Banking Adoption Research Articles

Identification and Ranking the Barriers to Adoption and Development of Electronic Banking in Iran

Abstract Today, the amazing speed of development of information technology and informatics industry, causing major changes in the handling money and resources in areas that are new concepts as electronic banking and electronic transmission provided. These two concepts, the creator of a new type of banking under the Banking electronics.

Hedging neoliberalism: derivatives as state policy in Mexico

ABSTRACTThis article fills the gap in the critical political economy literature by acknowledging the adoption of derivatives as state policy in middle-income countries such as Mexico. The article argues that the Mexican state has turned derivatives into a policy instrument to deal with the capitalist contradictions intensified by neoliberalism. This has created a particular institutional setting that favours large firms and financial investors over working classes. The article examines the role of derivatives as policy instruments in Mexico through the Mexican Ministry of Agriculture’s use of corn futures options during the 2007–8 food crisis and Ministry of Finance's and Central Bank's adoption of hedging strategies through oil derivatives and US dollar put options to preserve the state budget and increase foreign reserves respectively during the 2007–10 global financial crisis.

أثر التخطيط الاستراتيجي في نجاح البنوك الإسلامية اليمنية

This study aimed at investigating the implementation of strategic planning in the Yemeni Islamic banks and the success of the Yemeni Islamic banks. It also aimed to identify the impact of strategic planning implementation in the level of the success of the Yemeni Islamic banks.The population of the study consisted of all the Yemeni Islamic banks. The sample of the study included all of these banks, particularly the their general administrations and headquarters in the capital Sana’a. The researcher has purposefully chosen a thorough sample from the employees of these banks by (150) items which involved all the managers and their deputies and the heads of the departments in the headquarters and branches of the Yemeni Islamic banks.The researcher gathered the data by developing a questionnaire to examine the objectives of this study and test its hypotheses. Data were analyzed by using SPSS and the method used was the statistical descriptive method and the inferential statistics.This study has come up with certain findings, foremost of which is that the level of the adoption of the Yemeni Islamic banks for the strategic planning was high and the level of success was also high. In addition, there was a positive correlation between the implementation of the Yemeni Islamic banks for all the strategic planning activities and the level of success of these banks. The study also showed that there is a positive impact on the implementation of the strategic planning activities in increasing the success of the Islamic banks in Yemen and improving their efficiency and effectiveness.The study suggested certain recommendations in light of the findings concluded. Keywords: Strategic planning, strategy, Yemeni Islamic banks, success of the Islamic banks, efficiency, effectiveness.

Influence of Member Income on Table Banking Adoption Among Rural Households A survey of Machakos County, Kenya

The purpose of the study was to assess influence of the income level on table banking adoption. The study was guided by social capital theory and employed descriptive survey and explanatory research design. The target population was 1084 members of table banking groups in Machakos County. Simple random sampling technique was used to select a sample size of 188 members. The researcher used questionnaires to collect data from members of the group and interview schedule to collect data from table banking group leaders. Data on demographics was analysed by descriptive statistics which included means, frequencies and percentages. Hypothesis was tested by multiple regressions with the aid of SPSS. Results were presented in form of tables, graphs and charts. The study revealed that there is a negative and significant relationship between members’ income (r=-0.163, p=0.032) <0.05) and table banking adoption. This means that the higher the income, the less likely they are to adopt table banking. Thus, encouraging the members to participate in formal and beneficial social networking would go a long way in making sure that the members are well informed in terms of improvement of their saving culture through the adoption of table banking.

THE ROLE OF THIRD PARTY SUPPORTED FOR DETERMINING CUSTOMERS ADOPTION OF INTERNET BANKING

Definitely the Internet banking services adoption (IBSA) represents a good opportunity for developing nations to attain greater economic development and growth. This sector plays a vital role in developing numerous businesses and increasing Gross Domestic Product (GDP) in different countries, particularly in developing countries, such as the Republic of Iraq. Although a lot of research evidences the wide adoption of Internet banking in developed nations, there is still limited research in developing nations in the Middle East, specifically in Iraq on this area. There is definitely a need in this country to identify the factors that could encourage IBSA. There is also a paucity of empirical research on IBSA from the perspective of customers. Taking these into cognizance, this quantitative research aims to understand IBSA, by investigating the key factors that encourage customers to adopt Internet banking in the Iraqi context, using the Theory of Planned Behavior (TPB). In order to test this framework, a quantitative approach using the survey method is employed consisting of twenty eight (28) items with a seven-point Likert scale. Based on proportionate stratified random sampling, 535 out of 800 employees. For analysis purposes, Partial Least Squares-Structural Equation Modeling (PLS-SEM) was applied. Findings of this study reveal that all the research hypotheses are supported except one, namely subjective norms. This study found out there is high impact the role of third party support toward Internet banking services adoption among Iraqis customers.

Perceived Security as Trust Indicator in Adoption of Internet Banking in a Developing Country

Internet Banking is becoming an important channel for banks to deliver banking services to their customers. In view of the potential benefits of Internet banking, banks are making heavy investments in building infrastructures, to offer to their customer's facilities for transacting with the bank online. While the Internet technology holds the potential to fundamentally change banks and the banking industry, it is still haunted by low rate of adoption by bank customers due to perceived risks in transacting in the virtual environment of Internet. This study makes a modest attempt to find the various factors/components of security that influences the user's security perception which in turn acts like a trust indicator towards adoption of Internet banking and proposes a research model for the same. This paper presents the empirical validation of the research model proposed through a survey of 107 internet banking users.

Internet Banking Acceptance: A Comparative Study Between the Kingdom of Saudi Arabia and the USA

Internet banking, as with various types of electronic commerce, has grown from consumers’ needs to have greater access to banking services beyond the normal operating hours of teller-staffed banks. Also, new applications such as mobile devices used for Internet banking have provided the impetus to meet rapidly growing and sustained increases in retail e-commerce. Internet banking (IB) has been well-researched from the perspectives of perceived ease of use (PEOU) and perceived usefulness (PU) as indicants that positively affect adoption. Using the Consumer Internet Banking Model (CIBM) the goal in the present study was to investigate IB adoption based on the effects of three additional factors: perceived privacy, perceived Web security, and trust. The CIBM is a theoretical model designed to help researchers and practitioners to better understand the acceptance and adoption of Internet Banking. The initial findings of the present study suggest that Saudi Arabian respondents differ significantly from their USA/American counterparts with respect to security, privacy, and trust with respect to adoption of Internet banking, and intentions to use Internet banking. The final section of the paper presents future research avenues and concluding remarks of the findings. Keywords: Internet banking, Perceived Privacy and Perceived Web Security, Trust, Saudi Arabia, USA

Typology of Resistance to e Banking adoption by Tunisian

Online banking is facing various types of resistance that may hinder its adoption by consumers. This paper aim to identify barriers to the origin of non-adoption of e banking and to provide a better comprehension of online bankig non adoption it is based on a survey of nearly 150 Tunisians bank customers non-adopters of e banking. This study identifies three groups of non- adopters of online banking: postponers, opponents and rejecters. The results indicate, first, that these groups of non- adopters differ significantly with respect to psychological barriers (tradition and vision). They highlight on the other hand that functional barriers (use value and risk) have no impact on resistance to e banking. The results provide managerial implications for Tunisian executives to better profile their customers.

Consumer trust and distrust: retaining paper bills in online banking

Purpose– The purpose of this paper is to explore the role of paper bills and statements in online and mobile banking and how they may serve to support trust along with mitigating distrust for consumers when dealing with banks and billing firms.Design/methodology/approach– A two-phase study with 208 Canadian online bill payers. Phase 1 verified the comprehension of the measurement items being tested. In Phase 2, exploratory factor analysis was used to determine the factor structure. Regression analysis was used to identify the relationship of the factors with the intention to continuing receiving paper bills.Findings– Four factors for trust and distrust were identified in this study of which two (structural assurance and counted on to help) plus subjective norm predict the intention to continue receiving paper bills.Research limitations/implications– Trust and distrust are shown to co-exist in this study. Consumers feel vulnerable to the risks inherent in online financial interactions, but signal their willingness to trust by adopting online and mobile banking. Consumers mitigate the distrust they have in banks and billing firms by continuing to receive paper bills and statements. This study is limited to paper bills and statements. The role of other paper documents in customer relationship management is worthy of further exploration.Practical implications– This research investigates the role of financial documents in the consumer-firm relationship. This study suggests that paper bills are a communication method that supports consumers’ trust in the banks and billing firms and their adoption of online and mobile banking. Banks and billing firms’ continued emphasis on consumers’ giving up paper bills while insisting on original paper documentation in problem resolution situations, sends mixed messages to consumers, which heightens their distrust in these firms.Originality/value– This is the first study to suggest that paper bills and statements have a role in influencing trust or distrust of banks and billing firms.

Perception of Internet Banking Adoption: A Study on Urban Conglomerates of Udupi District, Karnataka

Banks moving towards new technology and up-to-date banking industry. Internet banking significantly make our banking and financial activities easy. Internet banking facilitates many benefits, products and services but still number of customers continue to conduct most of their banking and financial activities using traditional methods. Banks are trying to acquire expected number of customer and to retain them but somewhere it not works. For success of new banking technology, adoption plays a vital role. It is important to know perception about internet banking adoption among customers. This paper investigate customers’ perception about internet banking adoption in Udupi district. Data was collected through questionnairefrom bankcustomers’ in Udupi district.The questionnaire was formed in the dimension which measures perception about adoption of internet banking among urban conglomerate of Udupi district. Results of this study shows that most of the respondents were concerned about safety and perceive that internet banking is not very much trustworthy. However they feel that it is easy, convenient, time saving and profitable.This study will be useful to find out perceptual factors about internet banking adoption and mayhelp banks to improve their strategies to acquire more customers.

Factors that Influence the Adoption of Online Banking Services in Hyderabad

The purpose of this research paper is to determine those factors that influence the adoption of online banking services in Hyderabad. A theoretical model is provided that conceptualizes and links different factors influencing the adoption of online banking in Hyderabad. A total of 302 respondents in Hyderabad were sampled for responding. Factor analyses and regression technique are employed to study the relationship. The results of the model tested clearly that use of online banking is influenced by channel convenience, perceived risk, security perception, prior internet knowledge and information on online banking. The results also determine that demographic factors also impact significantly on online banking. Finally, this paper suggests that an understanding the factors affecting intention to use internet banking is very important to the practitioners who plan and promote new forms of banking in the current competitive market

Econometric investigation of internet banking adoption in Greece

Purpose – The purpose of this paper is to examine if high branch fees, branch dissatisfaction as well as any previous experience of Greek banking customers with other banking technologies (i.e. Automated Teller Machines (ATMs)) have any impact on the probability of internet banking adoption. Further, the authors comment on the socio-economic and demographic characteristics of Greek banking customers, which effect the decision to adopt internet banking services. Design/methodology/approach – The authors employed the logistic regression model to examine the probability of Greek customers adopting internet banking based on certain demographic characteristics but also due to high branch fees, any dissatisfaction with branch services or due to previous experience of electronic banking technologies (ATMs). Findings – After estimating a logistic model, the authors report that branch dissatisfaction and high branch fees have no impact to the internet banking adoption in Greece, therefore Greek customers prefer to visit branches and are willing to pay high fees for the transactions. However, the authors find that ATM users are more likely to adopt internet banking services in Greece. Research limitations/implications – The authors should employ a technology acceptance model, to test the effect of perceived ease-of-use, perceived usefulness and technology self-efficacy of customers on the probability of e-banking adoption. The authors should also examine other hypotheses using recent data from other European countries and compare the results with those from Greece. Practical implications – The findings are strongly recommended to Greek bank managers. Originality/value – The research is primarily motivated by the lack of similar studies to explain empirically the characteristics of Greek bank customers which affect the adoption of internet banking.

Resistance to Internet Banking Adoption in Tunisia

Adoption of online banking has been studied in detail with respect to theories of consumer behavior, yet the adoption of Internet banking still provides an attractive area of research. A new wave of research supports the importance of understanding consumer behavior within the perspective of resistance, and attempts to address the theoretical knowledge gap between technology acceptance and adoption. In this respect, this research examines the factors that inhibit people to adopt and use Internet banking as a complementary financial service. An abductive investigation based on the grounded theory methods has been used. Findings suggest that the important factors which slow the adoption of Internet banking were the lack of information about the service, and the satisfaction with the existing alternative that individuals are currently using (bricks-and mortar, ATMs, and mobile banking). Other influential factors are highlighted. Implications for academicians and practitioners are discussed.

Free Banking in History and Theory

This paper surveys economists’ work on the theory and the history of free banking regimes. Support for free banking - a laissez-faire monetary system without a central bank, typically conceived as operating under a commodity standard - has been much rarer than support for free trade, even among self-identified free-market economists. Yet where something close to a free banking system was given a trial, for example in Scotland and Canada (seven other cases are also reviewed), the consensus among economic historians finds that it functioned better for the typical user of money and banking services than more heavily restricted systems in other countries. The widespread adoption of central banking, despite the success of free banking, can be explained by the latter’s fiscal advantages to national governments. The standard arguments for deposit insurance, and the leading counter-arguments, are also reviewed. Recent work on the importance of credible commitments - in monetary, fiscal, and bank regulatory policies - has the potential to reinvigorate the case for free banking on a commodity standard.

Internet-banking customer analysis based on perceptions of service quality in Taiwan

All economic activities require monetary transactions, including those occurring online. The Internet is thus an essential medium for monetary transactions. Because Internet banking is highly profitable, competition among banks is fierce. However, customer satisfaction is crucial for building a profitable business model. Satisfied users tend to become loyal customers who adopt banking services that regularly contribute to bank profits. Therefore, how to provide services that users require is an important consideration when banks develop service products. Customer perceptions of good service quality are perceptions that improve customer satisfaction. Although service quality is important to users when selecting banking services, the effect of perceived service quality on customer adoption of Internet banking in Taiwan is rarely studied. This study identified three clusters of Internet banking customers based on customer perceptions of service quality in order to help banks develop service products. Each cluster was described in terms of demographics, consumer behaviour, perceived service quality, customer satisfaction, and customer loyalty.

Investigating the effect of information on mobile banking acceptance barriers

Article history: Received March 20, 2014 Accepted 5 July 2014 Available online August 14 2014 This paper presents an empirical investigation on how information and guidance offered by the bank influence on the barriers to adoption of mobile banking. Data were collected from a questionnaire from college students who attend Islamic Azad university in city of Tehran, Iran. Structural equation modeling of data from 425 respondents was used to test 5 hypotheses. The results show the information and instructions offered by bank have negative effect on 5 evaluated barriers including usage, value, risk, tradition and image to adoption of mobile banking. © 2014 Growing Science Ltd. All rights reserved.

Factors affecting the adoption or acceptance of internet banking services: a review and analysis of past research

Extensive review of literature shows that there is scarcity of facts related to retaining the old customers of internet banking and acquisition of new customers. This study is conducted to examine the trend of internet banking usage, its attributes and various factors affecting its adoption. The aim of this paper is to present the manager's view along with the customer's view in internet banking and services to reduce the gap between customer's perceptions and manager's perceptions regarding factors affecting adoption of internet banking. This paper provides an insight into the key factors such as security, reliability, accessibility, availability, and cost, etc. used by researchers that should be kept in mind by customers before selecting particular internet banking services. These findings will be useful for new researchers who want to explore new dimensions in this field along with reducing the cost of customer acquisition, provide better service quality and higher customer retention rate.

Does Geography Matter?

This study investigates the role of geography in shaping the average bank office size in Illinois banking. “Geography” here refers to a host of socioeconomic, demographic, and local community characteristics at the bank market level. The study finds that larger bank markets, higher levels of market concentration, higher percentages of whites within the total population, and less physical fragmentation within a geographical bank market contribute to larger average bank office sizes. The use of technology, represented by higher percentages of physical capital and premises in the total assets, is found to reduce the bank office size. This tendency is further reinforced by a lack of economies of scale at the bank office level. At the same time, the study finds that the greater adoption of internet banking is associated with larger bank offices. These findings provide indirect evidence that market structure has an impact on the adoption of alternative banking technologies. A study of bank office size has practical implications in providing insights into the future branch strategy, as well as the inadequate nature of measures of market power currently used in antitrust regulation.

Factors affecting the adoption of internet banking in Greece

The effect of nine factors on internet banking acceptance is empirically tested, using structural equation modelling. The technology acceptance model was used as the theoretical framework on which a hypothesis was constructed for the association among the model’s variables. The results indicate that the quality of internet connection is a strong influencing factor, as is the perceived security of transactions, with both having a strong effect on actual internet banking use. Individuals’ willingness to use the service is also significantly affected by these two factors, and can be substantially impaired by an inherent resistance to change. This resistance can be eroded if individuals are made aware of the advantages, such as a saving of time and an increase in convenience, to be gained from shifting to online transactions, and if individuals are reassured about the safety of their transactions.

Internet banking services as tool of CRM: a study of customer satisfaction in the National Capital Region, Delhi

CRM has emerged as one of the popular solutions for diminishing market share and sluggish growth in banking and financial sector. Since internet banking is based on the use of the internet, the services are mainly used in major cities of India. Internet banking is also considered an important CRM tool by the banks and is used as a business strategy to create, retain and maintain long–term profitable customer relationship. This paper examines the adoption of internet banking as a CRM tool by leading Indian banks. The study surveys the opinions of 400 customers of two public sector banks and two private sector banks (100 from each bank). ANOVA has been used for getting insights into internet banking services provided by the sample banks. The four selected banks are assumed to represent the banks in both the private and the public sectors and their CRM practices.