The Impact of Information Security Policies (Thesis Proposal Sample)

The Impact of Information Security Policies on Customer Trust in the Open Banking Era
Chapter 2: Literature Review 
2.1 Introduction
The purpose of this chapter is to review the studies that other authors have done on the impact of information security policies on customer trust in online and open banking models. There is a growing interest in open and online banking as the world is increasingly becoming a global village where people conduct monetary transactions instantaneously. Since this is a critical sector involving finances yet growing so fast, it is only fair for authors to focus on ways to make the industry trustworthy through innovations. This chapter begins with the background information on information security and its impact on user trust. Theoretical and empirical reviews are done in this chapter to inform the conceptual framework adaptable to this current study. The chapter begins with a review of theories that underpin the concept of information security. The chapter then presents the empirical review of the social theory, distributed cognition theory, and socio-technical systems theory. The review also covers the role of factors influencing information security perception on customers. Finally, the research gap is identified, and the study discusses the conceptual framework adopted. 
2.2 Background Information of the Literature 
The study focuses on the customer perspective related to digital banking information security in an era of open banking. Several academic pieces of literature were consulted to ground the study within a theoretical context. Napoletano (2021) elaborates that digital banking can be used online or offline and combines online and mobile banking services, which provides both benefits and disadvantages, explicitly mentioning concerns about the safety and security of online and digital banking. It, however, did not state how customers should ascertain how digital banks use or protect their data. How safe is customer information in an open banking system during an era where everything is becoming digitalized? Many things can go wrong in open banking, so data protection measures are essential. 
Traditionally, the banking relationship between the customer and the bank has always been considered closed and reliant on trust. However, the emergence of open banking and the growth of digital channels, digital financial ecosystems, financial technology (FinTech), and other third-party-based interfaces will have the opportunity to overtake banks (Aghdam et al., 2022) and challenge the closed model. Open banking is a relatively new concept, so, naturally, there are concerns about data privacy. Giving customers control over their banking data can revolutionize the experience of banking, but it also provides access to this information by third parties. Consent should always be given before a third party can access an individual's data.
Similarly, Winch (2019) states that financial data privacy should be constitutional and assumes customers have ownership rights to their banking data and thus should gain ownership benefits. Mansfield-Devine (2016) notes that since open banking is customer-controlled, it is considered a method that protects and secures privacy. The study indicates that international developments in the UK have supported predictions about the anticipated advantages open banking can bring customers. According to Arner et al. (2021), one of the most significant challenges of open banking involves detecting unusual patterns during transaction monitoring to note illegal activities such as money laundering. Implementing rigorous customer identification steps is one way to avert money laundering and financial crime.
According to Schich (2020), banks play an essential role in providing innovative products that link demographics such as age, gender, income, culture, and social factors. Open banking can play a significant role when establishing these links, and financial service providers ensure personal and sensitive consumer information privacy. However, the article does not state if open banking can be detrimental if data privacy is ensured.