Valuation of the Quality Attributes of Online Banking Services by Small and Medium Enterprises Engaged in International Trade

Abstract

This study investigates the important attributes of online banking system for Small and Medium Enterprises (SMEs) and their willingness to pay for each attribute. Zero travel and waiting time, high security, and 24/7 accessibility are the key attributes for this service. The results show that SMEs engaged in international trade value online banking services significantly more than the others. Domestically focused firms value high-quality service at about $163 a month, while import-focused businesses value such a service at approximately US$646 per month. Export-intensive SMEs value high-quality online services 14% further, for an average of $736 per month.