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Consumers’ Current State Preferences for Internet Banking Services: The Case of the Kurdistan Region of Iraq's Private Banks

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Empirical Studies of an Internet and Service Based Economy

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Abstract

Technological changes have affected the performance of banking services in the modern World. Banks therefore ought to develop and bring in new policies and strategies that are eager to promote the economy in the information world. The implementation of the e-banking system is therefore considered critical and important towards the attainment of this goal. Kurdistan Region of Iraq (KRI) tries to adopt the e-banking service and implement it in financial institutions. However, KRI has encountered numerous issues driven by various reasons, most importantly, the political situation and the tolerance by ISIS as is seen in some develo** countries. This chapter aims to determine the factors that affect the use of internet banking in KRI. Conjoint Analysis (CA), which focuses on Discrete Choice Modeling (DCM), with rank-ordered logit model is used. Several characteristics such as internet banking language, access to internet banking, Limit per transaction (LPT), Transaction limit per day (TLP) and transaction cost are used for the analysis. The results show that elements that influence the use of technology in banking are the language of the server to be in all three languages (Kurdish, Arabic and English), followed by OTP with password specification to access internet banking, and the limitation per transaction to be more than $5,000. As such, bank officials should consider these factors' penetration of internet banking.

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Author information

Authors and Affiliations

  1. Accounts Payable Analyst, TAQA Iraq Oil and Gas Company, Erbil, Iraq

    Hamsa Awni Lazar

Authors
  1. Hamsa Awni Lazar
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Corresponding author

Correspondence to Hamsa Awni Lazar .

Editor information

Editors and Affiliations

  1. Technology Management, Economics and Policy program, Seoul National University, Seoul, Korea (Republic of)

    Nabaz T. Khayyat

  2. Economics and Finance, University of Kurdistan Hewler, Erbil, Iraq

    Goran M. Muhamad

Appendices

Appendix 1: Descriptive Statistics

See Tables 9.13 and 9.14.

Table 9.13 Summary statistics of variable used
Full size table
Table 9.14 Correlation between the variables
Full size table

Appendix 2: Questionnaires (Internet Banking)

Part One: Personal Information

  1. 1.

    What is your gender?

    1. a.

      [] Male

    2. b.

      [] Female

  2. 2.

    How old are you?

    1. a.

      [] 18 to 29

    2. b.

      [] 30 to 39

    3. c.

      [] 40 to 49

    4. d.

      [] 50 to 59

    5. e.

      [] 60 or older

  3. 3.

    What education level do you have?

    1. a.

      [] Primary school or less

    2. b.

      [] Secondary

    3. c.

      [] Diploma

    4. d.

      [] Bachelor

    5. e.

      [] Masters

    6. f.

      [] Doctorate

  4. 4.

    What is your occupation?

    1. a.

      [] Unemployed… (Go to question number 7)

    2. b.

      [] Civil Servant

    3. c.

      [] Business

    4. d.

      [] Academic

    5. e.

      [] Others

  5. 5.

    How many years is your working/business experience?

    1. a.

      [] 0 to 5 years

    2. b.

      [] 6 to 10 years

    3. c.

      [] More than 10 years

  6. 6.

    How much is your monthly income (USD)?

    1. a.

      [] 0 to 500

    2. b.

      [] 500 to 1,000

    3. c.

      [] 1,000 to 1,500

    4. d.

      [] 1,500 to 2,000

    5. e.

      [] More than 2,000

  7. 7.

    What is your marital status?

    1. a.

      [] Single

    2. b.

      [] Married

    3. c.

      [] Others

  8. 8.

    How many members are in your family?

    1. a.

      [] Small (1 to 5)

    2. b.

      [] Large (more than 6)

  9. 9.

    What is your major private bank?

    1. a.

      [] Kurdistan International Bank (KIB)

    2. b.

      [] Byblos Bank

    3. c.

      [] Intercontinental Bank of Lebanon (IBL Bank)

    4. d.

      [] Bank Audi

    5. e.

      [] BBAC Bank

    6. f.

      [] IS’ Bank

    7. g.

      [] Standard Charter

    8. h.

      [] Regional Trade Bank (RT)

    9. i.

      [] Cihan Bank

    10. j.

      [] Ashur bank

  10. 10.

    Do you have a bank card?

    1. a.

      [] Yes

    2. b.

      [] No…(Go to question number 12)

  11. 11.

    What is the main purpose of using your bank card?

    1. a.

      [] Hotels/tickets

    2. b.

      [] Online shop**

    3. c.

      [] Only Using abroad

    4. d.

      [] All above

  12. 12.

    What is the frequency of your transaction with your bank?

    1. a.

      [ ________/week]

    2. b.

      [ ________/month]

    3. c.

      [] No transaction

  13. 13.

    Internet Familiarity?

    1. a.

      [] Not at all

    2. b.

      [] Fairly

    3. c.

      [] Averagely

    4. d.

      [] Well

    5. e.

      [] Very well

Part Two: Conjoint Survey

Please tick the most preferred package in profile (A)-shall I change tick to rank?

Profile (A)

Attribute

Level 1

Level 2

Level 3

Language

Kurdish/English

Arabic/English

All

Access to your internet banking

OTP with password

OTP with password

Only password

Limit per transaction

$1000-$5000

Less than $1000

More than $5000

Transaction limit per day

$5,0000-$10,000

More than $10,000

More than $10,000

Transaction cost

Fixed

Fixed

Proportional

( )

( )

( )

Please tick the most preferred package in profile (B)

Profile (C)

Attribute

Level 1

Level 2

Level 3

Language

All

Arabic/English

Kurdish/English

Access to your internet banking

Only password

USB with password

Only password

Limit per transaction

Less than 1000

1000–5000

1000–5000

Transaction limit per day

Up to 5000

5000–10,000

More than 10,000

Transaction cost

Fixed

Proportional

Proportional

 

( )

( )

( )

Please tick the most preferred package in profile (C)

Profile (E)

Attribute

Level 1

Level 2

Level 3

Language

Kurdish/English

All

Arabic/English

Access to your internet banking

USB with password

OTP with password

Only password

Limit per transaction

Less than 1000

More than 5000

1000–5000

Transaction limit per day

More than 10,000

5000–10,000

Up to 5000

Transaction cost

Proportional

Proportional

Proportional

 

( )

( )

( )

• Now please mention the best option, according to your preference, from among the ones you have indicated as the most preferred in each set (A, B and C)

If you think there are other attributes than what we used in this survey have to be considered, please specify?_________________________________________

Part Three: External Factors:

  1. 1.

    What type of internet banking service do you currently use? More than one option is allowed

    1. a.

      [] Credit/debit card for a specific bank

    2. b.

      [] Only banking access

    3. c.

      [] Cards for online shop**

    4. d.

      [] I don’t use

  2. 2.

    How long have you used internet banking?

    1. a.

      [] Three months

    2. b.

      [] Six months

    3. c.

      [] One year

    4. d.

      [] Two years

    5. e.

      [] Other, Specify______________

  3. 3.

    How often do you find internet banking not opening?

    1. a.

      [] Sometimes

    2. b.

      [] Many times

    3. c.

      [] Never

  4. 4.

    How satisfied are you with the bank's service?

    1. a.

      [] Very satisfied

    2. b.

      [] Satisfied

    3. c.

      [] Average

    4. d.

      [] Unsatisfied

    5. e.

      [] Very unsatisfied

  5. 5.

    Which banking services give you the most satisfaction? Choose up to 3 choices

    1. a.

      [] Mode of transaction

    2. b.

      [] Comprehensiveness of online services

    3. c.

      [] Banks name and reputation

    4. d.

      [] Multiple Branches

    5. e.

      [] Waiting time

    6. f.

      [] Customer care

    7. g.

      [] Information security

    8. h.

      [] Transaction security

    9. i.

      [] Transaction costs

    10. j.

      [] Queue management

    11. k.

      [] Others, Specify______________

  6. 6.

    If you have never used internet banking, when do you intend to use it?

    1. a.

      [] within 6 months

    2. b.

      [] in 1 year

    3. c.

      [] 1 year later

    4. d.

      [] No plan to use

  7. 7.

    The reason to use the internet banking service (please tick as many as you use/would use it for?

    1. a.

      [] Time efficient

    2. b.

      [] Cost efficient

    3. c.

      [] Privacy

    4. d.

      [] Security

    5. e.

      [] All above

  8. 8.

    In your opinion do you think internet banking project in Kurdistan will be successful?

    1. a.

      [] Yes it will

    2. b.

      [] It will but with partial failure

    3. c.

      [] No, it will fail

    4. d.

      [] I don’t know

Thank you very much for your participation, please note the information which you have provided surely will not be used for any other purposes than for the objectives mentioned at the beginning of this survey.

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Lazar, H.A. (2023). Consumers’ Current State Preferences for Internet Banking Services: The Case of the Kurdistan Region of Iraq's Private Banks. In: Khayyat, N.T., Muhamad, G.M. (eds) Empirical Studies of an Internet and Service Based Economy. Perspectives on Development in the Middle East and North Africa (MENA) Region. Springer, Singapore. https://doi.org/10.1007/978-981-99-3389-1_9

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