Internet Banking Adoption Research Articles

Internet banking adoption: case of Lithuania and Latvia

Internet banking adoption: case of Lithuania and Latvia

Modelling customer's intention to use e-banking in Saudi Arabia: an empirical study

This study examines how customers perceive and adopt internet banking (IB) in Saudi Arabia. Developments of this study were based on technology acceptance model (TAM) which is used with an added construct of Web Security to determine the level of adoption to use IB. Attitude, perceived usefulness, perceived ease of use, perceived Web Security and intention to use are the main constructs of the study. Intention to use IB is used as the dependent variable and the determinant of the adoption. The questionnaire of the original study was utilised with some modifications to fit the Saudi environment. The analysis in this paper is based on a sample of 252 responses, collected from individuals living in the eastern province of KSA. A series of regression analyses was used to test the six main hypotheses of this study. This study contributes to the existing body of the literature in that it confirms the findings of original study by Cheng et al. (2006). It also confirms the strength of the TAM in determining the level of acceptance to IB services in a developing economy.

Analyzing the Effect of Risks on Adopting Internet Banking using SEM approach

Analyzing the Effect of Risks on Adopting Internet Banking using SEM approach

Modelling customer's intention to use e-banking in Saudi Arabia: an empirical study

This study examines how customers perceive and adopt internet banking (IB) in Saudi Arabia. Developments of this study were based on technology acceptance model (TAM) which is used with an added construct of Web Security to determine the level of adoption to use IB. Attitude, perceived usefulness, perceived ease of use, perceived Web Security and intention to use are the main constructs of the study. Intention to use IB is used as the dependent variable and the determinant of the adoption. The questionnaire of the original study was utilised with some modifications to fit the Saudi environment. The analysis in this paper is based on a sample of 252 responses, collected from individuals living in the eastern province of KSA. A series of regression analyses was used to test the six main hypotheses of this study. This study contributes to the existing body of the literature in that it confirms the findings of original study by Cheng et al. (2006). It also confirms the strength of the TAM in determining the level of acceptance to IB services in a developing economy.

INTERNET BANKING ADOPTION: CASE OF LITHUANIA AND LATVIA

The banking sector has developed and extended usage of different services at a distance using the internet in the last decade. Internet-based banking services dominate over other historically provided alternatives. This paper explores the adoption of internet banking in Lithuania and Latvia. Internet banking success model was developed based on four main factors - ease of use, perceived risk, trust, and perceived usefulness. A survey of Lithuanian and Latvian respondents was carried out. Correlation and regression analysis was used to determine which factors influence intention to use internet banking. The results showed that the most important in both countries is perceived risk, which has a positive direct impact. Moreover, two additional factors were distinguished and analysed in the study, they are website design and customers' satisfaction with e-banking services. Limitation of the study is the respondents - they were individuals, thus the results do not reflect companies' intention to use e-banking system.

Challenges and Opportunities of Internet Banking Adoption: Evidences from India

This study is an attempt to examine the challenges and opportunities of internet banking adoption in National Capital Region (NCR) of India. For this purpose, data was collected from 262 respondents of NCR of India. The data thus collected was analysed using various statistical tools like factor analysis, correlation analysis, frequency analysis, etc. with the help of SPSS 21. Online shopping and online bill payments are the two most commonly used internet banking services by customers. The factors which encourage customers towards adopting internet banking include low cost, quick service, and convenience. On the other hand, the factors which restrain customers from adopting internet banking include privacy concern, lack of knowledge and high cost. The results of correlation analysis revealed that there is a high degree of positive correlation between resistance to change and belief of customers in paper money, lack of privacy, absence of necessity, internet connectivity problem and lack of security.

Determinants of Transactional Internet Banking

The decision of credit unions in the United States to adopt transactional web-based services is consistent with profit-maximization behavior. Credit unions adopt transactional internet banking services when they provide a higher proportion of consumer loans and when there is increased competition from other financial institutions. They adopt transactional internet banking to attract new customers. The larger the credit union the higher the probability of adoption of transactional internet banking. The probability of adoption of transactional banking is directly related to credit unions’ efficiency and indirectly related to loan delinquencies. We also find that the probability of credit unions offering transactional internet banking is positively related to the percentage of the young population in the counties where credit unions are located.

Factors influencing Internet banking adoption in South African rural areas

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.

The effect of institutional trust on internet banking acceptance: Perspectives of South African banking retail customers

Transactions carried out in the uncertain and impersonal conditions of the Internet require substantial levels of trust. Obtaining customers’ trust is therefore imperative to cultivating and nurturing long-lasting and profitable customer-firm relationships in online environments. Surprisingly however, there is currently a dearth of research on the effects of trust on customers’ acceptance of e-commerce in Africa. This paper investigates the effects of the components of institutional trust on perceptions of ease of use and usefulness, as well as attitudes towards use on customers’ intentions to use Internet banking services. An integrated research model based on the Technology Acceptance Model (TAM) was built and empirically tested using data obtained from 390 retail banking customers in South Africa. The results show that the proposed model possesses high explanatory capabilities as it could explain 61 per cent of the variance in Internet banking use intentions. The study results further show that situational normality is neither a salient determinant of customers’ attitudes towards use of internet banking nor their use intention, whereas structural assurance is. By examining the effects of institutional trust on the TAM’s variables, especially in a developing African country, this study does not only provide insights for managers in their efforts to achieve rapid adoption of Internet banking, but also contributes to the literature on the topic.

Extending the UTAUT model to understand the customers’ acceptance and use of internet banking in Lebanon

Purpose A number of studies have shown that internet banking (IB) implementation is not only determined by banks or government support, but also by perceptions and experience of IB users. IB studies have showed encouraging results from academics in developed countries. Yet little is known about the user adoption of IB in Lebanon. The purpose of this paper is to investigate the factors that may hinder or facilitate the acceptance and usage of IB in Lebanon. Design/methodology/approach A conceptual framework was developed through extending the unified theory of acceptance and use of technology (UTAUT) by incorporating two additional factors namely; perceived credibility (PC) and task-technology fit (TTF). A quantitative approach based on cross-sectional survey was used to collect data from 408 IB consumers. Data were analysed using structural equation modelling based on AMOS 20.0. Findings The results of the structural path revealed that performance expectancy (PE), social influence, PC and TTF to be significant predictors in influencing customers’ behavioural intention (BI) to use IB and explained 61 per cent of its variance, with PE was found the strongest antecedent of BI. Contrary to the UTAUT, the effect of effort expectancy on BI was insignificant. In addition, both BI and facilitating conditions were found to affect the actual usage behaviour and explained 64 per cent of its variance Practical implications This study would be helpful for bank managers and policy makers to explain the currently relatively low penetration rate of IB in formulating strategies to encourage the adoption and acceptance of IB by Lebanese customers, where IB is still considered an innovation. Originality/value This study is the first research that extend the UTAUT by incorporating two additional factors namely; PC and TTF to study the IB in the Lebanese context. This study contributes to the research on computer technology usage by looking at IB adoption and incorporation into the lives of customers via the BI to use and actual usage of IB in Lebanon.

Status of Internet Banking Adoption among Customers: A Case from India

The present attempt has made an effort to analyze the adoption pattern of internet banking among banking customers in India. To serve the purpose, primary research has been conducted and the responses have been collected from the banking customers residing at 12 different cities in India. The results have depicted that although the customers in India are using internet services widely yet the said services are not being used optimally for all the intended purposes. Further, it has also been found that internet banking services are not being rated very much effective on the dimensions, namely, safety & security and customization. Based on the instances found in the present composition, various suggestions have been made which will enable banks to deeply penetrate internet banking services among the customers in India.

Factors Influencing Internet Banking Adoption

As research on this topic is increasing, we analyzed consumer Internet banking adoption, with a particular focus on privacy, trust, and security based on an analysis of 670 responses to a survey. The results showed that prospective users' privacy concerns, particularly the concerns of those who were more socially aware, were affected by their perception of online banking security vulnerability. The results corroborate those reported in previous research demonstrating the importance of consumer perception of a bank's reputation and similarity to a related entity in creating trust. On the other hand, the results indicate that respondents were not affected by perceived size of the institution, and that privacy concerns did not have an adverse effect on prospective users' decision to adopt Internet banking.

An analysis of business’ acceptance of internet banking: an integration of e-trust to the TAM

Purpose The purpose of this research is to provide insights into the determinants of businesses’ internet banking acceptance. It attempts to address a research need for extending the technology acceptance model (TAM) by adding contextual variables. As trust has never failed to be a significant predictor in e-commerce research, this study proposes to integrate trust into the TAM to get a better understanding of business e-banking adoption. Design/methodology/approach A research model reflecting the effect of e-trust dimensions on TAM constructs is proposed. Based on relevant literature, a questionnaire was designed and administrated to 102 business managers through a Web survey. A structural modelling analysis was applied. Findings The results confirm the dimensions and relations of the TAM. Moreover, two main trust dimensions – integrity and credibility – positively influence perceived usefulness and exert both a direct and an indirect positive effect on attitude towards business’ internet banking adoption and behavioural intention. Practical implications The managerial implications of the study are that Tunisian banks should consider influencing internet banking behaviour not only by developing ease of use and usefulness beliefs, but also by promoting professional credibility and integrity. They should, also, try to attract business users by focusing on and communicating the integrity and the credibility of the bank and highlight the ways in which these concerns have been ensured. Originality/value This study supplies the valuable integration of trust to the TAM. It reveals that extended TAM could be used to provide a solid theoretical foundation of business’ acceptance of internet banking. In this study, trust construct is measured through a multidimensional scale including four dimensions (benevolence, credibility, integrity and orientation to resolve problems). Moreover, this study focused on an emergent country, Tunisia, whereas most studies in the literature concentrate on research cases of developed countries.

Internet Banking Challenges Among Customers in Selangor, Malaysia

Internet banking has been established a long time ago. All financial institutions particularly in Malaysia have developed secured online banking portals in line with the current trend of the industry. However, customer’s acceptance towards internet banking is still a widely debatable issue. This study aims to investigate if factors such as security, price, perceived ease of use and customer resistance to change influences customers adoption of internet banking services. Questionnaire survey approach for data collection was adopted in this study. The responses of 120 respondents who visited bank branches in Kota Damansara area were collected using convenience sampling method. The results of this study showed that hypotheses pertaining to security, price and perceived ease of use were supported but customer resistance to change was not supported. As compared to other factors, perceived ease of use is the strongest factor that influences the adoption of internet banking services, followed by price, customer resistance to change and security. The result also revealed that young adults are more likely to adopt internet banking. There are several limitations in this study that needs to be considered. First, the scope of this study was limited to the banking outlets in a particular area, which was Kota Damansara, Selangor and not Malaysia as a whole. Second, the outcome that was obtained from the questionnaires may not be accurate because some respondents did not answer the questionnaire seriously. Furthermore, this study only involved a small number of respondents due to time constrain and the study only included the adopters of internet banking services and excluded the non-adopters. Last but not least, the factors chosen for this research may not cover all possible factors that influences customer’s adoption of internet banking services. The findings presented in this research can be of assistance to customers especially those non-adopters of internet banking by providing them a deeper understanding of internet banking services and it would also help banks to identify the customer’s perception and the level of customer’s satisfaction towards internet banking services.

Assessing the determinants of internet banking adoption intentions: A social cognitive theory perspective

Internet banking adoption is one area that has received attention from scholars. The extant studies have mainly used technology acceptance models and behavioural theories which do not account for changes in human behaviour. This study seeks to ascertain the determinants of Internet banking adoption intentions using the social cognitive theory, which accounts for changes in human behaviour. The study selected the sample from bank customers in Ghana through an intercept approach using structured questionnaires. A two stage-approach of confirmatory factor analysis and a structural equation modelling were used in analysing the data. The findings show that websites' social feature, trust, compatibility with lifestyle and online customer services have a significant effect on customers' intentions to adopt Internet banking. However, ease of use did not have a significant relationship with customers' intentions to adopt Internet banking. The significance of the study as well as recommendations for theory, practice and future studies have been discussed.

Fatores de influência na adoção do internet banking por clientes bancários da terceira idade

<p>O objetivo principal desta pesquisa é investigar o comportamento do cliente da melhor idade em relação à adoção do <em>Internet Banking</em>. Baseado no modelo teórico de adoção entre não usuários do <em>Internet Banking, </em>proposto por Hernandez e Mazzon (2008), este trabalho pretende adaptar e analisar a aderência do mesmo em um segmento único, a população da melhor idade, diferente dos autores que analisaram o modelo estrutural em um contexto amplo. Para tal buscou-se amparo na literatura pertinente, a qual busca propor um modelo específico, a partir do modelo dos autores, que mensura as relações dos constructos: Vantagem relativa, observabilidade, demonstrabilidade, facilidade de utilização, testagem, imagem, normas subjetivas, estilo de vida e controle comportamental percebido. Para tanto, foi realizado um <em>survey</em> com 300 correntistas bancários com mais de 55 anos de idade e que não vivenciaram a experiência de utilização do <em>Internet Banking</em>. O modelo foi testado por meio de Modelagem de Equações Estruturais. Os resultados apontaram que o modelo teve aderência na amostra pesquisada, no total de 9 hipóteses testadas 5 foram aceitas e 4 descartadas. Para a amostra, o estilo de vida foi o constructo que apresentou maior impacto sobre a intenção comportamental e o menor foi a vantagem relativa. </p>

ACTIVE DRIVERS OF ADOPTION OF INTERNET BANKING

Application of internet by banking sector in India has changed the definition of banking completely. The management of different banks has been making concrete efforts to facilitate the acceptance of i-banking by bringing out its benefits to the customers. This paper identifies the active factors that influence customers intention regarding use of internet banking in Himachal Pradesh Data was collected from a sample of 120 respondents through a well structured questionnaire. The data was collected from Government employees of Shimla district of Himachal Pradesh by asking close ended questions regarding their attitude towards i-banking and their future intention about its use . For analysing and interpreting data in the present study, basic statistical tools, chi-square test (test of independence) and logistical regression analysis was used with the help of SPSS 16.0 version. Out of seven factors i.e., perceived risk, perceived usefulness, perceived quality of service, Perceived cost, Perceived ease of use, trust and awareness, three significant factors i.e., perceived risk, perceived usefulness and perceived quality of service have been identified that actively influence future adoption intention to adopt internet banking . Further the study exhibited that perceived usefulness and perceived quality of service positively influence the intention to adopt i-banking while perceived risk negatively affect the future adoption intention of i-banking. This model has the overall predictability of classifying 76.7 % cases correctly and exhibited that 87.2 % customers are classified for adopting i-banking service whereas 57.1 % customers for not having intention to use it in future

Modern Forms of Bank Service in Albania

Albanian banks are currently implementing e-banking. Banks that offer service via this channel claim that it reduces costs and makes them more competitive. However, many corporate consumers are not highly enthusiastic about Internet banking. An understanding of why corporate customers do not accept Internet banking can assist banks to implement this self-service technology more efficiently. In-depth qualitative interviews with Albanian firms suggest that security of the internet is a major factor inhibiting wider adoption. Those already using Internet banking seem to have more confidence that the system is reliable,whereas non-users are much more service conscious,and do not trust financial transactions made via Internet channels. Non-internet banking users tend to have more negative management attitudes toward adoption and are more likely to claim lack of resources. Legal support is also a major barrier to Internet banking adoption for corporate customers.

Predicting Internet banking adoption in India: a perceived risk perspective

The emergence of Internet banking has transformed the banking systems across the globe. As a channel to market, Internet banking allows geographical constraints to be overcome by offering various products and services at lower customer costs. An understanding of the factors influencing customer adoption of Internet banking is both relevant and timely. This study integrates technology acceptance model and perceived risk theory in understanding Internet banking acceptance among Indian bank account holders. Specifically, this study categorizes perceived risk as external risk and internal risk, and examines its influence on customer beliefs and adoption of Internet banking. Using two-step predictive analytics of structural equation modeling and artificial neural network analysis, the 270 responses reveal that both external risk and internal risk inhibit customer acceptance of Internet banking. More importantly, neural network analysis reveals that perceived ease of use and external risk are two important factors determining how well Internet banking is accepted by customers. The implications of the study findings and future research directions are presented.

Factors influencing academic use of internet banking services: An empirical study

This study explores factors influencing the adoption of Internet banking. Based on the literature and the unified theory of acceptance and use of technology (UTAUT) model, six constructs which influence academics’ usage of and behavioural intention to adopt Internet banking were identified: performance expectancy, effort expectancy, facilitating conditions, social influence, perceived risk and trust. Data was collected from 272 academics through a survey questionnaire, and correlations and regression were used to analyse the relationships. The results indicate that, while performance expectancy, effort expectancy and facilitating conditions had a positive association with academics’ Internet banking usage, it was not possible to find support for a positive association for social influence with academics’ Internet banking usage. Secondly, while trust had a positive association with academics’ behavioural intention to use Internet banking, the null hypothesis that perceived risk has no association with intention to use Internet banking could not be rejected. Facilitating conditions is the most influential factor explaining the usage of Internet banking. Implications from these findings may help banking institutions to structure their service model tactically for broader Internet banking usage and adoption.