An Analysis of Factors Influencing the Adoption of Internet Banking in Mauritius

Abstract

The advent of ICT has transformed industries around the world. The benefits resulting in better quality service, speedier services, cost reduction, business process re-engineering, more valued employments, among others are well-documented. However, adoption of ICT comes with its own risks and criticisms like potential loss of privacy, security of data, issues around trust, and so on. Notwithstanding the potential downsides of ICT adoption, these technologies are the realities of the present and certainly of the future. The question is no longer whether or not to adopt ICT but on how to deploy it for the survival and growth, for profits and profitability, for competitiveness. The Banking and Financial Services Sector has been one of the sectors whereby ICT has been most adopted. The option not to adopt ICT in the banking and financial services sector would in fact tantamount to death of the organization. Internet Banking (IB) has gained increasing popularity around the world as online services are perceived as being more attractive than those provided by traditional banking channels. This paper briefly reviews the literature in the area of internet banking and the issues surrounding its adoption and non-adoption. It goes on to tests hypotheses to scientifically prove the factors enhancing the adoption or non-adoption of Internet Banking by citizens in Mauritius. Banks may be inspired by the findings to shape their future policies in increasing Internet Banking penetration.