Dr. Carlos S. Lanting College

DR. CARLOS S.
LANTING COLLEGE
SAFETY AND SECURITY OF ONLINE BANKING: THE PERCEPTION OF THE ONLINE BANKING
USERS IN DR, CARLOS S. LANTING COLLEGE
SAFETY AND SECURITY OF ONLINE BANKING: THE

PERCEPTION OF THE ONLINE BANKING USERS IN DR.
CARLOS S. LANTING COLLEGE
A Research Project
Presented to the Faculty of the
Basic Education Department / Senior High School
DR. CARLOS S. LANTING COLLEGE
Quezon City
by:
Apolonio, Jhanna Erica

Banzuelo, Airalene V.
Dordas, Alvin Christopher
Javeñar, Johannes Gwenn B.
Petros, Monique
Rodriguez, Shanaia Twain
Ruiz, Kristine Angelie C.
In Partial Fulfillment of the Requirements for the Program of
SENIOR HIGH SCHOOL

Chapter 1
INTRODUCTION
Background of the Study
Online banking refers to banking services where depositors can manage
more aspects of their accounts over the Internet, rather than visiting a branch or
using the telephone. Online banking typically is comprised of a secure connection
to banking information through the depositor’s home computer or another device.
Banking is one of the largest financial institutions constantly explores the
opportunity of technology enables to provide a better customer experience and
convenience.
According to (Shen ,Gong & Bao ,2009) From the beginning of the new
century to the rapid development of global information technology today, with the
popularity of the Internet and the rapid construction of information technology,
more and more people involved in the use of the Internet. Especially in the past
two years, online surfing, e-commerce, online chat, e-government, Internet
banking, online shopping transactions, online games, this series of network
activities, has become a hot application of today's society. With the increasing
reliance on the network and information technology in all aspects of society, the
network has become an indispensable part of work and life for most people. The
rapid development of the network brings closer the distance between real life and
virtual world, changed the way people work, study and live. It can be sure that now
the human life becomes more relaxed because of network. However, the network
has brought us great convenience, but also brought some difficulties. Due to the
design defects of the Internet itself and its complexity, openness and expanding of
the software scale, the application is more and more complex, making the hidden
danger of the network increased dramatically. Therefore, the security of the
network has become one of the important factors hindering the process of
information technology. Today, for many users, they know that they are facing a
certain network threat. But from where, what will happen, are not very clear for
many people. Generally speaking, ordinary network users mainly face Internet
security issues. Computer viruses, cyber scams, data loss, botnets, phishing,
privacy leaks, are a few example of network security threats. The recent impact of
large events, such as: Panda burning incense virus, Trojan industry chain
exposure, once macro virus, Trojan horse site-linked malware, makes the network
security issues become the focus of attention, even to worldwide audience.From
the beginning of the new century to the rapid development of global information
technology today, with the popularity of the Internet and the rapid construction of
information technology, more and more people involved in the use of the Internet.
Especially in the past two years, online surfing, e-commerce, online chat, e-
government, Internet banking, online shopping transactions, online games, this
series of network activities, has become a hot application of today's society. With
the increasing reliance on the network and information technology in all aspects of
society, the network has become an indispensable part of work and life for most
people. The rapid development of the network brings closer the distance between
real life and virtual world, changed the way people work, study and live. It can be
sure that now the human life becomes more relaxed because of network. However,
the network has brought us great convenience, but also brought some difficulties.
Due to the design defects of the Internet itself and its complexity, openness and
expanding of the software scale, the application is more and more complex,
making the hidden danger of the network increased dramatically. Therefore, the
security of the network has become one of the important factors hindering the
process of information technology. Today, for many users, they know that they are
facing a certain network threat. But from where, what will happen, are not very
clear for many people. Generally speaking, ordinary network users mainly face
Internet security issues. Computer viruses, cyber scams, data loss, botnets,
phishing, privacy leaks, are a few example of network security threats. The recent
impact of large events, such as: Panda burning incense virus, Trojan industry
chain exposure, once macro virus, Trojan horse site-linked malware, makes the
network security issues become the focus of attention, even to worldwide
audience.
In the philippines, according to Mastercard’s Online Shopping Behavior study
2012, internet usage had been increasing rapidly and more Filipinos had been
shopping online. However no research paper has yet been made to assess the risks
on online transactions in the Philippines despite its popularity. Likewise, there are
no academic endeavors to understand the risk faced by individuals who transact
online business. This prompts the need to conduct a study to assess the risks
associated on online transactions and characterize online transaction users
specifically from Davao City.
Statement of the Problem
The main purpose of this research is to determine the safety and security
level of online banking as perceived by the employees in Dr. Carlos S. Lanting
College (DCLC) during the school year 2018-2019.
Specifically, it aims to answer the following questions:
1. What is the demographic profile of the respondents in terms of the following:
1.1 age;
1.2 gender;
1.3 civil status;
1.4 educational attainment; and
1.5 position?
2. What is the safety and security level of online banking services as perceived by
of the employees of Dr. Carlos S. Lanting College (DCLC) in terms of:

2.1 view transactions;
2.2 pay bills;
2.3 send money;
2.4 fund transferring; and
2.5 Foreign exchange transactions?
3. Is there a significant difference on the perception on the safety and security level
of online banking services when respondents are grouped according to their
profile?
4. Is there a significant relationship on the perception on the safety and security
level of online banking services when respondents are grouped according to their
profile?
5. What are the problems encountered by the employees in online banking?
6. What recommendations can be drawn from this study to improve the online
banking?
Scope and Delimitations
This study aims to determine the safety and security level of online banking.
The respondents of this study will be the online banking users in Dr. Carlos S.
Lanting College (DCLC), they will be randomly selected to answer the interviews
and questions.
However, the researchers only have limited time in conducting this
study and due to continuous and sudden change of the online banking practices,
what is relevant today might be irrelevant tomorrow. The only respondents that will
be used in this study are the teachers from the Basic Education Department and the
selected banks that will be involve In this is study is Banco de Oro (BDO), Bank of
the Philippines Islands (BPI) and Security Bank. In determining the safety and
security level the survey questionnaire will be used in which the survey
questionnaire will undergo the pilot testing and cronbach’s alpha to measure the
reliability of the constructs and in determining the challenges potency in-depth
interview will conducted among the respondents. The whole duration of this
academic undertaking will cover the second semester of the school year 2018-2019.
Significance of the Study
Online Bankers – this study will provide information about the safety and security of
online banking it will serve as a guide for them to be aware about the online banking
practices.
Future Researchers -
Chapter 2
REVIEW OF RELATED LITERATURE AND STUDIES
Local Studies
Local Literature
Foreign Studies
According to Sumra (2011) the proliferation and penetration of internet has
opened new horizons and scenarios for the retail banking industry. The retail banks
are now providing their products and services through the electronic medium; e-
banking. E-banking is considered to have a substantial impact on banks’
performance. The aim of this paper is to examine the impact of e-banking on the
profitability of Pakistani banks, in particular. This paper covers twelve banks across
Pakistan. The study is qualitative in nature which examines different objectives which
determine the performance of banks mainly in terms of profitability. It also discusses
the effect of customers’ literacy on provision of services from banks’ perspective. It
also discusses the basic motive of banks to adopt e-banking services. The study is
done through taking interviews from the managers of these banks. The results show
that e-banking has increased the profitability of banks; it has enabled the banks to
meet their costs and earn profits even in the short span of time. The illiteracy of
customers is not regarded as a major impediment in provision of their products and
services. For banks, the main motive to adopt e-banking is to increase their clientage
and to retain their customers. The profitability of banks has augmented in
transitioning to e-banking medium.
According to Kamakodi (2008) financial sector is the spinal cord of sovereign
economy of any country. India is no exception. The technology adaptation in banking
operations in India was a few decades behind that of in developing countries. Since
early 1980s, Reserve Bank of India (RBI, Regulator) has been pushing the Indian
banks towards computerisation as a mechanisation of operations. Technology was
seen as a key business enabler in six vital areas of banking viz. augmenting profit
pool, operational efficiency, customer management, distribution and reach, product
innovation and efficient payment and settlement (Shastri, 2004). RBI expected that
these developments in the areas of housekeeping and decision-making will improve
the customer service levels and productivity, ultimately resulting in better profitability.
In recognition of the need to introduce greater competition with a view to achieving
higher productivity and efficiency of the banking system, RBI issued guidelines in
January 1993 for the entry of “New Private Sector Banks” (NSPB). Subsequently,
nine new commercial were granted license to start banking operations. Liberalisation
coincided with the Information Technology Revolution of the 1990s. New Private
Sector Banks started with 100% computerisation right from the day 1 of operation
and revolutionised the banking service levels in India by matching even banks in
developed countries. New Private Sector Banks (NPSBs) used technology as a

strategic tool for customer acquisition. This made all government-owned Public
Sector Banks (PSBs) and the existing Old Private Sector Banks (OPBs) to go on
defensive to invest in IT to retain their customer base as NPBs gained what PSBs
and OPBs lost.
According to Gupta (2008) Internet banking has attracted the attention of
banks, securities trading firms, brokerage houses, insurance companies, regulators
and lawmakers in developing nations since the late 1990s. With the rapid and
significant growth in electronic commerce, it is obvious that electronic (Internet)
banking and payments are likely to advance. Researches show that impact of
Internet banking on cost savings, revenue growth and increased customer
satisfaction on Industry is tremendous and can be a potential tool for building a
sound strategy. However, it has raised many public policy issues before the banking
regulators and government agencies. Interestingly, reliable and systematic
information on the scope of Internet banking in Indian context is still not sufficient,
particularly what it means to the consumers and the bankers. The paper fills
significant gaps in knowledge about the consumer’s perspective of Internet banking,
trace its present growth and project the likely scenario. The paper presents the data,
drawn from a survey of Internet banking consumers and the services providers
(banks) that offer Internet banking and develops a functional model for maximizing
value to the consumers, which the banks may choose to adopt Internet banking
strategically. The paper identifies the weaknesses of conventional banking and
explores the consumer awareness, use patterns, satisfaction and preferences for
Internet banking vis-à-vis conventional form of banking and also highlights the
factors that may affect the bank’s strategy to adopt Internet banking. It also
addresses the regulatory and supervisory concerns of Internet banking.
According to Omar (2011) The Promotion of online banking technology
enabled the banks to enhance its operations with cost cutting effectively and
efficiently in order to handle daily banking affairs via online banking channel.
Customers are being facilitated by reducing their visits in banks and they can carry
out their transactions via internet or ATM Machines instead of personally visiting the
branches. The researches so far done reveal that mostly the customer of banks are
unaware about online banking services and there is a lack of trust among customers
on online banking services. Especially Pakistan is far behind the developing
countries as a lot of services regarding online banking are not available in Pakistan.
This study examines the customer perception, preferences, problems and
suggestions about online banking in Pakistan. The study reveals that mostly
customers prefer internet banking (IB) services over branch banking due to reliability,
convenience, speed, safety and security, cost effectiveness, user-friendly, and error
free system. In contrast the parallel finding shows that security problems, lack of
trust and knowledge, ATM machine problems etc. affect the adoption decision of
customers of internet banking services. The services which are not in Pakistan e.g.
Cash depositing facility through ATM machines, “SMS/E-mail Alert” Service, Transfer
funds through ATM machines, Payment of utility bills through internet are found most
required / demanding services by the customers in this study. This study will helps
the banks that how they can improve the level of online banking services in Pakistan
and what are the potential issues or services that should be introduced in society to
facilitate the customer in a better way and to compete their rivals in banking industry
as a whole.
Foreign Literature
According to Khandelwal S. (2013) In his research titled on “E Banking:
Factors of Adoption in India” This paper presents the last decade has witnessed a
drastic change in the economic and banking environment all over the world. With
the economic and financial sector reforms introduced in the country since early
1990s, the operating environment for banks in India has also undergone a rapid
change. Increasingly, more and more people are switching to electronic platforms
for executing financial transactions. Internet banking has brought about a 360-
degree change in the entire banking industry. The wider usage of cell phone and
internet certainly seems to be playing a role in blurring physical boundaries and
unlocking a whole new world of opportunities for banks in tapping newer customer
segments and in recording greater volume of transactions. For the banks,
technology has emerged as a strategic resource for achieve in higher efficiency,

control of operations, productivity and profitability. For customers, it is the
realization of their anywhere, anytime, anyway banking dream. This has prompted
the banks to embrace technology to meet the increasing customer expectation and
face the tough competition. This research paper is focused on what are the drivers
that drive consumers towards adoption of E banking. How consumers have
accepted internet banking and how to improve the usage rate were the focus of
research area in this study.
According to Kumbhar V. (2011) In his research paper “Factors Affecting
the Customer Satisfaction In E-Banking: Some evidences Form Indian Banks”. This
study evaluates major factors (i.e. service quality, brand perception and perceived
value) affecting on customers’ satisfaction in e-banking service settings. This study
also evaluates influence of service quality on brand perception, perceived value
and satisfaction in e-banking. Required data was collected through customers’
survey. For conducting customers’ survey liker scale-based questionnaire was
developed after review of literature and discussions with bank managers as well as
experts in customer service and marketing. Collected data was analyzed using
principle component (PCA) using SPSS 19.0. A result indicates that, Perceived
Value, Brand Perception, Cost Effectiveness, Easy to Use, Convenience, Problem
Handling, Security/Assurance and Responsiveness are important factors in
customers satisfaction in e-banking it explains 48.30 per cent of variance. Contact

Facilities, System Availability, Fulfillment, Efficiency and Compensation are
comparatively less important because these dimensions explain 21.70 percent of
variance in customers’ satisfaction. Security/Assurance, Responsiveness, Easy to
Use, Cost Effectiveness and Compensation are predictors of brand perception in e-
banking and Fulfillment, Efficiency, Security/Assurance, Responsiveness,
Convenience, Cost Effectiveness, Problem Handling and Compensation are
predictors of perceived value in e-banking.
According to Pooja Malhotra & Balwinder SINGH (2009) In their research
paper “The Impact of Internet Banking on Bank Performance and Risk: The Indian
Experience”. The paper describes the current state of Internet banking in India and
discusses its implications for the Indian banking industry. Particularly, it seeks to
examine the impact of Internet banking on banks’ performance and risk. Using
information drawn from the survey of 85 scheduled commercial bank’s websites,
during the period of June 2007, the results show that nearly 57 percent of the
Indian commercial banks are providing transactional Internet banking services. The
univariate analysis indicates that Internet banks are larger banks and have
efficiency ratios and profitability as compared to non-Internet banks. Internet banks
rely more heavily on core deposits for funding than non-Internet banks do.
However, the multiple regression results reveal that the profitability and offering of
Internet banking does not have any significant association, on the other hand,
Internet banking has a significant and negative association with risk profile of the
banks.
According to Shannak R. (2013) In their research paper titled “KEY
ISSUES IN E-BANKING STRENGTHS AND WEAKNESSES: THE CASE OF TWO
JORDANIAN BANKS “tried to scrutinize uses mixed method. Research about e-
banking has been conducted from different angles on different topics by a number
of researchers. The paper aims to scrutinize the current status of Jordan’s e-
banking industry, make out its strengths and weaknesses, and use the findings in
formulating future recommendations to make a donation to knowledge in the
chosen area. The choice of the topic was informed by previous studies and
experiences of the researcher and his former students from different countries but
currently focuses on the e-banking industry in Jordan. The methodology used to
achieve the research objectives included carrying out interviews with two local
banking executives, a direct opinion poll for banking customers, and the review of
the extant literature. The research commenced by formulating four hypothesis that
address the positive impact of e-banking for both the banks and their patrons.
However, an inadequate size sample was selected due to research boundaries.
The point of reference of the paper turned out to be explanatory and in the
direction of being a case study within the Jordanian context. This exploratory
research therefore, focused on three main magnitude of e-banking in Jordan

namely; Infrastructure readiness, behavioral influences, and the regulatory
coverage. The findings indicated that while the infrastructure is advanced in
comparison to some of the other regional examples, it was still below the Western
standards. It also has been established that the Jordanian e-banking is still not
trusted enough by the individual clients. Finally, the legal or regulatory coverage in
Jordan was found to be not fully satisfactory yet, although not very unusual from
what exists in some of the most sophisticated country examples that it was
benchmarked with. Some important recommendations to enhance the e-banking
industry are presented, such as; focusing more on the mobile- functionalities and
services for being more advanced than internet services in Jordan, enhancing the
broader e-commerce regulations that are weakening the more advanced local e-
banking regulations, and launching local awareness and familiarization campaigns
which could be undertaken by Jordanian banks.
According to Ankit Kesharwani & Gajulapally Radhakrishna (2013) In their
research paper “Drivers and Inhibitors of Internet Banking Adoption in India”. This
paper research on different banks is on condition that e-banking services, as this
would revolutionize their profits. Since internet banking in India is still in its nascent
stage, it is essential for e-banking institutions to enhance reception and usage of
internet as a banking channel by their customers. This paper has reviewed the
most of seminal studies in the area of diffusion of innovation and makes an attempt
to do an experimental research that looked into the factors that drives and inhibits
internet banking usage in India. An investigative factor analysis followed by a
positive factor analysis has been applied on 362 internet banking users. Findings
resulted in seven factors – perceived benefit, hacking and fraud risk, performance
risk, computer self- efficacy, technology intricacy, social influence, and pricing
concerns. The results suggest that acceptance and usage of internet banking
services can turn into a fundamental concern for future research, as the drivers
overcoming the inhibitors over time at an influencing rate. Moreover, this study also
compares the findings with extant diffusion of innovation literature and identified
several additional factors that can affect internet banking adoption in India
Synthesis
Conceptual Framework
INDEPENDENT DEPENDENT RECOMMENDATION
Demographic The perception of In order to create

online banking
profile of the and rebuilt the trust
users in terms of
respondents of the customers,
the safety and
 Age security levels of banks should take
online banking.
 Gender further strong
 Civil Status security measures
 Educational to every aspects of
attainment the online banking
 Position services and also
develop the
services which can
satisfy customer’s
needs.
Research Hypothesis
Definition of Terms
Foreign Exchange – process of settling accounts or debts between persons
residing in different countries
Automated Teller Machine (ATM) - a computerized electronic machine that
performs basic banking functions (such as handling check deposits or issuing
cash withdrawals).
Banking - the business of a bank or a banker.
Emerged - to come into being through evolution

Chapter 3
METHODOLOGY
Research Design
The Sample
Data Gathering Instrument
The researchers will conduct an interview to know their perspective about
online banking and it will be the basis to gather some information in formulating
the survey questionnaire. The survey questionnaire will be the primary tool for data
gathering that will determine the safety and security levels of online banking.
Data Gathering Procedures
In order to examine the safety and security level of online banking as
perceived by the online banking users in Dr. Carlos S. Lanting College (DCLC) the
instrument that will be used in conducting the data is interview and survey
questionnaires. Through this technique, the researchers will be capable to answer
the following problems.
1. Prepare questions that will be used in conducting an interview.
2. Seek permission to the respondents to conduct a interview, an inform consent will
be provided to the respondents.

3. Conduct interview that will be answered by the respondents and it will be the
guide in formulating questions on the survey questionnaires.
4. Finalize the questions that will help in answering the questions that are
related to the main topic.
5. Seek permission to the respondents to conduct a survey, an inform consent will be
provided to the respondents.
6. Provide survey questionnaire and Select specific respondents that will be
needed to answer the questions.
Data Analysis
Statistical Treatment of Data

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DR. CARLOS S.

SAFETY AND SECURITY OF ONLINE BANKING: THE

Apolonio, Jhanna Erica

In Partial Fulfillment of the Requirements for the Program of

SENIOR HIGH SCHOOL

Background of the Study

Online banking refers to banking services where depositors can manage

using the telephone. Online banking typically is comprised of a secure connection

to banking information through the depositor’s home computer or another device.

Banking is one of the largest financial institutions constantly explores the

opportunity of technology enables to provide a better customer experience and

popularity of the Internet and the rapid construction of information technology,

two years, online surfing, e-commerce, online chat, e-government, Internet

banking, online shopping transactions, online games, this series of network

danger of the network increased dramatically. Therefore, the security of the

security issues become the focus of attention, even to worldwide audience.From

government, Internet banking, online shopping transactions, online games, this

network security issues become the focus of attention, even to worldwide

In the philippines, according to Mastercard’s Online Shopping Behavior study

no academic endeavors to understand the risk faced by individuals who transact

associated on online transactions and characterize online transaction users

specifically from Davao City.

Statement of the Problem

level of online banking as perceived by the employees in Dr. Carlos S. Lanting

College (DCLC) during the school year 2018-2019.

Specifically, it aims to answer the following questions:

1. What is the demographic profile of the respondents in terms of the following:

1.3 civil status;

1.4 educational attainment; and

of the employees of Dr. Carlos S. Lanting College (DCLC) in terms of:

2.1 view transactions;

2.2 pay bills;

2.3 send money;

2.4 fund transferring; and

2.5 Foreign exchange transactions?

of online banking services when respondents are grouped according to their

4. Is there a significant relationship on the perception on the safety and security

5. What are the problems encountered by the employees in online banking?

Scope and Delimitations

However, the researchers only have limited time in conducting this

reliability of the constructs and in determining the challenges potency in-depth

Significance of the Study

banking. E-banking is considered to have a substantial impact on banks’

determine the performance of banks mainly in terms of profitability. It also discusses

the effect of customers’ literacy on provision of services from banks’ perspective. It

customers is not regarded as a major impediment in provision of their products and

and to retain their customers. The profitability of banks has augmented in

transitioning to e-banking medium.

According to Kamakodi (2008) financial sector is the spinal cord of sovereign

economy of any country. India is no exception. The technology adaptation in banking

banks towards computerisation as a mechanisation of operations. Technology was

pool, operational efficiency, customer management, distribution and reach, product

these developments in the areas of housekeeping and decision-making will improve

In recognition of the need to introduce greater competition with a view to achieving

developed countries. New Private Sector Banks (NPSBs) used technology as a

and OPBs lost.

According to Gupta (2008) Internet banking has attracted the attention of

banks, securities trading firms, brokerage houses, insurance companies, regulators

significant growth in electronic commerce, it is obvious that electronic (Internet)

Internet banking on cost savings, revenue growth and increased customer

satisfaction on Industry is tremendous and can be a potential tool for building a

regulators and government agencies. Interestingly, reliable and systematic