COLLEGE OF BANKING AND FINANCIAL STUDIES

DEPARTMENT OF UNDERGRADUATE STUDIES

RESEARCH PROJECT -1

RESEARCH PROPOSAL

1. Title of the Research

Ans: -The impact and importance of online banking with respect to bank muscat.

2. Subject Area of Research

Ans: –Strategy.

-Technology and science.

3. Introduction

A bank is a financial institution that oversees the flow of money. With each new financial event, the financial system is constantly developing and upgrading. As a result, banking is becoming simpler, quicker, and more inclusive. Organizations in the banking business are always looking for ways to improve their customer service in order to remain relevant in a highly competitive market. Online Banking has been a vital offering for most commercial banks in Oman during the last several years. One of them is the Muscat Bank. One of Oman's largest banks, Bank Muscat gives numerous financial services, some of which are retail banking and treasury administration. Online banking is becoming the most widely used method of transferring money between private persons. It is because individuals can do all of their banking without having to go to the bank and in a short period of time.

Nowadays, it's very impossible to find a bank that doesn't provide an online banking option. Members of Bank Muscat have access to online banking, which allows them to do business with the bank at any period and from any location. Every day of the year, the service is open round-the-clock. People or businesses may handle all of their banking and financial affairs from the comfort of their own home or office thanks to online banking. They have more choice over how and when they bank using the simple navigation. In addition to a wide selection of functions, consumers will also be able to select the most secure option for their needs. With online baking, there is no need to visit the branch or worry about branch hours. Higher competition in the banking business and a wider selection of products have been brought about through online banking. Online banking has rendered both clients and institutions more exposed to cybertechnology assaults, despite the fact that it was supposed to be a source of development and better revenue for banks (Mezioud and Smai, 2016). According to the findings, the internet banking system at Muscat has both positive and negative effects on the bank.

Both clients and banks gain greatly from online banking, but there are also significant hazards involved. Higher client fulfilment and access to new consumers and workers have all been a result of online banking. Nevertheless, as the number of smartphones and personal computers grows, so does the risk of online banking. Online banking can expose the bank to a variety of hazards, including those related to their legal status, their reputation, and their personal information (Khrais, 2015). In spite of the danger, Muscat bank has put in place procedures to safeguard both the consumer and itself, efforts that entail educating clients via the primary website.

4. Literature Review

For both customers and providers, online banking is a boon due to its many benefits. Online banking is still one of the most pocket friendly and effectual ways to offer services to customers, according to the viewpoint of a bank. Furthermore, the approach of online banking has been an interesting method of maintaining current customers and gaining new customers. Numerous advantages accrue to banks, but among them are the following: mass customization, lower communication costs, more effective marketing, and so forth. In addition, end customers stand to gain significantly. These include, but are not limited to, cheap transaction fees, international service availability, and higher frequency of account monitoring. In addition, it's worth noting that research suggests that there are various elements that stimulate the use of online banking. (AL Shekaili, Karim and Farhana, 2020)

Across the globe, banks and non-banking sectors have formed a fierce competition in the banking industry. By embracing new technology and putting it to good use, financial service givers may increase their client base while also retaining their current ones. When it comes to processing consumer requests like loans and withdrawals, banks have implemented more technology technologies that makes the procedure more efficient while also making banking paperless. Study after study has found that internet banking has improved the relationship between clients and their banks, compared to a decade ago. Banks use internet banking to save costs, enhance income, and provide a more convenient service to their consumers.

It is becoming extremely difficult for banks to win market share and keep clients in the digital era. The multichannel approach is presently the most common trend in the banking business since consumers are transitioning from traditional channels to digital ones. A commercial bank's Internet banking service is presently the most common digital route. Clients may now bank with greater ease, speed, and control thanks to the system's implementation. Clients are happier and more loyal, which is the true objective of all banks in today's environment. Internet banking, on the other hand, has enormous promise. It would be a good source of income for banks; it would also cut operational costs, which would eventually improve the bank's productivity. Internet banking has become a crucial service for banks, and if they don't supply it, they risk losing customers or damaging their image. (Salim Ba Awain, Jantan and Sukati, 2021)

It has been shown that internet banking has been a positive factor in the development of firm-to-firm ties. Bank Muscat, one of Oman's largest, has been a pioneer in advancing internet banking to its fullest potential. Since internet banking is becoming more popular, banks are realizing that they can offer more banking offerings to their consumers because of this trend. In order for clients to use online banking, they must agree to a range of services including payments, online loan choices, fraud prevention, and financial transfers between banks (Sha and Mohammad, 2017). Conventional banking has been mostly obliterated by online banking, and this has shaped the present image of banking. With online banking, banks now have access to a far broader spectrum of staff and consumers.

Although internet banking has many advantages, the hazards have grown. Both strategic and tactical risks are involved. Banks and their consumers are equally at risk from the dangers of internet banking (Khrais, 2015). Online banking has led to an increase in legal difficulties. Since Muscat bank needs to expand and attract consumers from beyond Oman, internet banking is the greatest solution. Working with clients from other nations whose rules vary from the bank's might result in legal violations that the bank is unaware of.

As a result of breaching client protection rules, the bank incurs additional costs. Higher technological dependency puts internet banking at a significant risk of vulnerability or attack. Inside and outside threats to the bank's security now exist. Workers may be able to expose bank security flaws to attackers from the inside. Clients may fall prey to hackers by replying to emails that appear to be from a bank, but are in fact from fraudsters. Consequently, banks must undertake frequent audits and tests to identify any weaknesses in the internet banking system. Client education is also provided by banks on how to keep their accounts safe from fraudsters. The Muscat Bank's website provides thorough information for customers on how to prevent unauthorized access to their accounts by periodically changing their passwords and looking for indicators of a legitimate bank website. (Shevtsov, 2020)

It's becoming more usual for internet banking consumers to have a tarnished image. Secret data, like usernames and passwords, were exposed by the heart bleed attack, which resulted in the disclosure of a large amount of private information. Many internet businesses lost consumers as a result of such a large-scale security compromise. Consumers lose faith in firms that are subjected to these attacks on a daily basis (Yap, Wong, Loh and Bak, 2010). The heart bleed assault is a persistent threat to Bank Muscat. If a large-scale attack on banks goes unreported for many days, it might do permanent harm to a company's brand.

5. Significance of the research

To draw in new clients and save operational expenses, financial institutions have created online banking services. The study's goal is to look at the positive and negative effects of internet banking at Bank Muscat. Additionally, this research will allow me to examine the Bank of Muscat's internet banking system in greater detail.

6. Objectives of the research

i.To determine the importance of online banking to bank Muscat

ii.To identify the impact of online banking to bank Muscat

iii.To comprehend the Bank Muscat’s online banking system.

iv.To afford suggestions for enhancements of Bank Muscat’s online banking system

7. Research Questions OR Research Problem

i.What advantages does the bank Muscat get from online banking system?

ii.What benefits does the clients gain from online banking platform in bank Muscat?

iii.What impacts does online banking have to bank Muscat?

iv.Has online banking contributed to the success of Bank Muscat?

8. Research hypotheses

i.Online banking has contributed to the present higher status of Bank Muscat.

ii.Bank Muscat has benefited a lot from online banking

iii.The customers of Bank Muscat have benefited a lot from online banking

iv.Online banking has a lot of implications to Bank Muscat

9. Research Methodology

9.1. Research Design

Qualitative and quantitative data are necessary for the study. Consequently, this study will use both qualitative and quantitative research methods. Quantitative Research Design involves a form of research design that uses numbers and statistics to investigate and interpret data. It is important to understand why a certain theory is there and what the participant's response would be in order to do qualitative research (Cook and Cook, 2016). It enables a researcher to get to a correct conclusion. In Qualitative Research Design, case studies are utilized to get an understanding of diverse social issues. As a result of these approaches, the evidence gathered may be used to efficiently and clearly handle the research question. Generally, it is determining what kind of evidence is required to test a theory, assess an experiment, or appropriately characterize and evaluate the significance of an occurrence that may be observed. (Ishtiaq, 2019)

9.2. Data collection methods

Questionnaires and focus group interviews should be used as the key techniques of data collecting in the research. Research volunteers are more likely to provide reliable information when asked to complete straightforward, well-structured questionnaires and interviews. (Paradis et al., 2016)

9.3. Sampling frame

Clients, IT staff, and bank management are the key sources of data for the study's scope. Thirty participants would be a sufficient number to do the study. According to the researcher, the study would last several months, which is enough time to gather enough data.

9.4. Data analysis approach

Tables will be used to arrange all of the numerical data collected for this study. The data will then be analyzed using a statistical software for social sciences. The data will be transformed into pie charts so that they may be easily interpreted and discussed. (Paradis et al., 2016)

10. Research Limitation

Online banking of bank Muscat embraces all levels, even international level since online commerce may take place anywhere in the universe. Nevertheless, the investigation will solely focus on Muscat's branches within the city.

11. Research Structure

When writing a research project, one is supposed to offer the research structure, which is mainly the overview of the project towards the conclusion of the introductory chapter. Four chapters are the goal of this study. The purpose of the first chapter is to present the research's background, issue statement, conceptual framework, and study objectives. There is a literature review in the second chapter that will address some of the existing research on the topic. The third chapter focuses on describing the data gathering and analysis methodologies utilized in the study. Detailed conclusions and recommendations based from the previous chapter's studied data will appear in the final chapter. (Ishtiaq, 2019)

12. Outline of proposed activities for RP-2 (Implementation plan, timelines and milestones)

13. References

1) AL Shekaili, A., Karim, A. and Farhana, N., 2020. A Study on the Customer Services and Quality for the Banking Sector in the Sultanate of Oman. International Journal of Academic Research in Accounting, Finance and Management Sciences, 10(1).

2) Al-Ajam, A.S. and Md Nor, K., 2015. Challenges of adoption of internet banking service in Yemen. International journal of bank marketing, 33(2), pp.178-194.

3) Bankmuscatonline.com. 2021. Bank Muscat – FAQ. [online] Available at: <https://www.bankmuscatonline.com/corp/L001/bankmuscat/helpfiles/faq.html> [Accessed 18 December 2021].

4) Cook, B. and Cook, L., 2016. Research Designs and Special Education Research: Different Designs Address Different Questions. Learning Disabilities Research & Practice, 31(4), pp.190-198.

5) Drigă, I. and Isac, C., 2014. E-banking services–features, challenges and benefits. Annals of the University of petroşani, Economics, 14(1), pp.41-50.

6) Ishtiaq, M., 2019. Book Review Creswell, J. W. (2014). Research Design: Qualitative, Quantitative and Mixed Methods Approaches (4th ed.). Thousand Oaks, CA: Sage. English Language Teaching, 12(5), p.40.

7) Khrais, L., 2015. Highlighting the Vulnerabilities of Online Banking System. The Journal of Internet Banking and Commerce, 20(3).

8) Laukkanen, T., 2016. Consumer adoption versus rejection decisions in seemingly similar service innovations: The case of the Internet and mobile banking. Journal of Business Research, 69(7), pp.2432-2439.

9) Mezioud, B. and Smai, A., 2016. The Cybercrimes on Financial and Banking Services: The Challenges and Treatment. p.81.

10) Montazemi, A.R. and Qahri-Saremi, H., 2015. Factors affecting adoption of online banking: A meta-analytic structural equation modeling study. Information & Management, 52(2), pp.210-226.

11) Paradis, E., O’Brien, B., Nimmon, L., Bandiera, G. and Martimianakis, M.A. (Tina) (2016). Design: Selection of Data Collection Methods. Journal of Graduate Medical Education, [online] 8(2), pp.263–264. Available at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4857496/.

12) Salim Ba Awain, A., Jantan, M. and Sukati, I., 2021. Assessing the Effect of Integration in Logistics Sector on Economic Growth: Evidence from Sultanate of Oman. International Business Research, 15(1), p.35.

13) Sha, N. and Mohammad, S., 2017. Virtual banking and online business. Banks and Bank Systems, 12(1), pp.75-81.

14) Shevtsov, Y., 2020. Digital banking in the age of virtual business. Obshchestvo i ekonomika, (2), p.5.

15) Shifa Fathima, J., 2020. Challenge Management of Banking Services – with Special Reference to Virtual Banking Service Challenges. Shanlax International Journal of Management, 7(3), pp.57-66.

16) Yap, K., Wong, D., Loh, C. and Bak, R., 2010. Offline and online banking – where to draw the line when building trust in e‐banking? International Journal of Bank Marketing, 28(1), pp.27-46.

14. Code of Ethics & Learner Declaration

This is my own research, and I am not infringing into copyright, ethics or confidentiality issues. I have taken care of health, safety, environmental issues, and governmental policies. I certify that this assignment is my own work and not copied or plagiarized. It has not previously been submitted as part of any assessment for this qualification. All the sources, from which information has been obtained for this assignment, have been referenced. I further certify that I have read and understood the College of Banking and Financial Studies rules and regulations about plagiarism, and I agree to be bound by them.

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