At first, I would like to thank God to give ability with knowledge and wisdom to undertake work like this research study. Secondly, my cordial love and honor to my module tutors and dissertation supervisors who have supported me with their suggestions, lecture sheets, notes, and guidelines. Thirdly, I would appreciate to writers and publishers of the related books, journals and websites on these research subject areas. Fourthly, I bless my parents who have supported me mentally with motivation, advice and suggestions, and financially to complete my study here in the UK. Finally, my friends and relatives who live or work with me would be appreciated for their support through giving me opportunities to work on my research work attentively.
The importance of internet banking has been significantly increased over the last decade and today, and a large proportion of customers prefer to use the products and services of those banks which are offering internet banking. The recent technological advancements in different sectors have increased the importance of providing products and services to the customers in a way that is effective and helps to deliver the products to the customers in a convenient way. The introduction of internet banking is considered to be a revolution in the banking industry and the internet has been widely used by different types of organizations and it is also playing an important role to promote banking products and services. As a result, all of the modern and dynamic financial institutions including Lloyds Banks are providing extra care on customer acquisition and retention with improved customer loyalty. Therefore, they are looking for more attractive and strategic digital tools in this digital era to attract their consumers. Thus, nowadays Internet Banking and its services are becoming under deep consideration of the banking industry including Lloyds Bank. Although Internet Banking can contribute a lot to attract consumers and to make them loyal, it can have some negative impacts on both customers and financial institutions including Lloyds Bank. In consequence, Lloyds Bank needs to find the impacts of Internet Banking on its business operation to gain improved customer retention and acquisitions.
The aim of this research study is to identify and assess the impact of internet banking on customer loyalty levels of Lloyds Bank to suggest Lloyds Bank improve its existing Internet Banking to improve customer loyalty. The objectives of the study are: a) to review the concept of Internet Banking, customer loyalty, and the impact of Internet Banking on customer loyalty; b) to explore the Internet Banking services used by Lloyds Bank in their business operation; c) to find out the weaknesses of Internet Banking services of Lloyds Bank in compare with widely used ones, and d) to suggest Lloyds Bank for improving its Internet Banking services so that it can attract more consumers and make them loyal.
The undertaking research has benefited in different ways. First, it has developed and extended the researcher’s knowledge and understanding of how to conduct effective research work. Secondly, it has taught the researcher how to conduct research in the real field on participants and how to collect data through secondary sources and primary sources like interviews and surveys. Thirdly, it has taught the researcher to review the literature critically on the research subject areas. Fourthly, it has developed the researcher’s understanding of research methodologies including research philosophy, research designs, data collection methods, data analysis techniques, research reliability and validity, and research ethics. Finally, the researcher has been able to find a solution to the proposed research’s problems, which will support Lloyds Bank to improve Internet Banking services to improve customer retention and loyalty.
The researcher has applied a number of methodologies and methods to conduct the research work. As research philosophy, the researcher has used pragmatism strategies in this research work. The researcher’s ontological view was subjective and objective, axiological position was value found. The researcher’s epistemological position was analytical and positivism and the data collection method was both quantitative and qualitative. Both deductive and inductive research approaches have been applied in this study. Both primary and secondary data sources have been used to collect the required data.
The primary data was collected with the help of a questionnaire survey and interview method. The survey was conducted with the employees of Lloyds Bank and the researcher has arranged the interview with the branch manager of Lloyds Bank. For the interview, the sample size was five people who come from PC World management of different branches. For the survey, the sample sizes were 50 randomly chosen consumers of different ages from 15 to 60 years where 25 were male and 25 were female. The interview and survey were conducted directly by meeting the participants. The researcher has collected secondary data through academic journals, books and articles.
Different kinds of analytical tools have been used to analyze the collected data from both primary and secondary data sources. To analyze the qualitative data come from the literature review the content analysis technique has been applied. To analyze the quantitative data different software applications including MS Excel Sheets, and MS Word have been used. For statistical analysis, the ANOVA and T-test techniques have been applied in the undertaking research work. For collecting valid and reliable data the code of conduct of research ethics has been followed appropriately.
The research findings show that the banking services offered through the internet are getting popular day by day and it is helping out the banking firms to increase their business revenue and expand their customer base. The research outcomes also show that the internet in the banking sector has created a positive impact on the business operations and profitability of the organizations. In addition, Internet Banking can play an important role in Lloyds Bank’s business operation improving its customer retention and acquisitions. It will also support Lloyds Bank to improve its communication and interaction with consumers, and to identify the consumer needs and expectations to follow the guidelines of this study. On the other hand, the undertaking research has found some weaknesses of Lloyds Bank’s Internet Banking services: a) it should improve its digital communication channels to improve interaction with consumers; b) it should take initiatives to make sure of the privacy of customer personal information and accounts details including balances; c) it should concentrate on customer feedback keeping mind that negative comments may spread out instantly among a large volume of customers.
Chapter 1: Introduction
This chapter has introduced the undertaking research work. At first, the chapter has focused on the research background, where the researcher first discussed the importance of studying this particular research. Consequently, the researcher has first discussed the importance of internet banking services and customer loyalty from the banking business perspective. In addition, the researcher has discussed why internet banking is important from the customer’s point of view. Then, the researcher has discussed the research background which has led the researcher to conduct the research study in the context of Lloyds Bank. In the second part, the chapter has discussed the research problems and the possible way of sorting out the issues. In the third part, the researcher has discussed the research rationale. In the fourth part, the researcher has defined the research aims and objectives, and the research questions. Finally, the researcher has summarized the chapter…………………….
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