Abstract
In Bangladesh, the expansion of Internet banking is beset with several infrastructural, institutional, and regulatory constraints. Despite the constraints, efforts by the Bangladesh Bank in modernizing the country’s payment system and commitment by the government in building ‘Digital Bangladesh’ have brought competition among the scheduled banks to improve banking services and rapidly adopt Internet banking on a wider scale. However, several opinion polls have revealed that many clients are found reluctant in adopting banking via the Internet because of their concerns about the privacy of the personal information they provide to online. Using the theory of planned behaviour as its theoretical basis, this study examined the relationships among beliefs about Internet privacy and trust, along with beliefs about perceived behavioural control and the expectations of important others and online banking behaviour. Data were collected from 327 university students. Analysis of the data indicates that beliefs about trust and privacy positively affect attitudes toward Internet banking, but attitude is found not to significantly affect Internet banking behaviour. Normative beliefs positively affect subjective norms which in turn affect Internet banking behaviour. Similarly, beliefs about self-efficacy regarding Internet banking positively affect perceived behavioural control, which in turn affects actual online banking behaviour.
Highlights
Advances in information and communication technologies, in growing Internet use for business transaction, have had a profound impact on the banking industry (Durkin, 2007)
This study was done in order to check Internet banking behaviour in the context of Bangladesh
One of the most important findings of the study demonstrates that attitude towards Internet banking is statistically insignificant (H3) implying that the general attitude of the people has not yet been shaped to adopt internet banking practice at this particular stage of time
Summary
Advances in information and communication technologies, in growing Internet use for business transaction, have had a profound impact on the banking industry (Durkin, 2007). Bangladesh Bank (the Central Bank of Bangladesh) recently introduced online payment systems facilitating fund transfers and payment of utility bills on the Internet This move will certainly enhance the use of e-commerce and Internet banking services facilitating financial transactions of the subscribers of all commercial banks in Bangladesh. Despite all these potentials, these systems remain unnoticed as well as underused by the customers (Byron & Ahmed, 2009). How individual beliefs about privacy and trustworthiness of the Internet influence individual intentions to adopt Internet banking behaviour is to be explored With this end in view, a research framework was constructed for this study based on the Theory of Planned Behaviour (TPB) developed by Ajzen (1991). A discussion of the meaning of the results and their implications concludes the paper
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