3.1 Understanding E-banking as Innovative Banking Services
Webster (1990, 209) defines innovation as a creative idea that has been made to work. Moreover, an innovation can be a product, a process, a method or a system that facilitates the users. Innovation is more than an idea and it must be converted from idea to action. Barras (1986 and
1990) explains innovation in banking sectors had become increasingly of technological involvement. From 1970s to the early 1980s, process innovation became technical with
product innovations such as self-service systems (Sundbo, 1991). Fincham et al. (1995) also demonstrate IT development in the financial services sector, becoming significantly
important and a part of the firm’s strategy. Voss et al. (1992) discuss that service innovation are rapidly implemented and copied. Hence, having a continuous innovative process
depends on the ability of the firms.