This research proposal is submitted to the school of (name of school), (name of University) in partial fulfilment of coursework as presented in the course curriculum in partial fulfilment of the requirements for the degree of (name of the master’s degree you are studying for).Table of contents:

Contents;Page NO.

Cover page1

Table of contents2


Chapter one; Introduction4

Chapter Two; Literature Review and Conceptual Framework6

Chapter Three; Research Design11

Works Cited13


Internet banking is an emerging discipline that involves a variety of technologically feasible tools, for instance; mobile device, internet technologies and wireless networks. Internet banking is the latest gateway in electronic banking that provides various platforms in doing banking transactions, for instance; withdrawals, payments of bills, deposits etc. using internet enabled devices like; mobile phones, personal computers, tablets among others.

The purpose of this research is to explore and determine the extent of usage of internet banking by commercial banks in Oman, the research will also focus on investigating the challenges that banks face in adopting this technology. Furthermore, this paper aims at investigating the extent of adoption of information and communications technology in the banking sector in Oman.


Rationale of the study:

The internet revolution is transforming the banking sector in terms of the nature of core services and how these services are proposed, packaged, delivered and consumed (Sathye, 101). It is termed as an invaluable and powerful tool that drives development, supports growth, promotes innovation and enhances competitiveness (Kamel, 50). The banking sector is turning to information technology to improve and enhance business efficiency, quality service production and attract new customers. Trending technological innovations and advancements have been identified to be the key drivers behind distribution channels of banks and hence, these electronic delivery channels are thus referred to as the electronic banking. Evolution behind the entire banking technology is driven by changes in distribution circles as evidenced by; mobile banking, automated teller machine, telephone-banking, personal computer banking and internet banking.

Statement of the problem:

Research goal;

To establish the impact of electronic banking on retail and corporate banking in Oman.

Major research questions;

What are some of the factors that contribute to mass growth in electronic banking?

What is the major impact of E-banking on retail and corporate banking?

Minor research questions;

What are some of the factors that contribute to electronic banking?

What are the measures that banking sectors are taking to protect its clients against fraud?

What are some of the upcoming issues that are associated with electronic banking?

Research approach:

This research study seeks to identify and point out latest advancements in internet banking in Oman and how this new dimension of banking affects the clients in both the retail and corporate world. Internet banking or rather E-banking by definition is the process by which systems or processors that allow customers to access their bank accounts and general information on bank products as well as services through the use of a given bank’s website, without the traditional use of letters, faxes, signatures or even making telephone calls.



In the recent past, service organizations especially in the banking sector, for instance, retail banks have witnessed a major transformation in the technological advancements as well as deregulation in order to focus major attention in building and expanding distribution channel strategies. New dimension of technology, in most cases, has mostly been applied in service organizations to boost customer service quality and delivery, reduce operational costs and to standardize core service offerings. Due to its deeper integration in service delivery, it has witnessed a dramatic pressure on the mainstream of core offerings and it has influenced customer participation in service delivery more widely possible in greater scopes.

Both the current and past studies on review of literature shows that; their exist plenty of such studies that focuses mainly on pointing out the core service quality factors in the traditional banking environment, where interaction , for instance, communication between employees and customer is mainly through interactive communication.

On the contrary, there are only a few studies that have majored on investigating the contributions or rather the attributes of technologically feasible service delivery channels in the banking sector. (Joseph et al, 51) did carry out a study to investigate the define role that technology do play in Australian banking sector based on (Hemmasi et al, 12) priority performance grid and outlined a six-factor model that comprises of; accuracy/convenience, feedback/complaint management, efficiency, accessibility, queue management and customization.

(Madu & Madu, 34), proposed a fifteen dimension model of electronic quality for virtualized operations, these are; structure, performance, reliability, features, serviceability, trust, reputation, empathy, storage capability, aesthetics, security and system integrity, assurance, responsiveness, customer and web store policies, and product/service differentiation. (Santos, 23), suggested two core dimensions of quality service in respect to the revolutionary e-commerce; incubative and active, each of this do consist of six sub-factors.

(Mols, 72) pointed out that customer appreciation of new technology feasible channels of service delivery in retail banks may bring about a dramatic change in the manner in which retail banks build and maintain solid relationships with their regular customers. (Al-Hawari et al, 15) suggested five strategic dimensions of automated service quality; telephone service banking, automated teller machine service, price perceptions, internet banking service and core service. The immense introduction of new technologically based service delivery channels has crafted customer participation more efficient and researchers ought to adopt and appreciate new ways to conceptualize service delivery channels that are of high interface technologically, as well as to take into wider consideration the contributions of all electronic delivery channels.

(Ostrom, 63) in his study expresses that; cross-disciplinary work is essential for effective service designing. He further argues that service design involves a wider scope of orchestration of places, processes, clues and interactions that together design holistic service experience for customers. This is enforceable in the current society through the adoption of technology interfaces. Thus, it is of great importance to adopt and explore the impact of technology interfaces on service quality as most customers in retail banking industry opt to use technology interfaces for interaction purposes. A significant number of scholars identify internet and telephone banking, automated teller machine as the main delivery channels for retail banking.

Internet Banking:

Internet banking is a system that enables bank customers to access their accounts and general information related to bank products and services through the use of a bank’s website, without necessarily using faxes, sending letters or making telephone confirmation calls. Internet banking differs from online banking through the fact that; it provides worldwide connection from any place on earth, and it is also universally easily accessible from any internet linked computer. Internet banking also includes; provision of retail and small value banking services and products through electronic channels, it also includes large value electronic payments and any other wholesale banking services delivered electronically. (Sullivan & Wang, 44) points out that, internet banking involves a system of process innovation that allows customers to handle their respective banking transactions without necessarily paying a visit to the bank tellers. More so, it allows non-customers to access virtual banks through the public network, whereas, phone banking or personal computer banking provides personal networks that are limited to the existing client.

Types of Internet Banking:

(Henry, 20) from his research paper identifies three kinds of internet banking that are mostly used by retail banks across the globe; these are; informational, transactional and communicative.

Informational internet banking; overtime, it has been identified as the fore level of internet banking. As a norm, a bank ought to have strategic marketing information in relation to the bank’s products and services on a specific portal. The risk seizes to be minimal as informational systems hold no path between the bank’s internal network and the server.

Communicative/simple transactional; it allows a variety of interaction between the bank’s system and the bank’s customer. This type of interaction is always limited to account inquiry, e-mail, loan application or the static file updates. However, this type of internet banking does not permit any type of funds transfers.

Transactional; this is the most advanced type of internet banking, it allows customers to electronically carry out fund transfers from their respective accounts, to pay bills and conduct other online banking transactions.


With the diverse structural changes in the financial sector that proves to impose increased pressure for improvements in effective communication between the customer and the service provider. In the recent past, the norm of effective face-to-face communication between the staff and the customer is fading with the advancements in technology. (Zineldin, 27) argues that, in considering the need to effective communication and relationship development between the customer and the staff, it never works out well without the appreciation of the new technology. (Kapoulas et al, 34) presents this phenomenon as technological marketing; they regard it as amalgamation of marketing and technology which tends to strengthen the relationship building process. The following technological interfaces that relates to efficient service delivery and also that works to shape customer preferences on banking services across the retail and corporate sector;

Automated Teller Machine: this is the frequently used channel for electronic transactions. It allows bank customers to carry out their banking transactions whether depositing or withdrawals, twenty four (24) hours a day.

Telephone banking; this form of banking provides an interactive staff to customer relation, the customer is able to inquire about account payments, bank cheque or account balances.

Internet banking; with the application of internet banking, significant savings can be realized in customer acquisition portal. Research suggests that the fill cost to procure new accounts through the use of a website can be within the range 15-45% which is significantly lower when compared to bank branch or a call center. Nonetheless, internet banking is designed to offer assistance, for example, online live chat. These procedures reduce disposal rates for all sales transactions. Thus e-commerce and internet banking are the potential transformational forces across all industries and majorly in the financial service sector.

Communication and call center services; building and maintaining solid relationship with customers that runs short of physical presence of an acting bank personnel trust must be core in fostering customer loyalty. Communication is a chief tool in building and maintaining this trust, divided communication between the customer and the staff personnel from the bank. Call center plays a major role in facilitating these useful cooperation. With the modernized forms of recording technologies, contact or rather call centers can process and record individual customer complaints concerning the self-service centers and alternatively provides meaningful feedback and insight to various departments that develop these avenues.



This chapter entails the following; research design, the conceptual framework of the study, empirical framework specification, definitions and measurement of variables, the type of data and sources, data collection procedures and a brief statement of data analysis.

Research Design;

The research will major on descriptive design; thus it will facilitate collection and in depth analysis of data. This is because the method is appropriate for collecting both descriptive and explanatory data. According to (Kothari, 54), descriptive research design is used when the problem has been defined specifically and where the researcher has certain issues to be described by the respondents about the problem. 

Type of Data and Sources;

The research will major on the use of questionnaires as an instrument of data collection. Both open-ended and closed questionnaires will be used in the study. A bit of observation method will also be used to supplement answers and make opinions on the topics.

Data Collection Procedures;

The research will be conducted by first obtaining an introductory letter from the university; it will then be followed by obtaining a legal permission from the legislative office at the area of study. The research will commence through use of questionnaires as the major method of data collection.

Data Analysis;

Data will be analyzed through editing the questionnaires for accuracy of information, summarization and classification of the data and lastly analysis of the given data. Analysis will be carried out through use of measures of central tendency i.e. mean, mode and median, also through; regression analysis, correlation analysis, use of variances and lastly ANOVA test.

Use of bar charts and tables will also be used as methods of data representation.

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