Banking Adoption Research Articles

Factors Affecting Adoption and Operation of Electronic Banking in Woliso District of Commercial Bank of Ethiopia: The Case of Woliso Town

Now days, Electronic banking has brought about uprising in the performance of banks as it offers most important opportunities to banks and customers. This thesis aims to assess the factors that affect the adoption and operation of e-banking system from bank perspective. From this general objective, four specific objectives were explored. This study integrated Technology- Organization-Environmental (TOE) model and Diffusion of Innovation theory (DOI) to achieve the objective of the study. Only primary data was used for this study. The data was collected through semi-structured interview from seven management body: five branches managers, one district manager and one IT manager. In addition to this, data was gathered though focus group discussion with six IT department staff and six Bank clerks. The data was analyzed qualitatively .The result indicates that lack of technological knowledge, lack of management support, shortage of training, infrastructural problem, perceived risk and economic factors were found as the key factors hindering e- banking adoption. The study also revealed that government support and perceived benefit influence the adoption of e-banking positively. Finally this study identified loss of power, hardware malfunction, operating system crashes, network partitions, failure of internal controls, human errors, access to systems and negligence arising out of the employees are the most important factors affecting operation of e-banking among different branches . To this end, this study recommended a number of action for various challenges identified in the thesis. These include: government needs to expand ICT infrastructure and improve the existing telecommunications infrastructure at the local and national level Keywords: E-banking, Adoption, Operation, Technology-Organization-Environmental model, Woliso Town. DOI: 10.7176/EJBM/14-17-03 Publication date: September 30 th 2022

The Interconnection between Level of Income and Tendency of Malaysian Community towards Adoption of Islamic Digital Banking

Objective – This study is aimed to investigate the interconnection between the average income level and the tendency of the Malaysian community toward the adoption of Islamic digital banking. Methodology – This study used a quantitative survey questionnaire with 100 valid respondents. The data were collected within 3 months and the SPSS software was applied in this study to analyse the data using descriptive analysis. Cronbach's alpha tests were used to determine the reliability of multiple questions based on the Likert scale questionnaires in this study. Findings – The general finding of this study shows that the group with lower income levels is more responsive to the adoption of Islamic digital banking compared to the higher income group. It indicates that this group believed that Islamic digital banking can be beneficial to the community socially and economically in terms of perceived usefulness, perceived ease of use, and transaction cost. Novelty – The emergence of this study is to contribute the literature and reference related to Islamic digital banking for the interest of researchers, practitioners, and consumers in developing further research and the adoption of this platform in the future. Type of Paper: Empirical JEL Classification: G21, G24. Keywords: Digital Banking, Islamic Digital Banking, Income, Interconnection. Reference to this paper should be made as follows: Aziz, M.R.A; Mustafar, M.Z.I. (2022). The Interconnection between Level of Income and Tendency of Malaysian Community towards Adoption of Islamic Digital Banking, J. Fin. Bank. Review, 7(1), 51 – 58. https://doi.org/10.35609/jfbr.2022.7.1(3)

The Interconnection between Level of Income and Tendency towards Adoption of Islamic Digital Banking

During the globalisation period, information and communication technology (ICT) has profoundly impacted various fields, particularly in the banking and finance sector in which resulted to the emergence of digital banking. When a country's majority population is Muslim, such as Malaysia, Islamic digital banking becomes required to arise in order to meet the needs of the country's community to enjoy the halal financing products given by Islamic banking. However, the community may respond or not to the adoption of new technology such as Islamic digital banking since there are certain elements that impact people's proclivity to accept this new technology. This study is aimed to investigate the interconnection between the average income level of Malaysian community and the tendency Malaysian community toward the adoption of Islamic digital banking. This study used a quantitative survey questionnaire with 100 valid respondents. The SPSS software was utilised in this study to analyse the data using descriptive analysis. The general finding of this study shows that the group with lower income level be responsive about the adoption of Islamic digital banking compared to the higher income group. It indicates that, this group believed that Islamic digital banking can be beneficial to the community socially and economically. Keywords: Information and communication technology, banking and finance, Islamic digital banking, level of income, tendency, Islamic Finance

A Study of Factors Influencing Customers’ Adoption of Mobile Banking in Oman


 
 
 The commercial banking sector in Oman is a dynamic sector with a large number of banking service users. However, the customers’ adoption of technology in terms of online banking and mobile banking remains less due to the various socio-demographic factors. Given the cost and operational benefits of mobile banking, there is a need to understand how commercial banks can motivate non-mobile banking users to adopt mobile banking in this context. Thus, the current study is conducted with a view to understand customers’ adoption of mobile banking using the Perceived Characteristics of Innovation model. The data is collected from the commercial bank account holders who are non-users of mobile banking (n=80). The key findings are that perceived ease of use (β=.487, P<.05); and observability (β=.530, P<.05) positively and significantly influence customers intention to use mobile banking; whereas, relative advantage (β=-.068, P>.05); compatibility (β=-.413, P>.05); and trialabiltiy (β=.371, P>.05) exert insignificant influence on customers intention to use mobile banking. Based on these findings, it can be concluded that perceived ease of use and observability are key factors which commercial banks need to focus to encourage customers to adopt mobile banking.
 
 

Consumers' Intention to Adopt m-payment/m-banking: The Role of Their Financial Skills and Digital Literacy.

The adoption of mobile payment (m-payment) and mobile banking (m-banking) is low in several countries, despite its associated benefits. The present study examines the impact of Pakistani consumers’ financial skills and digital literacy on their intention to adopt m-payment/m-banking using the Technology Acceptance Model (TAM). The data were collected from 454 individual smartphone users residing in Punjab province via an online and offline questionnaire survey. Structural equation modeling was used to analyze the consumers’ data. The results endorse that (1) their financial skills have no association with intention to adopt but through perceived usefulness; (2) their digital literacy bridges a strong association with intention and through perceived ease of use. Furthermore, this study discusses the theoretical and practical implications of the findings, as well as limitations and future directions.

Exploratory Study on Understanding Intention of M-banking Use based on Trying and Behavioral Reasoning Theory

The present study seeks to examine the intention of the new technology adoption of software-based mobile banking (M-banking) by considering two theories with a combination of structural equation modeling (SEM) and interpretive structural modeling (ISM). The combined role of these two theories (and two combined methods) is examined for the first time. The object of this study consists of 385 customers of Iranian banks. Data are collected through a questionnaire and analyzed using the structural equation model. Since the structural equation model is used to validate variables and determine the impact intensity, the ISM method is applied to understanding mutual influences amongst the variables' dimensions and finding the magnitude of effects of these variables on attitude. The results of hypothesis testing show that logical and illogical reasons for M-banking adoption significantly affect customers' attitudes toward the use of M-banking. The results of ISM show that "Usage Barrier" has the highest impact among its elements. As the two theories are combined and examined to classify the intensity of the effects, the factors in adoption behavior are investigated for an understanding of the effect of new technologies of mobile banking applications on its use.

Did the effects of the pandemic affect online/digital banking adoption in Sri Lanka

The research paper sets light on why the public is reluctant to adopt online/digital banking products even during the COVID-19 pandemic. The research was conducted from a deductive approach having stratified random sample from the districts of Colombo, Gampaha and Kandy. Hypotheses were designed based on rigorous review of literature. Data obtained from the survey was analysed through binary logistic regression to identify the impact of the variables on adoption of online/digital banking products. The study concludes that computer and internet literacy, perceived usefulness and awareness were the most influencing factors of adoption of online/digital banking products. The study is significant since it takes the effects of pandemic into consideration. The study argues that the contradictory nature observed in some variables, which were well established in previous studies, is caused by the pandemic and thereby leads for recommendations, which would support enhancing banking operations on online/digital banking products.

Did the effects of the pandemic affect online/digital banking adoption in Sri Lanka

Did the effects of the pandemic affect online/digital banking adoption in Sri Lanka

Adoption of online banking in Goa amidst the pandemic

Adoption of online banking in Goa amidst the pandemic

Empirical Study on Adoption of Islamic Banking System Using Quantitative Method: A Case Study of Afghanistan

Although the background of the banking system goes back as far as 1933, Islamic finance is still new in Afghanistan. The history of the first full-fledged Islamic bank began as recently as 2018 with the conversion of Bakhtar Bank, a conventional bank, to the Islamic Bank of Afghanistan (IBA). There have been numerous studies done worldwide, but no empirical study has examined the subject of Islamic banking adoption in the specific context of Afghanistan. Therefore, this present study investigates the adoption of Islamic banking in Afghanistan, using a case study of Herat province, based on Rogers’ (1983) Diffusion of Innovation Theory, to determine the impact of awareness, product knowledge, religiosity, relative advantage, compatibility, and complexity on the adoption of Islamic banking. A quantitative approach to the stratified convenience sampling method was used in this study. Questionnaires were distributed to 334 bank customers and the responses analyzed using SPSS v22. The multiple regression analysis finding indicated that product knowledge, relative advantage, and religiosity significantly and positively influenced the adoption of Islamic banking. It is suggested that the government and financial institutions should support Islamic banking with beneficial policies and initiatives to enhance the knowledge of the public about the significance of Islamic banking activities.

Unfolding factors behind internet-banking adoption in Bangladesh: An extension of UTAUT2 with perceived security and trust

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.

Security, Perception, and Practices: Challenges Facing Adoption of Online Banking in Pakistan

Online banking is a contemporary mode and a technological channel to facilitate the emerging demands of customers today. Increase in number of customers for online banking as a matter fact is related to customer’s awareness in a geographical space. Many customers today are adopting online banking through internet for their financial transactions especially in the current COVID-19 pandemic situation, however, due to lack of awareness, expertise and connectivity resources, a majority of prospect customers still have not adopted this new mode of transaction in Pakistan. The main objective of this study is to know the customers’ perception regarding the usage of online banking in Karachi Pakistan. Most of the researchers so far have suggested that mostly the customers are unaware about online banking services and the reason, moreover due to lack of trust among customers on online banking services, customers are reluctant to adopt this medium for the financial transactions. This research project thus examines the customer’s trust, perception, problems related to online banking and suggests about online banking concerns especially in the context of Pakistan. This study explains that mostly customers prefer online banking services over branch banking due to its reliability, convenience, safety, speed and security, user-friendliness, and error less system. The findings of this study will provide the banks the answer to the questions that how they can provide online banking better services and what are the major issues that should be reduces in society to satisfy customers in a better way, so that they can compete their competitors in the industry and overall increase the number of online banking customers.

Factors Influencing Adoption of Islamic Banking in Morocco: An Exploratory Study

Factors Influencing Adoption of Islamic Banking in Morocco: An Exploratory Study

Banking on the Confucian Clan: Why Did China Miss the Financial Revolution?

Over the past millennium, China has relied on the Confucian clan to achieve interpersonal cooperation, focusing on kinship and neglecting the development of impersonal institutions needed for external finance. In this paper, we test the hypothesis that the Confucian clan and financial markets are competing substitutes. Using the large cross-regional variation in the adoption of modern banks, we find that regions with historically stronger Confucian clans established significantly fewer modern banks in the four decades following the founding of China’s first modern bank in 1897. Our evidence also shows that the clan continues to limit China’s financial development today.

An Investigation on Mobile Banking and Co-creation Services Adoption Intention in South Africa

<p>Co-creation of value between the consumer and services providers is an idea that has been receiving much attention. The purpose of this study was to investigate the influence of consumer motivation on attitudes and adoption intention of co-creational banking activities. By means of a quantitative method, 339 surveys were collected. The research instrument was compiled from existing scales that were adopted for the purpose of this study. The proposed conceptual model and hypotheses were tested using Structural Equation Mod-eling (SEM), while scale reliability and validity was confirmed using SPSS 23. Further, AMOS 23 was used to test the model fit. The findings indicated that all seven proposed hypotheses are significant. Therefore indicating that consumer motives have a positive influence on a consumer’s attitudes toward participating in co-creation activities, which in turn has an impact on rela-tive advantage, complexity and compatibility. Lastly, the results indicate that relationships exist between relative advantage, complexity and compatibility, respectively and adoption intention. This study adds to contextual knowledge of cocreational adoption within digital banking, and provides managers with significant insight into the potential success of digital customization and how banks can benefit from digital co-creation.</p>

Factors Influencing Attitude and Intention Towards Adoption of Mobile Banking in Myanmar

Constructs related to an individual's mobile banking (MB) adoption were identified from previous studies as the commonly used factors: perceived usefulness, perceived ease of use, trust, and social influence. A theoretical model was proposed with these factors directly affecting an individual's attitude and intention to use MB. Personal factors (gender, age, education, and income) were included in the model as moderators of those direct effects. As reported in previous studies perceived usefulness, perceived ease of use, trust, and social influence were found to have important effects on attitude and intention. The new findings related to the investigation of moderating effects due to personal factors have not been mentioned in the earlier MB research. The findings identified groups of individuals where personal motivations have significant effects on attitude and intention to use MB, and importantly, groups where the effects are not significant but may be increased by recommended practical actions.

Mobile banking adoption by business executives in Nigeria

Challenges with the adoption of mobile banking technologies are best understood by studies on adoption. This however requires understanding the factors that influence its adoption in a given region. Technology Acceptance Model (TAM) was adopted to understand the underlying factors that influence mobile banking adoption by business executives in Nigeria. TAM was extended to include economic issues. Data were collected from 66 business executives in Nigeria using a structured questionnaire based on the model; the questionnaire was further analyzed using principal component analysis and regression analysis. Results showed that economic issues and social influence were major determinants for mobile banking adoption by business executives in Nigeria. However, economic issues were considered as the main predictor with a p-value of 0.000. This study contributes to the existing knowledge by giving consideration to business executives’ adoption of mobile banking in a developing country.

Determinants of customers’ adoption of mobile banking in Tanzania: Further evidence from a diffusion of innovation theory

The main goal of this study was to examine the influence of demographic factors on the adoption of innovative mobile banking services in Tanzania. It utilized Rogers’ Diffusion of Innovation Theory (DIT) to ascertain the importance of situation-based demographic factors. A survey was conducted with 416 customers of a leading bank in Tanzania. The study applied self-administered questionnaires completed by the respondents who had agreed to participate. The data were analyzed using a combination of descriptive and multivariate analyses. The descriptive results revealed that the majority of respondents used mobile banking once to three times a week to check their balance, download a mini-statement, pay different bills, transfer funds from their account to a mobile telecom network, and buy airtime. The regression results further showed a positive and significant relationship between level of income and education attainment on the one hand and the adoption of mobile banking on the other. The study argues that promotional practices and awareness-raising campaigns are needed to capture the demographic profiles of customers in order to encourage them to adopt mobile banking. Theoretically, the study has shown the relevance of applying the situation-based theory to the adoption of innovative technologies as regards banking services in Tanzania. It also broadens our understanding of the importance of demographic factors that have received little attention from the dominant socio-psychological theories.

Factors Propelling the Adoption of Internet Banking: The Role of E-Customer Service, Website Design, Brand Image and Customer Satisfaction

In recent years, technology adoption has been seen as a critical and distinct topic in e-commerce research. Looking at the challenges in technology adoption faced by banking sector of Pakistan, this study examined the effect of website design, customer service and brand image on customer's intention to adopt internet banking. Additionally, customer satisfaction is integrated in theoretical framework as a mediating variable. The data for this study was collected from internet banking users. Structural equation modelling (SEM) has employed to evaluate the hypothesised relationships. The results of this study revealed that the adoption of internet banking in Pakistan is motivated by a set of specific factors (i.e., website design, e-customer service, customer satisfaction and brand image). Practically, these results will help policy makers to understand critical factors that influence on customer's intention to adopt internet banking in Pakistan. Finally, limitations and future research directions have been discussed.

The factors influencing the adoption of internet banking in Yemen

The purpose of this study is to analyse the factors that has an influence over the customer's intention to adopt internet banking in Yemen. A questionnaire was developed and distributed to the customers of most of active banks in Yemen. By using exploratory and quantitative methods, 384 questionnaires were distributed, and 301 were successfully retrieved. The collected data was examined using descriptive, correlation, and regression analyses. The findings reveal that while relative advantage, perceived risk, perceived security have no significant impact, technology readiness along with prior internet knowledge have significant impact on the intention of customers to adopt the internet banking in Yemen. This study implicitly provides a background for the hypotheses that were tested in order to validate a model for the purpose of accepting the internet banking services. Banks in Yemen are in dire need to invest heavily in internet banking and its IT infrastructure, expand services into remote areas, and build trust to attract more customers in order to increase the percentage of internet banking adopters. The study is highly crucial to the emerging financial institutions in Yemen, as it provides answers to the factors that affect the customer's intention to adopt internet banking in Yemen.