The research proposal

I planned this topic for researching in terms of three factors. First of all, internet banking is an innovation in financial field nowadays; second, the scale of internet banking has been enlarging rapidly all over the world; third, internet banking increasingly closes to people's lives. The principal literature sources from some main banks in China which have been developing this operation such as China Merchants Bank, Bank of China, and China Construction Bank.

According to OCC, internet banking is defined as pointing some systems that through utilizing these systems, the bank customers pass the PC or other intelligent devices to enter the bank account and get the general bank products and service information.

Some other banks defined it as a real- time solution that allows you to access your accounts 24 hours a day, 7 days a week; you may check your balances and transaction history for such accounts as checking, savings, money market and even mortgage.

Compared with traditional bank, internet bank has further predominant characteristic. In the first place, it causes financial services standardisedly, individualized and synthetically; in the second place, it impel the deep change in the financial competition pattern; furthermore, it makes branch of industry more interdependency; last of all, internet bank benefits to bring into play its merits of information, and improve the transparency of the information. As regards operation area of internet bank, there are three primary areas: the services of traditional commercial bank; pay-online; new operation field.

The domestic banks for developing internet banking are optimistic. In April, 1997, China Merchants Bank was the first one for developing this operation.

Following it, other banks have it subsequently. As a result, more than 200 branches of 20 banks have this operation nowadays. At the same time, the number of existing and potential consumers have a dramatic increase. According to a survey from AC Nielsen Company, from 2000 to 2005, the number of existing consumers will increase from 900 thousand to 140 million. While the number of frequence of people surfing on net reached 112 million and potential percentage of consumers will reach 23%, therefore, the bank can acquire 25 million and 760

thousand potential consumers in the future. It is a great prospect for banks which develop internet banking. However, internet banking also exists some problems that can come from consumers' feedback. And the feedback comes from two parts of consumers that are existing and potential consumers. In conclusion, there are four central problems: legal system lags behind; safe problems; scanty group of consumers; poor interconnecting. ?oResearch questions and objectives ?€How can internet banking develop further security and efficiency in China?

?€To establish some appropriate solution for wiping out existing problems and promoting its development. ?oMethodology 1. Induct a review of the literatures on actuals of internet banking and development direction of internet banking so that this research can represent reader where I intend to draw. 2. Take advantage of some banks' websites to acquire useful information about internet banking. Because these websites belong to main banks of China such as Bank of China, China Merchants Bank and China Construction Bank. More important, these information are trusty and typic.

3. Throughout financial theory in the research appropriately. Because internet banking is a part of finance to some extent, accordingly, they are interrelated. 4. Survey can greatly expatiate the situation of internet banking. Specially, both AC Nielsen Company and FortuneAge company are famous consulting company. They can provide for accurate data to analyse. In addition, data analysis will use the SPSS software. 5. Use comparative analysis to compare with characteristic of development of internet banking in other countries, particularly in developed country.

Because the level of economic development in these countries is very outstanding. 6. Refer to some knowledge of Management Information System. Internet banking is also based on relative intellectualized devices. Therefore, the part is useful. ?oTimescale (April to July, 2003) Activity April May June July Week number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Read literature ? i Draft literature review ? i Review research methods ? i Review research strategy ? i Collection of data ? i Collection of bank websites ? i Final selection of material ?i Analysis of data ?i

Completion of first draft ?i Final writing ?i ?oResources I can perform the research analysis through using computer hardware and software in an appropriate time. ?oReferences ?€(online) ,Available:http://www. FortuneAge. com? "2003,March? " ?€He Zerong & Zou Hongyuan, 1995, The theory of international finance, Southweatern University of Economy and Finance Press, Chengdu. ?€(online) ,Available:http://www. ccb. com. cn? "2003,April? " ?€(online) ,Available:http://www. icbc. com. cn? "2003,March? " ?€(online) ,Available:http://www. bank-of-China. com? "2003,March? "