THE CHALLENGES IN ADAPTING E-BANKING SERVICES

AMONG SENIOR CITIZEN USERS

OF TAGBILARAN CITY

In Partial Fulfillment of the Requirements in BAR 199 (a) of the

College of Business and Accountancy
Holy Name University
Tagbilaran City

by

Michelle Corrine Aparici

Joll Edmar Deligos
Glenn Ryan Golosinda
Famela Jean Hibaya
Jasmin Mae Priego

May 2024

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 APPROVAL SHEET

This thesis entitled “THE CHALLENGES IN ADAPTING E-BANKING

SERVICES AMONG QUALIFIED SENIOR CITIZEN USERS OF TAGBILARAN
CITY” prepared and submitted by Michelle Corrine Aparici, Joll Edmar Deligos,
Glenn Ryan Golosinda, Famela Jean Hibaya, and Jasmin Mae Priego in partial
fulfillment of this requirements for the degree of Bachelor of Science in Business
Administration Major in Financial Management has been examined and hereby
recommended for approval and acceptance for proposal examination.

PROF. CECILE EVEMARY S. BATINGAL, CPA

Content/ Teacher Adviser
Faculty, College of Business and Accountancy

PANEL OF EXAMINERS

Approved by the Committee on Oral Examination with a grade of _______.

__________________________________

__________________________ _________________________

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 TABLE OF CONTENTS

Title Page
Approval Sheet
Table of Contents
CHAPTER
I THE PROBLEM AND ITS SCOPE
Rationale
Theoretical Background
THE PROBLEM
Statement of the the Problem
Significance of the Study
Scope and Limitations
RESEARCH METHODOLOGY
Research Environment
Research Participants

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 CHAPTER I
THE PROBLEM AND ITS SCOPE
INTRODUCTION

Rationale
In the present world technology plays a major role in society. With the
rapid growth of the technology, banks get special help from the internet to do
their day to day transactions. Internet banking or Digital banking is a banking
method where customers can do their transactions via the internet without
coming to the bank premises. The research’s problem area mainly revolves on
the challenges faced by senior citizens in using e-banking services in Tagbilaran
City.

One essential step toward making e-banking services accessible to older

adults is to deeply understand how they interact with such technologies and the
barriers they may face when using such e-banking services. In this work, we
approach this problem by studying older adults’ practices and challenges with
physical and digital banking platforms to provide a holistic view of their banking
experiences.

As provided by (James Ritter, 2002). One of the largest obstacles for

seniors trying to access internet banking is their lack of familiarity with
contemporary technologies. Seniors may be less familiar with computers,
phones, or other digital devices. Moreover, Lack of Trust in Technology is one of
the problems why many seniors in the Philippines would not use online banking
technologies. Several barriers still prevent seniors from using digital banking.
Due to their propensity to fall victim to con artists and other criminal elements
quickly, elderly Filipinos are often at risk of fraud. (Knowledge Bank, 2022).

This paper aims to identify the main factors that are challenges faced by
elders in digital banking and causing limited adoption of digital banking services

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for elderly users, we consider the case of use of digital banking by people aged
60 and over in Tagbilaran City. Population aging is an overall marvel. Right now,
the more seasoned segment of the population lives surrounded by innovation,
web and mobile based, the majority of which is, be that as it may, not adjusted to
their necessities. However, this expansion worldwide in quantities of the aged
implies that the requirement for on the web and versatile innovation
administrations will just increment. As the years go by, it is foreseen that there
will be more than a billion more seasoned grown-ups, making it basic that sites
be intended for simple use by the elderly.

THEORETICAL BACKGROUND

Mobile banking is an emerging application of mobile commerce that could

become an additional revenue source to both banks and telecom service
providers. It is a form of service convergence enabled by innovative
technologies” (Kim et al. 2009). Also, it is a cost effective service which allows
users to break free of the constraints of time, place, and queues (Al-Ajam and
MdNor, 2015). Furthermore, electronic banking makes it simpler for customers to
compare banks’ services and products, can boost bank competition, and enables
banks to enter new markets and thereby increase their geographic reach.
However, this technological boom also has a downside in that electronic banking
is not only susceptible to, but may exacerbate some of the same risks,
particularly governance, legal, operational, and reputational risks inherent in
traditional banking. Saleh and Andrea (2002).

According to Nsouli and Schaechter, (2002), Internet banking is becoming

more popular. Banks are increasingly running websites where clients can do a
variety of activities in addition to making inquiries about account balances,
interest rates, and currency rates. Additionally, E-banking is examined by
Angelakopoulos and Mihiotis (2011) According to research findings, banks need

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to offer e-banking services in order to stay competitive. However, some
prospective consumers struggle with security and privacy issues since they are
unfamiliar with technologically sophisticated gadgets.

According to the Knowledge Bank (2022), they believe that technology is

complex, and many seniors are less technically inclined and less willing to
experiment with new technology than younger people. Even though e-banking
has many benefits for elders, several barriers still prevent seniors from using
digital banking. Due to their propensity to fall victim to con artists and other
criminal elements quickly, elderly Filipinos are often at risk of fraud. By contacting
or sending text messages to elders asking for personal information, and they will
give it quickly without hesitation, scammers prey on their lack of familiarity with
digital services.

In addition to the Knowledge Bank, 2022 Lack of Trust in Technology is

one of the problems why many seniors in the Philippines would not use online
banking technologies. Older folks prefer to trust people more than robots and
technologies regarding their wealth. Furthermore, Senior Citizens need more
confidence and technical expertise because platforms like social networking
applications have no downsides. They do not have to worry about the adverse
outcomes when they click buttons they do not know. Many people are reluctant
to take a chance out of concern that they might make a mistake and lose their
carefully saved money. Instructions for online banking should be more expertly
written and more straightforward for those with little experience with digital
technology. When they first log into their accounts, many seniors feel bewildered.

One of the largest obstacles for seniors trying to access internet banking
is their lack of familiarity with contemporary technologies. Seniors may be less
familiar with computers, phones, or other digital devices than younger family
members for whom they are an integral part of modern life. In order to use their
bank's digital services, they would need access to one of these devices.(James

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Ritter, 2002). In the same way, the moderation effects of age, gender, experience
and voluntariness of use define the strength of predictors on intention. Age
moderates the effect of all four predictors. Gender affects the relationships
between effort expectancy, performance expectancy and social influence.
Experience moderates the strength of the relationships between effort
expectancy, social influence and facilitating conditions. Voluntariness of use has
a moderating effect only on the relationship between social influence and
behavioral intention (Venkatesh et al., 2003).

According to Kamya Pandey (2022), another important reason why

seniors have shifted their needs to the digital realm is the COVID-19 virus and
the threat it poses to them. One of the most important services that older people
require is internet banking. Let’s take a look at some of the most pressing issues
that seniors face and how banks can assist. In the same way, according to Binh
Dao Thanh (2021), commercial banks are actively engaged in digital
transformation to become digital banking in order to improve banking services
that meet the needs of customers of all ages. The content of digital banking, the
factors that influence the elderly's adoption of digital banking, and the need to
adapt digital banking products for the elderly.

In the words of Ylikoski (2006) asserts that senior folks require assistance
accepting the world of e-banking because they are not accustomed to using
technology. One of the biggest issues is a lack of knowledge and awareness.
Learning it requires time for the elderly. Since they need to get familiar with the
range of services their bank offers, the transition of senior citizens to online
services may be gradual. They are concerned that performing the chores online
may be difficult for them or unsafe.

In the statement of Jessica Berner et. al (2014) if a senior citizen lived with
someone who shared the same interest in internet technology, they would learn
more about it. However, individuals are more likely to conduct financial

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transactions and receive face-to-face financial assistance at shops. The lives of
the elderly are, nonetheless, significantly impacted by bank financial services
(Guido et al., 2020).

Definition of Key Terms

Adapting. Means changing or adjusting something or oneself to suit

different conditions, environments, or purposes (Kernerman English Multilingual
Dictionary , 2013)

E-banking Services. According to law insider , E- banking services refers

to a banking arrangement with which the customer can perform various
transactions over the internet, which is- end-to-end encrypted, it is completely
safe and secured.

Senior citizens. As amended on Republic Act 9994, commonly known as

the Expanded Senior Citizens Act of 2010. Under R.A. 9994, all Filipino residents
60 years or older are automatically entitled to benefits and privileges, as granted
by law. (Senator Sonny Angara, 2010). This also extends to elderly dual citizens
who have resided in the Philippines for at least six months.

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 THE PROBLEM

Statement of the Problem

This study aims to determine the challenges in adapting e-banking

services among senior citizen users in selected barangay of Tagbilaran City.
More specifically, this study aims to provide answers to the following questions:

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

a. Age
b. Gender
c. Education
d. Frequency

2. What areas in e-banking services are the senior citizens experiencing

difficulties?
a. Lack of Familiarity
b. Lack of Trust
c. Prone to Fraud
d. Health Issues

3. How would e-banking service providers take actions to address those

challenges faced by senior citizens?

Research Objectives
1. To know the various risk factors faced by senior citizens in using e-
banking services.
2. To examine the extent awareness of the challenges in e-banking services
among senior citizens.

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 3. To comprehend the problems encountered by senior citizens while using
E-banking services (Internet Banking, Mobile Banking, ATM, etc.)
4. To provide relevant information e-banking services towards the challenges
being faced by senior citizens.

Significance of the Study

The researchers presuppose that this study will arrive with beneficial
results vital in evaluating the challenges faced by senior citizens. These are the
sectors that gain valuable information out of the findings of this study:

E-Banking service providers. This study will help the provider to know
their failings out of the services they provide. This study will also help them to
make improvements of their services to address such failings to provide better
services.

Senior Citizens. This study implied to uplift a tool guide in coping up to

the challenges they faced in making e-banking transactions. This will also give
them the knowledge and awareness of using e-banking services.

Community. This research will benefit the community to address the

same challenges in using e-banking services.

Future researchers. This study can be used as an informative guide for

future researchers who would like to enhance and widen the scope of the study
about the challenges in adopting e-banking services among senior citizens users.

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Scope and Limitations

This study will be conducted in selected barangays in Tagbilaran City and

the respondents of this study will be the senior citizens whose age ranges from
60 years old and above. The researcher also considers getting information that
are beneficials to both users and e- banking service providers.

RESEARCH METHODOLOGY

This part of the study includes the research design, research environment,
research participants, the procedures and instruments which the researchers
believe to be necessary and appropriate for the success of the study.

Research Design

This research will utilize the descriptive research method through the use
of a questionnaire as a tool in gathering relevant information. Purposive sampling
method will be applied in choosing the respondents who are to be given
questionnaires. Hence, the researchers will divide the questionnaires among
themselves to speed up distribution. After the retrieval , data will be scrutinized,
analyzed and presented in tabular form to make it more presentable.

Research participants:
The research respondents are Senior Citizens who use the e-banking
services of Tagbilaran City. We chose senior citizens as our respondents
because they face many challenges as users of e-banking services compared to
young family members.

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Research Environment:
The research respondents of this study are the selected barangays in
Tagbilaran City, Bohol. Tagbilaran City consists of fifteen barangays. As a
researcher, Tagbilaran City is more progressive compared to other towns.
Tagbilaran City is considered the center of commerce in Bohol, and it is expected
that many of the senior citizens in Tagbilaran City use e-banking services
compared to the highland towns.

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