Internet banking in Korea : current status and its impact on the banking industry | |
| Author | Kim, Hongjae |
| Call Number | AIT RSPR no. SM-03-09 |
| Subject(s) | Banks and banking--Korea Internet banking--Korea |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master in Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-03-09 |
| Abstract | Internet banking is receiving great attention in the banking industry because it is believed that the Internet channel can help banks to maintain profitable growth by automating work done by employees, reduce cost and retain customers simultaneously. This study explores the development of Internet banking in Korea and analyzes the trend of consumer satisfaction in Internet banking service as well as evaluates current status of Internet banking based on that analysis. In addition, this study describes the impact of Internet banking on the banking industry. This study shows that not only large numbers of Korean Internet users are banking online, but they also have high levels of customer satisfaction with Internet banking. So, Korean domestic banks have been hugely successful in positioning online banking as secure, convenient for Internet users as well as increasing cost-effectiveness to the banks. However, this study also shows that Internet banking in Korea is still in its beginning stage, so far. This study suggests that banks should reconsider the pricing strategy and pay attention to the security issue to strengthen the banking relationship with the customers. Internet banking could have significant effects on the structure and performance of the banking industry. However, the impact of Internet banking on the consolidation of the banking industry seems to be not clear. If the economics of Internet banking favor large institutions because of increasing economics of scale and scope, the consolidation of the banking industry that has been processing steadily for several years could become more intense. But some customers prefer to choose lower costs or higher quality products produced by specialized financial service providers because the Internet provides a very effective searching device for consumers to choose the best-of-breed producers of specialized services. Therefore, this study recommends that banks should keep in mind of those different effects when they make decisions for consolidation or financial integration with other financial firms such as bank, insurance or security companies. |
| Year | 2003 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-03-09 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Park, Jin-Sung; |
| Examination Committee(s) | Singha Chiamsiri;Tocquer, Gerard; |
| Scholarship Donor(s) | The Government of Republic of Korea; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2003 |