Factors influencing customers to use E-banking in Kingdom of Saudi Arabia

Over the past few decades banking sector has chosen new methods of banking based on the huge progress took place in information technology, this gave rise to what is known now as e-banking. The main aim of e-banking is to provide customers with a much faster and continuous banking services with low cost. To keep pace with this evolution, banks competed in development and delivering of e-banking to their customers. Here, it became clear that part of the customers, who were been used for a long time to the old traditional banking system, for some reason or another were not ready to accept the new e-banking. To ensure a successful transition from traditional to e-banking it becomes necessary to know the obstacles and reluctance factors that make customer hesitant towards this new electronic banking service. This research paper elaborates and discusses factors that have an influence on customers towards using e-banking services in Kingdom of Saudi Arabia. In other hand there are many cases which portray e-banking system to be lack of security and trust and these are also discussed in this research. Result show that reliability and adoption of e-banking system can be improved among customers when banks succeed in removing the basic fears that prevent customers to shift from the traditional banking system. Retail banks have to show concern on solving customer complaints and problems, to convince hesitant customers with the usefulness, the ease of use, the reliability and the friendly of e-banking services compared to the old one.