Chapter 1 THE PROBLEM AND ITS BACKGROUND

Introduction The world is changing by the use of some technologies that considered being the key driver for these changes around us. An analysis of technology and its uses show that it has permeated in almost every aspect of our life. Many activities are handled electronically due to the acceptance of information technology at home as well as at workplace. The concept and scope of e-banking is still evolving. It facilitates an effective payment and accounting system thereby enhancing the speed of delivery of banking services considerably. Most people are very familiar with how a bank operates. The concept is very simple, if the customer takes his money to the bank and they will keep it safe for him, and he can collect it later. There are other uses of a bank, such as loans and interest. But with nearly everything going digital, including money transfers, paychecks, bill payments and debit cards, cash is practically becoming obsolete. With online banking, the customer wont ever have to worry about full access to his account. He have quick and easy 24-hour access from anywhere in the world. The online bank wont ever be closed for a holiday or for maintenance. The customer wont ever have to rush over to the bank after work and fight lines. Other bank accounts don't commonly offer the best deal available when it comes to saving the customers money. Also, because online banking services dont have to rent a building, they often offer higher interest rates with their savings accounts. By using other services on a bank, mostly it is time consuming and to make money, they often charge expensive fees to consumers.

Chapter 2 REVIEW OF RELATED LITERATURE AND STUDIES

In this chapter, the researcher have compiled several pieces of related literature and studies gathered from books, newspapers, articles, journals, theses, and dissertations and in the internet. It enables researchers to widen the horizon and elaborate more ideas which will contribute to further comprehension of the study. The researcher had gathered several pieces of data regarding the effects E-banking to the depositors of a private bank. Literature This portion includes quotations of authors of some books and references, which may served as the basis of solving the problems encountered by the researchers.

The vast majority of the banks that avoided Internet banking in the beginning did so because they simply did not see the benefits of using it. Polatoglu & Kin (2001) state that the average internet banking transaction costs the institution only one twentieth of teller transaction.

On the importance of trainability, Rogers (1983) and Agarwal and Prasad (1998) stated that potential adopters of new technology, who are allowed to experiment with it, would feel comfortable with it and thus be more likely to adopt it.

In spite of these challenges Internet banking has been a huge success, it has even been described as that one of the most important changes within the retail financial industry in the last hundred years as Hiltunen et. al., (2004) stated.

Chapter 3 METHODS OF RESEARCH

This chapter presents the methods of research used in this study or the way in how the study will be conducted, the techniques to be used in conducting the problem, the subjects of the study, the instruments to used to come up with the data needed and the way to come up with the result RESEARCH DESIGN In this study, the researchers used the experimental method of research, which is the objective, systematic, controlled investigation for the purpose of predicting and controlling phenomena and examining probability and causality among selected variables. Experimental method of research is used to utilize or find out what will be the effect or result of a certain problem after the data have been gathered and controlled in a certain condition. The approach used in this study is quantitative approach, which is the type of research involving formal, objective information about the world, with mathematical quantification. It is also be used to describe test relationships and to examine cause and effect relationships. SAMPLING TECHNIQUE The researchers used the stratified sampling technique in this study. Stratified sampling is done through systematic technique. In the study the categories of the samples are the customers of a private bank that uses traditional banking transaction, the customers of a private bank that uses E-banking and the banking staff.