bangladesh, 2013) Still our banks are working to make the system easier for the mass consumer and they are trying to improve the whole system.
Online banking system is a new banking system for our country and countrymen. So, it’s hard to accumulate all the people under one umbrella and make them comfortable with the system. That’s why acceptance of the system is not equal among all the people. Still banks cannot involve older groups in the system as they don’t feel the system safer and feel the
traditional banking system more comfortable. In spite of having many advantages of online banking system the older generation doesn’t consider the system as a friendly and reliable system and there are reasons behind it. Trust plays an important role that acts as an obstacle between older generation and online banking system. Some recent bank forgeries, some myths about the system or fear of being cheated by the system are among important trust issues.
Now a day’s technology has developed a lot and with the improvement of the technology there comes some security issues also. Hackers are more active nowadays and they are one of the biggest threats for the online banking system. They always try to break down the security system and hack all the personal information of the users. Banks are trying to improve their security system. But the older generation are very much concern about the matter. As they don’t have proper technological knowledge, they are very skeptic about the hackers. They think online banking system is not safe from the hackers and so their money. So they don’t rely on the system. Again adoption of online banking fails to keep its pace with that of internet usage. As our internet service is not good enough and online banking is fully based on internet; so people are unable to get the proper advantage of the system.(White ; Nteli, 2004)It plays an important role for not having trust in the system, especially among the people aged above 65. (Ilett, Perumal, ; Shanmugam, 2005).
Some recent bank forgeries make the Bangladesh Bank concern about the matter. Bangladesh Bank realizes that if this kind of forgeries cannot be stopped then, more people will lose belief online banking system. As-a-result Bangladesh Bank takes some necessary steps. All other commercial banks or other banks are ordered by Bangladesh Bank to improve their security system. In that seminar Atiur Rahman; governor of Bangladesh Bank “Bangladesh Bank has got a Material Loss Review conducted covering the recent frauds at different banks and it has revealed that the affected banks had not taken the required measures to tackle embezzlements”.(Kabir, 2013). The governor also expressed his sorry by saying that, local banks were not still that much concern after so many bank scams and that’s why he put an importance in having strong laws to prevent this scams and ordered the other local banks to keep their transactions safe.
As a large number of older people don’t trust the system Government along with the other banks can come forward and can take some necessary steps to educate people about the online banking system and make them aware about it. Government can pass laws so that people, especially older people feel safe. Government can also ensure accountability. Again government banks transmission from traditional banking to online banking may also help the mass people to keep their trust in the system. Recently Rupali bank, which used to be the largest government bank; also adopts online banking system.(Alam, 2013) Older people may be get motivation from this and may be they will start rely on online banking system.

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Data Analysis
This part of my research contains the result of my primary research. For the primary research I have conducted 31 surveys. Among them 17 people were below 32 years of age and the rest of them (14) are older generation people whose age are above 33. After doing my survey I have analyzed the data and have represented the answers of younger and older generation separately in percentage format. The results are given and described next.
In my first question I asked people “Do you have trust on online banking system?”Options were a) Yes and b) No. In answer to that question about 88.23% younger generation and 28.57% older generation people answered that they have trust. Mostly 71.42% people from the older generation and 11.76% from the younger generation answered that they don’t have trust in online banking system

FIGURE 1: Do you have trust in online banking system?
From the graph I have found that 88.23% from the younger generation answered positively about having their trust in the system. Only 28.57% from older generation answered positively. So it can be said after overall survey that younger generation people has different views about online banking system and younger generations tend to believe the system than older generation. Maybe younger generations possess more technological knowledge than the older generations and that’s help the younger people to keep their trust in the system.
In my second question I asked “Why do you have trust in Online Banking System?” My options were a) Because our technological sector is much developed now, I think it can ensure safety b) Because I am not victimized of the system yet c) Because my bank promised me a safe and transparent banking and d) I don’t have trust in it. In response 35.29% younger people and 0% older people answered option a. For option b 17.64% younger and 21.42% older people ticked, 35.29% younger people and 7.14% older people chose option c and finally option d was chosen by 11.76% younger and 71.42% older people.

Figure 2: Why do you have trust in online banking system?
After analyzing the graph I have found that most of the younger people had trust in the online banking system because they had trust in our technological improvement and they were being assured by their own bank. On the other hand most of the older generation people don’t have trust in the system. Few of them had trust in the system because they were being assured by
their banks. Lacking of proper trust in our security system may be a big factor that makes older people feel unsafe and that’s why they don’t have trust in the system.
My third question was about “Do you think Government Banks conversion into online banking system can help to make the system more reliable?” My options were a) Yes, government involvement will make the system more reliable b) May be it will help c) No, it will not help d) I don’t have any idea about it. Option a was answered by 17.64% younger people and 21.42% older people. 23.52% younger people and 14.28% older people answered option b. Option c was selected by 29.49% younger people and 35.71% older people. Finally option d was answered by 29.49 % younger people and 28.57% older people

Figure 3: Do you think Government Banks conversion into online banking system can help to make the system more reliable?
After analyzing the graph I have found that most of the younger people (almost 30%) and older people (almost 36%) thought that government banks conversion into online banking system
will not help them to make the system more reliable to them. Maybe they didn’t want to belief on the basis of government banks’ conversion into the system. There might be other reason behind it, like lack of proper belief, less belief on our security system or others. Again a large number of people from both the group hadn’t any idea about the topic.
The next question I asked “In perspective of Bangladesh what is the main reason that makes the system less trustworthy to most of the people?” Options were a) Lack of trust in our law and order b) Lack of confidence in our security system c) Recent scandals and the recurrence of such scandals and d) Some myth and lack of proper technological knowledge and in answer to that 11.76% people from the younger generation answered option a as their answer and 0% older people answered this option. In younger generation 41.17% and in older generation 50% people answered option b. Option c was chosen by 11.76% younger and 35.71% older people. Finally option d was answered by 35.29% younger people and 14.28% older people.

Figure 4: In perspective of Bangladesh what is the main reason that makes the system less trustworthy to most people?
After analyzing the graph it’s clear that almost half number of people from both the groups (almost 41% younger people and 50% older people) had expressed same opinion regarding the matter. Maybe they were all aware of recent bank forgeries and these such forgeries were responsible to make them belief less on the system. Again a large number of young people had an opinion regarding the matter that, myths could also be a reason for making the system less trustworthy.
My question 5 was “Do you think literacy can influence people having their trust in online banking system?” My options were a) Yes, literate people are tend to trust more on technological terms b) Yes, illiterate people are skeptical about online banking system c) Online banking is about how one implicates it, doesn’t matter if one is literate or not d) It depends on one’s own perception. Among younger generation 41.17% people and 21.42% older generation answered option a. 5.88% younger people and 21.42% older people expressed their opinion for option b. Option c was ticked by 35.29% younger and 28.57% older people. Lastly option d was taken by 17.64% younger people and 28.57% older people.

Figure 5: Do you think literacy can influence people having their trust in online banking
system.
The graph showed that most of the young people thought that literacy can play an important role in having peoples’ trust in online banking and on the other hand most of the older people was liberal about the answer. Older peoples basically answered on the basis of peoples’ perception and implication of the system. Like younger people they didn’t think literacy as a big motivator for having trust.
Next I asked people “According to you, what can government do to make online banking system more trustworthy and reliable?” I have given the options asa) Government can ensure safety and security of online transactions b) Government can ensure accountability c) Government can aware people about the transparency of the system d) Government can pass laws so that people can feel safe. 52.94% younger and 42.85% older people ticked option a. Option b was answered by 5.88% younger and 14.28% older people. Option c was chosen by 17.64% younger people and 7.14% old older people. Finally 25.52% younger people and 35.71% older people voted for option d.

Figure 6: According to you, what can government do to make online banking system more
trustworthy and more reliable
After analyzing the graph I have found that a huge number of both young and old people had same opinion about the matter. Almost 53% young people and 43% old people thought that government assurance regarding the safety of the system would help to make the system more trustworthy. May be they think government involvement will make the system reliable as people tend to belief government more.
“In perspective of Bangladesh, do you think it’s easy for computer hackers to manipulate the online banking system?” was my seventh question and my given options were a) Yes, I think they are capable of doing such thing b) No, I don’t think they are capable of it c)

Maybe, but still that’s not an alarming threat d) I don’t have any about it. Most young people (almost 58.82%) and most old people (50%) have answered a. 0% younger people have chosen option b as their answer. On the other hand 7.14% older people answered option b. Option c was ticked by 35.29% younger people and 28.57% older people. Finally option d was answered by 5.88% younger people and 14.28% older people.

Figure 7: In perspective of Bangladesh, do you think it’s easy for computer
hackers to manipulate the online banking system
After analyzing the data one thing is clear that both the older and younger group was almost same regarding their opinion. Almost 59% young people and 50% old peoples’ perception regarding the matter was same. Maybe they didn’t have proper belief in their banks’ security system. Again a large number of young and old people thought that, may be the problem was not that much alarming.

My next question was “What do you think about the acceptance of this system among the older group of citizens?” And my options were a) I think they find it very hard to use b) I think they fear that they might be cheated by the system c) I think they feel secure in the traditional banking system and d) I think it’s wrong to stereotype the old generations. Option a was answered by almost 5.88% young people and 21.42% older people. Option b was answered by 35.29% young people and 42.85% older people. 35.29% younger people and 14.28% older people voted for option c. Last option d was answered by 23.52% younger people and 21.42% older people.

Figure 8: What do you think about the acceptance of this system among the older group of citizens?
Analyzing the graph helped to find the scenario. A big portion of both the groups (almost 35% young and 43% old) thought that older people are tensed about their being cheated by the system and that’s why acceptance rate between older groups was far low about online banking

system. Again almost 24% people from both the group don’t want to stereotype the older people only.
I asked “After several banking scandals do you still think Online Banking is trustworthy?” to the people for my survey and options were a) Yes, obviously; for some scandals we can’t blame the whole system b) Yes, those were exceptions c) Yes, because human being was responsible for those scandals was not the system and option d) No, I am losing belief on online banking. Almost half (47.05%) younger people and 0% older people chose option a. Option b was ticked by 0% younger people and 14.28% older people. Third option was chosen by 29.49% younger people and 28.57% older people. Finally the last option was answered by 23.52% younger people and 57.14% older people.

Figure 9: After happening several banking scandals do you still think Online Banking is trustworthy?

After analyzing the graph I have found that half portion of younger people (47%) people didn’t tend to blame the system for some scandals but on the other hand 0% of older people had thought in the same way. Again 0% younger people remarked those accidents as an exception and almost 58% older people were their losing belief from the system. Maybe people now a days are much more concerned about the recent incidents and these incidents affect them badly.
My last question was “How concerned are you about the security to making purchases through online banking?” My options were a) Not at all concerned
b) A little concerned c) Very concerned and last option d) I know I should be concerned, but I am not. Almost 17.64% younger and 14.28% older people answered option a. Half of the younger generation (almost 41.17%) answered option b and same answer was given by 21.42% older people. 35.29% younger people ticked option c as their answer and the number was 35.71% for the older people. Finally only 5.88% younger people chose option d and same option was answered by 28.57% older people

Figure 10: How concerned are you about the security to making purchases through online banking
The graph showed that both the young (almost 18) and older people (almost 15) had almost same response regarding their not having concern about the security. On the other hand almost 35% of both the groups’ people were very concern about the matter. Maybe recent scandals or lack of law and order lead them to possess such a perception or may be they are scared of being victimized and that’s why they are concerned about the security and don’t want to be cheated by others.

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