Abstract
This study identifies underlying behavioral drivers and impediments of adopting internet banking. Primary data was collected using questionnaire survey from 123 sample clients of three selected branches of Commercial Bank of Ethiopia. Behavioral aspects of clients attributable to the adoption of internet banking were solicited and subjected to binary logistic regression analysis. The findings of the study showed that perceived usefulness, perceived ease of use, trust, attitude, perceived cost and infrastructure factor significantly determine internet banking adoption with the last two determining negatively. Finally, banks are suggested to build up behaviors of clients towards perceiving internet banking as less risky and least costly technology. Key words: Internet banking, client behavior, perceived usefulness, perceived ease of use, perceived cost, perceived risk, attitude, trust.
Highlights
Banking has always been a highly sensitive activity that relies heavily on information technology to acquire process, and deliver the information to all relevant users
Education level of clients shows significant difference between adopters and non-adopters implying that education factor is positively associated with adoption of internet banking services (Table 3)
Perception on usefulness of internet banking, infrastructure factor and trustworthiness to internet banking services was found to be positively and significantly related to adoption of internet banking at 5% probability level, except developing positive attitude which did at 1% probability level and perceived ease of use at 10% significant level
Summary
Banking has always been a highly sensitive activity that relies heavily on information technology to acquire process, and deliver the information to all relevant users. Information technology is critical in processing information, it provides a way for banks to differentiate their products and services (Sara, 2008). Internet banking has made financial transactions easier for the participants and introduced a wide range of financial products and services. It has changed the operations of many businesses, and has become a powerful channel for business marketing and communication (Munyoki and Ngigi, 2012). People who wanted to obtain mortgage loans or personal loans have to go to the bank in person. Today, they can get many services from their home
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