Document Type



This paper reports an investigation into the state-of-the-art practices of Internet banking in Taiwan. Emphasis is focused on the adoption of security technology. Three kinds of security utilities—SSL, SET, and Non-SET—are compared in terms of risks and supported functions. The author also analyzes factors that influence the development of Internet banking.

The Ministry of Finance of the Taiwanese government has adopted a policy that fosters the development of Internet banking. However, understanding security technologies demands in-depth expert knowledge, and goes beyond the capacity of general citizens. The authors suggest that the first priority is given to the authority’s promulgation of laws and guidelines. Second, the banking industry needs to integrate the security mechanisms of Internet banking services with the existing environment. Finally, a risk allotment policy would help to remove fear and doubt from customer’s minds.