E-banking and its impact on banks' performance and consumers' behaviour

Financial industry is a heart of every robust economy, if it collapses so will the economy and it is absolutely evident from current recession in UK, and in turn, Information Technology has become the heart of banking sector. Investment and reliance in e-banking innovation by its providers to offer their services makes it essential to understand how various aspects of consumer behaviour affect the innovation and respond to service quality. Within this context this paper has undergone a critical literature review of previous researchers with an objective to examine the impact of e-banking on consumer's behaviour to e-service quality. To further this, since increased adoption of internet as a delivery channel contributes a gradual reduction in overhead expenses (Marketing, IT and Staff), this paper also consists of a critical review of peer reviewed, scholarly and organizational literature regarding the impact of e-banking on banks' performance to examine if banks have successfully achieved customer's satisfaction, by providing high level of quality service through online delivery channel, besides operating cost minimization and revenue maximization.