The Adoption of E-banking Systems in The Middle East and Jordan

Introduction

The adoption of banking system in the twenty first century has evolved a great deal since the introduction of banks in the fifteenth century in ancient Rome. From this, we have seen how money lending and changing has become easy and convenient for people all over the world with the adoption of e-banking systems. To understand e-banking we need to acquaint ourselves with the concept of e-marketing. It is according to Masoud (2017) who elaborates on e-marketing as a global virtual network-like platform that consist of services that can be done from any particular location with only the assistance of a computer or a mobile phone. It is a platform that allows buyers and sellers to advertise and interact without the burden of being in the same geographical location.

In banks, it has become convenient since you do not have to visit the banks to facilitate transactions. E-marketing is a service that has been adopted by many people from all over the world and it has been a source of influence to banks adopting this ideal method. Basing the literature of a specific location, for instance, The Middle Eastern Region, a scope on Jordan banking system would be most appropriate.

From Abbad’s (2013) perspective, the adoption of e-banking systems by banks in Jordan has been a trend that is not fully embraced by the Jordanians. This is because of the notion and believe that the pre-existing traditional banking system which involves interactions between the customer and the teller is more efficient. However, despite this misconception, El-Qirem (2013) concludes that e-banking has been doing wonders in the banks in terms of efficiency, speed and reliability which goes a long way in promoting the services offered to its customers.

In recent years, information technology was not so reliable especially in banks due to the complexity and the slow operational nature of the systems which also proved hard to operate therefore requiring extensive training for the staff which was time consuming and expensive. Previous studies especially one done by Bazazo (2017), states that it is due to the existence of these problems that more innovated systems have been adopted to try and bridge the demand gap of services that banks are offering. Some of the innovations include the visa cards where one can withdraw funds from an ATM easily and faster.

There is also mobile banking where the customer can deposit and withdraw funds from their bank accounts without having to be physically there. The other innovation is the ability to send and receive funds in form of payments through the use of a mobile server. These innovations have been a great deal in steering not only services being offered by the bank but also the economy of the country considering Jordan is a developing country in the Middle East.

Alzubi’s article (2015) argues that the application of e-banking services by banks as well as customers in Jordan has come with several benefits which incorporates success and convenience to the individual and the bank. For the banks, the application combines the aspect of easing congestion in the banks and convenience to the customers which is one of the challenges customers have been facing for decades to a point some opt to open bank accounts with banks that have less traffic to avoid the cues. Therefore, it has been a great development to have the aspects of e-banking adopted by the Jordanian banks which has not only increased the banks’ profits but also promoted the name of the banks.

The ease to cash in and out without having to go to the bank is a great innovation technologically that is improving the nature of services unlike what has been happening in recent years. If the banks can fully adopt the use of these systems, they would not only offer the best of services but also initiate a revolution that will change the world to the better. It is according to Rana (2016) who states that as much as the banks are willing to evolve and completely turn all its services to an online platform. However, some customers might be reluctant in chipping in and adopting to the new ideas because of the notions they may have or heard regarding the application of these services especially among the older generation who are used to physical banking. For instance, the charging of an extra fee while depositing and withdrawing might be a factor that may distance them from adopting it.

Also, the tension of relaying all their information to virtual platform might be a reason for not complying with the systems. These two factors among others may affect the practice of this model of service. Therefore, the best strategy to be adopted to encourage and motivate people to apply these method is to help them understand that the benefits to e-marketing in the Jordanian banking surpasses the disadvantages which are not as complex as they may seem.

Background of e-marketing

An interpose by Strauss (2016) states that, to understand where e-marketing is coming from we need to familiarize ourselves with marketing as a general aspect in terms of buying, selling, promoting and advertising. In recent years before the occurrence of online marketing, people used to move from one place to another with the intention of purchasing what they want.

Also, the retailers adopted strategies that have helped in promoting their businesses so that they would attract customers to their stores. Promotions consisted of advertising which could be done through print media or even through the word of mouth though it was not as efficient. Due to the inefficiency in these methods of marketing new strategies of advertisements were adopted which involved the use of digital media such as television and radios and this yielded a lot of success to the businesses which advertised with these platforms. Banks that have adopted online systems have raised awareness through advertising so as to attract customers from other banks that have not adopted to the system.

Ruben (2016) says that the invasion of internet meant a complete revolution of the marketing business where some retailers thought that if they would use the internet to advertise their products and services it would increase their chances of selling more products and also increasing their profits. The use of the internet shows how e-marketing came into existence and how banks worldwide have taking advantage of the situation to improve the services they offer to their clients.

According to Simmons (2016) in online marketing, there are several factors that enable businesses as well as banks to continue providing quality services to the customers. This is through the feedback that they get through comments and replies, searching and adopting new market trends that will meet the demand of the people and also the platforms used in advertising. The platforms used are very important as they determine the type of customers the business is targeting and also the number it can comfortably serve without challenges. For instance, if a clothing line is advertising on Instagram, it means it is targeting the younger generation more than the older one and hence the business expects to reach out more to them due to their high numbers. E-marketing can consist of direct response marketing as well as indirect response marketing.

In contrast to Chernatony (2015) direct response marketing is where the bank or the retailer is on a one on one line of feedback with a customer which features either a live chat or texting. The importance of these models is that the consumer is able to clarify what kind of services she wants from the seller and hence the services provided are usually perceived to be of good quality.

On the other hand, Fosso (2015), concludes that indirect response method is where the consumer leaves a response for the retailer to find later and it is usually not effective due to the lack of consistency in the conversation which may be biased or yield low profits to the retailer. Banks that have been using e-marketing usually make sure there is a direct connection between the customer and the bank either through calls or messaging. For instance, a customer who wants to process a loan from a bank may opt to contact the bank for more information before the visit and if there is no response they might move to another bank and this means loss to the bank. Therefore, a consistent connection is important for this process.

The background or e-marketing had been traced from the traditional methods of marketing only that they have been innovated and improved so as to suit all customers and also to keep up to date with the technology as illustrated by Ishak (2018). Without online marketing, the services provided by banks would be poor and unreliable and this would also record consistent losses in revenue for the banks and the country.

E-marketing and E-banking in the Middle East and Jordan

It is from previous studies in the field of e-marketing that Man (2018) interjects that online marketing and online banking are considered one of the best marketing mediums due to their effectiveness and simplicity of how they function. E-marketing in the Middle East has come up with methodologies and tools used in promoting products and services of banks online which is an e-marketing strategy.

E-marketing is a more convenient method as it helps the bank to be able to keep the records of its progress. More and more banks everyday are investing in e-marketing methods since it is the most diverse way of reaching out to more customers locally and globally. Since the invention of the internet, online marketing in the Middle East has impacted greatly on the banking industry technologically, politically and economically as confirmed by Sharpe (2016).

For example, since the invention of the ATM method of banking in the Middle East and in the Jordan, there has been a significant growth in technology and economy of the geographical area. It has also brought a difference on how banks are operated and managed. In Jordan, regular bank workers have reduced in number and employed more workers especially information technology practitioners to make sure online marketing is efficient and available since it runs for 24 hours to a point that a customer can access the bank menu from the comfort of their homes or offices.

In the Middle East content marketing has been developed in e-marketing where they provide the means to learn how to create, access and control their accounts. An online interface gives the customer freedom over their finances since many customers regularly view their current balance, withdrawals and deposits including other important information. It was reported in Weshah (2018) literature that e-marketing through e-banking has brought a relief to time constraints since banking hours have been extended as you can bank anytime.

In Jordanian banks, online banking runs on a 24-hour basis since customers receive services any time. This also helps in attracting more customers since one does not have to interrupt their schedule to rush to the bank before it closes. With the onset of computerization, it has brought alternative delivery channels. Strategies to improve e-banking among Jordan banks According to Alwan (2016), the e-marketing adopts a three model strategy that will improve online banking systems among the Jordan banks. That is strategic analysis, strategic objectives and strategic implementations.

With these strategies there are elements that assist to boost the nature of a business based on the type of services provided. In strategic analysis, the banks need to focus on both the macro and the micro environment which is important in examine the demands of the customers and their changing needs as well as their actions. The strategy also enables banks are able to keep a watchful eye on their competitors by applying efficient business models that will promote the banks name and hence promoting a healthy competition.

Application of the strategic objective is quite important as it assists the banks in setting a clear vision on whether online objectives will improve the profits and the services offered by the bank. If the objects are not set according the services provided, then the banks will not reach the set targets in terms of profits and the flow of customers. It has also been evident from Allan (2017) studies that if objectives set are in favor of a bank, there are chances that it will attract customers from other banks due to the nature of the services provided. This strategy set on objectives also enables the banks to keep track of their progress and what they need to do to improve of services provided especially in online marketing.

A study conducted by Al-Bakri (2015) formulates that implementing the strategies also happens to be a key factor in improving e-banking among Jordan banks. This will take place when the bank devises and executes tactics that will aim at achieving strategic goals. For example, relaunching their website afresh that will feature new appearances and optimizations which are easy and friendly to the customers.

Implementation is the factor that assists to succeed set objectives and once they are set the banks needs to work towards execution for future success. The three strategies; analysis, objectives and implementation as stated from the AbuTaqa’s article (2017) show what banks should do if their e-marketing services are not up to the current market trends. The importance of strategies as seen in other businesses is that they assistance a business to steer towards a set target as well as the progress towards it.

Conclusion

Al -Zoubi (2017) argues that Jordan being a country in the Middle Eastern region may encounter challenges that may affect traditional banking system due to conflicts and tension in the region. Due to these challenges, the existence of an efficient e-marketing platform will assist the customers to move less do accomplish their banks business. From the past, marketing in the Middle East and specifically Jordan has been initiated through traditional methods of banking. Not only in banks, other businesses thrived well from their physical marketing and advertising until the era of internet connection which has proved to be even efficient than the traditional methods like the word of mouth.

Salamah (2017) states that e-marketing is totally the best platform a bank van use to promote its products and services and due to these reason, some banks in Jordan have a great history with e-banking from the customers they have attracted from it. As much as some customers have not fully accepted the new era in information communication and technology which is a challenge to the bank, they are still improving. Considering the change in time through technology, the customers will be compelled to adopted the new methods of e-banking.