From clicks to profits: how internet banking adoption drives Swedish bank profitability across different age groups

Over the last decade, Internet banking is making its own acceptance worldwide including both economically stable as well as in developing countries. Though an ample amount of research on Internet banking (IB) adoption is accessible in developed countries and in some developing countries, it is scant in Bangladesh. Therefore, the aim this study is to analyze the predictors that influences customers in IB adoption in Bangladesh. Incorporating two external variables, namely perceived technology security (PTS) and trust with the UTAUT2, a survey questionnaire was developed and distributed among Bangladeshi customers using online platforms. Using convenience sampling method as a nonprobability sampling technique, a total 280 responses were gathered in an online survey and analyzed following PLS-SEM strategy. This study revealed that PTS, performance expectancy, trust, effort expectancy (EE), social influence (SI), facilitating conditions (FC), price value (PV), and hedonic motivation (HM) have significant influences on IB adoption in the Bangladesh context while habit (HT) has found insignificant. Further, while we investigated the gender differences between the relationships of exogenous and endogenous constructs using PLS-MGA (multi-group-analysis), we found that trust, HT, PV, EE, and FC are significant for female whereas PTS, SI, and PE are significant for male respondents. Gender also moderates the relationships between HT and IB adoption, and, trust and IB adoption. This study contributes in the literature of IB adoption as well as offers some valuable implications for Banks in developing country to increase the IB adoption.

Small Medium Enterprises are important key player of the economy of a country. They play a vital role in the growth of the society and the investors as well as the overall economy of the country. Nowadays, the Business world has changing rapidly according to the technology changes. The one of the most famous trend is most of small medium enterprises are moving to internet banking. Because the new technologies introducing new products and services to the market. Specially the service market is updated day by day including financial institutions such as banks, Auto mobile service institutions and etc. Bank and Small medium enterprises are always blending with each other. All SME's financial transactions are handling by bank. Therefore new services always interact with the customers of bank. Internet banking allows customers to perform a wide range of banking transactions electronically via the bank's Web site. When first introduced, Internet banking was used mainly as an information presentation medium in which banks marketed their products and services on their Web sites. The purpose of this study is to identify that what are the factors influencing business customers to the adoption of internet banking. Bank provides a variety of products and services to the customer, the various services offered by the banks can be utilized by the customers only when they are aware of the services. Researcher in this research has attempted to evaluate to Internet banking by providing insights on the factors that affect Internet banking adoption. Primary data was collected by Questionnaires, 100 respondents were selected for study after initial screening, and they were all SMEs customers. According to this study researcher found that perceived benefit, attitudes, External pressures, ease of use and ICT knowledge have the positive significant effect on adoption of internet banking among SMEs. Security not much effect on the adoption of internet banking.

Background: The banking industry globally provides Internet banking to offer their customers easy access to banking services. The banks in South Africa, like their counterparts in other parts of the world, offer Internet banking to customers. However, the majority of South Africans in rural areas do not adopt and use Internet banking despite its convenience, the availability of Internet banking infrastructure, the effort of banks in promoting Internet banking awareness and Internet security.Objectives: This research investigated factors which influence the adoption and use of Internet banking in the context of South African rural areas.Method: In this study, a quantitative research approach was used. Data were collected through questionnaires and analysed using Statistical Package for Social Sciences (SPSS) tool.Results: The perceived compatibility, trialability and external variables such as awareness and security were found to have significant influence in the adoption of Internet banking in South African rural areas, whereas relative advantage was found not to be a significant factor. Security and the complexity of Internet banking were also revealed as some of the factors hampering the intention to adopt Internet banking in South African rural areas.Conclusion: The lack of awareness on Internet banking services and its benefits such as its convenience and the possibility to conduct banking transactions from any location with Internet is found to be the reason for South African rural area retail bank consumers’ reluctance to adopt Internet banking. The majority of retail bank customers in South African rural areas do not use Internet banking because of the lack of resources, such as computers with Internet access. The security of transactions conducted over the Internet is the main concern and significant element that customers consider before adopting Internet banking in South African rural areas as they perceive it as being easily exposed to fraud. As a result, this perception erodes retail bank customers’ confidence to adopt Internet banking. The majority of retail bank customers in South African rural areas will be willing to adopt Internet banking if their lifestyle, values and specific need are met. Retail bank customers in South African rural areas will adopt Internet banking if the Internet banking processes are simplified and user-friendly.

Internet banking (IB) is believed to bring a lot of banefits to customers and is provided by most of the banks in Vietnam, but the number of users is still limited. The purpose of this study is to investigate the reasons and consumption-decision structure why not many people in Vietnam is willing to use the service. The study is based on Mean Means-End Chain theory (MEC) and uses laddering interview to collect data. Data from a sample of 71 respondents are analysed by employing Association Pattern Technique (APT) and then are demonstrated on Hierarchical Value Map (HVM). The research findings show that there are 06 attributes, leading to 05 consequences, driving to Unsafety and Inconvenience as 02 crucial values which prevent customers from using IB. Some recommendations are proposed accordingly to improve IS usage. Keywords Internet banking, Means-end chain theory, soft/hard laddering interview References [1] Phương, M. (2017, December 01). 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The purpose of this study was to determine the influence of perceived risk, social norms, usefulness and trust towards the adoption of mobile banking and internet banking in Indonesia. Independent variables in this study were perceived risk, social norms, usefulness and trust. Dependent variables used were the adoption of mobile banking and internet banking. The control variables of this study were gender, age, education, profession and understanding of technology.The research used questionnaire for data collection. The respondents were active users of mobile banking services banking and internet banking. The sampling technique used was purposive sampling. This study uses regression analysis. The analytical tool used to test the hypothesis is SPSS 20.These results indicate that not all independent variables showed significant effects on the dependent variable. Perceived risk has a negative influence on the adoption of mobile banking and internet banking. Social norms and trust have a positive influence on the adoption of mobile banking and internet banking. Usefulness has no influence on the adoption of mobile banking and internet banking. The control variables of age proved to be a positive influence on the adoption of mobile banking and internet banking. However, other variables, namely gender, education, profession and understanding of the technology do not affect the adoption of mobile banking and internet banking.

The purpose of this study was to determine the influence of perceived risk, social norms, usefulness and trust towards the adoption of mobile banking and internet banking in Indonesia. Independent variables in this study were perceived risk, social norms, usefulness and trust. Dependent variables used were the adoption of mobile banking and internet banking. The control variables of this study were gender, age, education, profession and understanding of technology.The research used questionnaire for data collection. The respondents were active users of mobile banking services banking and internet banking. The sampling technique used was purposive sampling. This study uses regression analysis. The analytical tool used to test the hypothesis is SPSS 20.These results indicate that not all independent variables showed significant effects on the dependent variable. Perceived risk has a negative influence on the adoption of mobile banking and internet banking. Social norms and trust have a positive influence on the adoption of mobile banking and internet banking. Usefulness has no influence on the adoption of mobile banking and internet banking. The control variables of age proved to be a positive influence on the adoption of mobile banking and internet banking. However, other variables, namely gender, education, profession and understanding of the technology do not affect the adoption of mobile banking and internet banking.

This study examines the factors influencing adoption of internet banking in Kathmandu Valley. Internet banking is selected as the dependent variable. Similarly, trust, convenience, reliability, ease of use, security and time saving are selected as the independent variables. The primary source of data is used to assess the opinions of the respondents regarding the factors influencing adoption of internet banking in Kathmandu valley. This study is based on primary data with 123 respondents. To achieve the purpose of the study, structured questionnaire is prepared. The correlation coefficients and regression models are estimated to test the significance and importance of different factors influencing adoption of internet banking in Kathmandu Valley. The study revealed that trust has a positive impact on adoption of internet banking. It means that increase in trust leads to increase adoption of internet banking. Similarly, time saving has a positive impact on adoption of internet banking. It indicates that increment of time saving leads to increase in adoption of internet banking. Moreover, this study showed security has a positive impact on adoption of internet banking. It means that high security leads to increase in adoption of internet banking. Likewise, reliability has a positive impact on adoption of internet banking. It shows that higher the reliability, higher would be the adoption of internet banking. Similarly, ease of use has a positive impact on adoption of internet banking. It shows that increment in ease of use leads to increase in adoption of internet banking. On the other hand, convenience has a positive impact on adoption of internet banking. It means that higher the convenience, higher will be the adoption of internet banking.

Korean Abstract: 소비자금융 채널의 중심이 오프라인에서 온라인으로 이동하고 있는 현 상황을 고려할 때, 인터넷뱅킹 이용에 영향을 미치는 소비자의 특성을 실증분석을 통해 확인할 필요가 있다. 본 연구는 한국소비자원이 2017년 조사한 자료를 사용하여, 인터넷뱅킹 이용 경험 유무와 인터넷뱅킹 이용 수준에 영향을 미치는 요인을 분석하였다. 분석 결과에 의하면 첫째, 인터넷뱅킹 이용 경험이 있는 사람의 특성은 고용상태(직업 있음), 연령(-), 소득수준(+), 인터넷뱅킹에 대한 자기효능감(+), 지각된 위험수준(-)과 밀접한 관련이 있었으며, 둘째, PC 기반의 인터넷뱅킹 경험유무과 스마트폰 기반의 인터넷뱅킹 경험유무에 각각 영향을 미치는 요인을 비교해 보았을 때, PC 기반의 인터넷뱅킹 경험 가능성에 영향을 미치는 변수는 성별(남성), 연령(-), 소득수준(+), 인터넷뱅킹에 대한 자기효능감(+)과 관련이 있었으며, 스마트폰 기반의 인터넷뱅킹 경험 가능성에 영향을 미치는 변수는 인터넷뱅킹에 대한 자기효능감(+)이었다. 셋째, PC 기반의 인터넷뱅킹 이용 수준에 영향을 미치는 변수와 스마트폰 기반의 인터넷뱅킹 이용 수준에 영향을 미치는 변수를 각각 분석하여 비교한 결과, 영향을 미치는 변수가 동일하였으며, 직업유무(+), 연령(-)과 소득수준(+), 인터넷뱅킹에 대한 자기효능감(+)이 PC 및 스마트폰 기반의 인터넷뱅킹 이용 수준에 공통적으로 영향을 미치는 것으로 나타났다. 결론적으로, 향후 인터넷뱅킹의 세대 및 소득계층 간의 활용성 격차가 현재의 양극화 현상을 심화시킬 가능성에 대한 논의와 그에 대한 대책 방안을 모색하는 것이 필요하다고 하겠다. English Abstract: Although the channel of consumer finance has been moving from offline to online since the early 2000s, a few consumers are still unfamiliar with Internet banking services. This study examined the factors affecting Korean consumers’ Internet banking adoption and use behavior, focusing on the differences between PC banking and smartphone banking. The data used in this study was collected by the Korea Consumer Agency during November 2017, and the sample frame included consumers with various age groups, ranging from their 20s to 80s. The major results of this study are follows. First, consumers who were employed, aged in their 20s to 40s, earned monthly household income over 2,500 thousand won, high in the level of self-efficacy, and low in the level of perceived risk were more likely to use Internet banking services. Second, the consumers’ level of self-efficacy was a common factor for enhancing the likelihood of experiencing a PC-based Internet banking service, as well as the smartphone-based Internet banking service. Third, consumers who were unemployed, aged in their 50s to 60s, and low in the level of self-efficacy were less likely to use Internet banking services frequently. Fourth, consumers those who were unemployed, aged in their 50s to 60s, and low in the level of self-efficacy, were more likely to have a higher number of consumer- finance related mobile applications in their smartphones. Based on the above findings, potential problems can occur in the future with respect to the different levels of Internet banking use behavior, as well as its adoption. To reduce the gap between the high-use group and low-use group, provisions of the consumer education program, specifically targeting the improvement of self-efficacy, are required for relatively vulnerable consumers in terms of the generation and income level.

In recent decades advances in technology have changed the banking industry. The advancement of e-commerce and e-society is dependent on electronic banking, particularly internet banking. This rapid advancement of computer technology, especially the internet, has enabled the banking industry to provide services to customers more efficiently and efficiently. However, the main problem of Internet banking faced by internet banking providers in Afghanistan is that many of the banks' customers are unwilling to adopt the Internet banking services offered. This happened due to various factors. This can be because of customers' personal experiences, awareness, level of internet access, and diverse socio-cultural backgrounds. Therefore, this research aims to identify the factors that affect customers' adoption of internet banking in Afghanistan. In this study, the factors which can influence customer adoption of Internet banking include perceived usefulness, perceived ease of use, attitude, and intention. In this study, a survey questionnaire was distributed among 184 Afghan participants and provided valuable feedback and responses about the above factors that affect customers' adoption of Internet banking. The results from this study indicated that among the studied variables, perceived usefulness, ease of use, attitude, and intention were closely linked to internet banking adoption in Afghanistan. The results of the present study may provide valuable practical implications for banks and financial industries. It also helps banks to understand the significant factors in providing efficient internet banking services to the Afghan community.

The increased adoption and infiltration of the Internet has recently redefined the playground for retail banks. Retail banks are now offering their services primarily through their Internet banking branches. The repercussions of this change to “brick and mortar” banks have been studied in the context of developed market economies. In this paper, we contribute to the literature by studying the impact of Internet banking adoption on banks’ deposit collection, lending activities, and performance in an emerging market setting. By using a panel of 18 retail banks that operate in Turkey from 1990-2008, we demonstrate that Internet banking adoption has a positive impact on the level of profits, deposits and loans per branch. As operational activities are now provided via Internet branches, Internet banking facilitates banking activities in branches that require more human input. We also find that Internet banking adoption has a negative impact on bank profitability after 2 years of adoption as Internet banking increases competition and results in lower interest income. Accordingly, Internet banking complements brick and mortar branches.

In the midst of the pandemic, adoption and use of internet banking has become a necessity and not a choice. However, there is still some reluctance by some banking customers in adopting online banking. Using a quantitative research design a sample of 125 bank customers of Bank of Botswana in Gaborone to investigate factors that impede the adoption of online banking a questionnaire adopted, Online Technology Acceptance Model was adopted to collect the data using the convenience sampling method. SPSS (Statistical Package for Social Sciences) was used to analyze the data. The study revealed a lacuna between adoption of the service and security concerns bordering on cyber fraud as some of the causes of non-adoption of using internet banking. Among the recommendations, it was suggested that banks should consider offering cheaper internet provision to their customers, reduction of overall online banking costs, provision of adequate information about internet banking services and benefits as well as embarking on aggressive advertising and marketing to ensure that the services were well known by the bank clientele. The study further recommended that Bank of Botswana should as a matter of urgency devise and implement strategies that would foster and increase customer trust in internet banking systems across the banking sector including the provision of training to their clients related to the use of internet banking. The implications of the study have far reaching consequences in the current dispensation where the whole world is affected by the COVID 19 pandemic when the adoption of internet banking has become a necessity in the “new normal”. Internet banking and online banking were used interchangeably in the study.

This paper addresses significant gaps in existing knowledge about the Internet banking landscape. Using information drawn from a survey of national bank examiners, we find that while only 20 percent of national banks offered Internet banking in Q3 1999, these transactional Internet banks accounted for almost 90 percent of national banking system assets and 84 percent of the total number of small deposit accounts. All of the largest national banks offered Internet banking, but only about 7 percent of the smallest banks offered it. Among institutions offering Internet banking, large banks are more likely than small banks to offer a broad range of services on the Internet. Matching call report data to the examiner survey information, we also find that banks in all size categories offering Internet banking tend to rely less on interest-yielding activities and deposits than do non-Internet banks, and institutions with Internet banking outperformed non-Internet banks in terms of profitability. Excepted from the superior performance of Internet banks versus non-Internet banks are de novo Internet banks, which were less profitable and less efficient than non-Internet de novos. Projections based on banks’ plans as of Q3 1999 indicate that 45 percent of all national banks will be offering Internet banking by the beginning of 2001. While most of the growth in new Internet banking will be due to small banks coming online, almost half of all national banks had no plans to offer Internet banking. Large banks have more aggressive plans to offer business Internet banking services in the future than small institutions.We develop logit models to explain why banks choose to adopt Internet banking, and why some choose to offer a relatively wider array of Internet banking products and services. Among the key factors explaining which banks have chosen to offer Internet banking are membership in a bank holding company, physical location of the bank in an urban area, relatively higher premises and other fixed expenses to net operating revenue, and higher noninterest income, and efficiency than non-Internet banks. More profitable banks were more likely to adopt Internet banking after Q2 1998, but more profitable institutions were less likely to be among the “first movers” - i.e. banks adopting Internet banking as of Q2 1998. Among banks that offer Internet banking, larger banks and banks that offered the service for a longer time were significantly more likely to offer a wider range of services on the Internet.

The aim of the study was to analyse the role of social media on the adoption of internet banking by university students in Zimbabwe. The study adopted a sequential explanatory research design with the goal of using mixed research approach. Purposive sampling technique was adopted. A sample of 450 university students studying qualifications ranging from certificates to master degrees were selected from two (2) public universities and two (2) private universities in Zimbabwe. Data was gathered using questionnaires which were distributed to 450 university students. The study revealed, through a Chi Square test that there was a relationship between social media messages and videos on internet banking accessed by university students per day and adoption of internet banking by the university students. The study also found university students frequently check out videos on internet banking sent and uploaded on social media platforms by the banks. The study found that the effects of social media on adoption of internet banking by university students are that social media friends of the students have approved use of internet banking products, banks provide advice on internet banking using social media, videos and messages which are easy to understand, banks frequently give updates on internet banking issues using social media and banks also share latest technologies through social media. The study revealed that banks are slow at responding to internet banking queries raised by students in various social media platforms. The study recommends that banks should be very alert on social media and quickly respond to their customers’ messages. Banks should carry out some training online workshop for their clients who use Facebook so that they can understand the needs of the customers and make their products easy to understand.

The international world has witnessed significant developments in internet banking. This has presented opportunities to both banks and customers in the world of e-commerce. The adoption rate for internet banking in South Africa has been low, compared to other developing countries. With a reasonably well developed infrastructure, South Africa presents itself with great market potential for internet banking. Given this scenario, this paper examines the factors influencing the adoption of internet banking in South Africa. A survey was conducted using a sample of 400 consumers using a quantitative and descriptive design. The results indicate a relationship between the selected biographical variables and the adoption of internet banking. Perceived usefulness, an indicator of relative advantage was associated with the adoption of internet banking. Users considered internet banking to be less complex and less costly than non-users. It emerged that both users and non-users did not consider social influences as being a factor in the adoption of internet banking.

This research investigate the adoption of Internet banking among Gaborone`s working class and university students. Internet banking comes with convenience and lower costs, which encourage customers to adopt it. Hindering factors to Internet banking adoption include lack of trust and awareness. The study is based on a quantitative research approach. The results suggest that Internet banking adoption is almost the same between the working class and university students. The main factors that support Internet banking adoption are perceived ease of use, perceived usefulness and compatibility. The study findings are consistent with previous studies done in other countries, which show same factors that promote and hinder internet banking adoption. The study therefore contributes to our understanding about factors that promote and hinder internet banking by customers. Furthermore studies may focus on the rate of internet adoption among age groups, income and social status.