Internet Banking Adoption Research Articles

Determinants of Internet Banking Adoption among Customers of Commercial Banks: An Empirical Study in the Jordanian Banking Sector

<p>The study aimed at investigating the adoption of Internet banking by customers of Jordanian commercial banks, the barriers restraining its growth, and the solutions to some of the main hindrances that face this innovative technology. A sample of 476 customers having accounts in thirteen local commercial banks and using Internet banking was randomly selected. The self-administered questionnaire relying on a 5-point scale was used to solicit the primary data. The factor analysis-varimax rotation was used to determine the dimensions of the study items whereas the simple regression was employed to determine the relative influence of perceived privacy and security, perceived ease of use, service quality, customer trust, and customer feedback on Internet banking adoption. All the independent variables have significant impacts on Internet banking adoption whilst the best predictor of the adoption is accounted for the website quality followed by customer trust. However, the adoption rate is low and is tracked mainly by customers of high education levels and high ability in using computer applications and internet experiences. Also, the study provides some recommendations and future research to resolve the obstacles facing Internet banking adoption by customers of commercial banks in Jordan.</p>

Integrating 'Tech and Touch' to Achieve Widespread Internet Banking Acceptance in Asian Cultures: The Case of Thailand

This research explores bank and corporate customer views on customer satisfaction with interpersonal and Internet channels within the banking sector in Thailand, and examines the concept of integration to blend the two channels rather than operating them as separate alternatives. Qualitative in-depth interviews with top management of leading commercial banks and with financial officers of large corporate customers of these banks confirmed that corporate customers still prefer personal contact most of the time, although they find the Internet channel useful for some things. Questionnaire survey with customers results indicate that an integrated Internet service channel can be an attractive new option for banks and their corporate customers. Thai banks, however, are following worldwide trends by offering Internet banking as a separate service channel. The results suggest that even though Integration can enhance customer satisfaction with both Internet banking and interpersonal service encounters, it rather decrease both dissatisfaction. This study concludes that the corporate customers, who are more likely to use Internet banking services, would still prefer to switch freely back and forth between channels without the need for personal contact. However, the corporate customers who are more likely to use face-to-face services still prefer personal contact. Therefore, the integration of interpersonal service channel with Internet banking service channel is an important consideration in terms of enhancing customer satisfaction. The overall interpersonal satisfaction can enhance customer loyalty. However, the moderating effect of Integration weakens the relationship between overall interpersonal satisfaction and customer loyalty. It might be because if customers widely adopt Internet banking services, when they face the problems with bank staff, they may switch to use Internet banking services. Therefore, the strong relationship with the customers can be reduced, which may lead to lower customer loyalty.

Impact of Internet Banking on Customer Satisfaction in Private and Public Sector Banks

This is an exploratory research paper which discussed the impact of various Internet banking (IB) services on the overall satisfaction levels of the banking customers. With the help of forward stepwise regression, we explained how various variables both negatively and positively influenced customers' satisfaction with Internet banking. Data were collected from 500 respondents (250 from private sector banks and 250 from public sector banks) in India (Delhi-NCR), constituting a 65% response rate. The application of this analysis revealed that customers wanted the private sector banks to improve upon the features like quality of service, frequency of reminder given for password change, safety, privacy of ID and password, and proper entering of the details in the bank registers. In case of the public sector banks, customers had different sets of concerns - like they were much worried about the lack of development in rules and regulation of E- banking as well as the poor regulatory framework in Internet banking. However, security issues aroused a common concern from the customers in case of both sectors of banks. The results also showed that the customers were ready to adopt Internet banking provided they were given necessary guidelines and constant built up of trust.

Statistical Analysis of Internet Banking Usage with Logistic Regression

Internet banking is an important phenomenon in the contemporary banking industry. The purpose of this paper is to analyze the characteristics of internet banking users in Northern Cyprus. 483 respondents were surveyed. Logistic regression was used to evaluate the impact of age, gender, income, marital status, education, profession, comfort level with computers and previous experience of shopping online on the likelihood of people using internet banking. The results indicate that 56-65 year olds were less likely to adopt internet banking than 18-25 year olds. The odds of adopting internet banking were higher for male respondents compared to females. Married individuals were less likely to adopt internet banking than single respondents were. The likelihood of adopting internet banking rose with increasing levels of income. Respondents with master's or PhD degrees were more likely to adopt internet banking compared to primary and secondary school graduates. Respondents who have previously shopped online and have a high comfort level with computers had a greater tendency towards adopting internet banking. Sole proprietors, public sector workers, private sector workers and students were less likely to adopt internet banking than banking personnel.

Bank Service Quality, Mobile Connectivity and Adoption of Internet Banking Among Selected University Students in Oyo State Nigeria

Bank Service Quality, Mobile Connectivity and Adoption of Internet Banking Among Selected University Students in Oyo State Nigeria

Empirical Determinants of Consumerss Uptake of Electronic Banking in Selected States of Nigeria

Financial institutions have been adopting internet banking since the mid-90s, predominantly due to lower operating costs associated with electronic banking and pressure from non-banks interested in entering the electronic banking market. In addition, customers utilizing electronic banking facilities are increasing. This is due to the cost savings associated with transactions over the electronic platform. Internet banking enables speedy transactions, access, time and money savings through providing free paper, and complete and up-to-date transactions. The competitive landscape of financial institutions is shifting as internet banking is no longer a competitive advantage but a competitive necessity for banks all over the world. While previous research works dwelt on wide range of issues relating to electronic banking issues, unfortunately, there is little empirical research on the effect of electronic channels on consumer’s buying behaviour and banking channel preferences in Nigeria as a developing economy. This study examined consumers’ decision-making between electronic banking and non-electronic banking in Nigeria. The research utilized the consumer decision making process to identify factors that consumers use when deciding between electronic banking and non-electronic banking services. These factors include but not limited to service quality dimensions, service product characteristics, perceived risk factors, user skill factors, and price factors. The demographic variables include age, gender, marital status, ethnic background, educational qualification, employment, and income. Findings revealed a correlation between most of the above listed factors as some of the reasons for the poor adoption of electronic banking services in Nigeria as a developing economy.

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.

SECURITY, RISK, AND TRUST IN INDIVIDUALS’ INTERNET BANKING ADOPTION: AN INTEGRATED MODEL

The fact that trust has a specific influence upon individuals’ adoption of internet banking has been proven in previous research. However, only few cues about the related evaluation of trust in the online environment are provided and the definition of trust is still ambiguous. Therefore, an integrated SRT (Security-Risk-Trust) model is proposed in this research to explain (1) the relationships among trust and the other highly relevant factors, perceived security and perceived risk; as well as (2) the effects of the above three factors on individuals’ adoption of internet banking. An empirical study is accordingly conducted and the data comes from three universities in north Taiwan, and includes 188 students and faculty. Two results are obtained: first is that perceived security is an important antecedent of trust and perceived risk; second is that perceived security has both direct and indirect effects upon individuals’ adoption of internet banking. Hence, we suggest that the management of internet banking should put more emphasis on implementing novel information security mechanisms and marketing methods to increase individuals’ perceived security, which is crucial to their internet banking adoption. To cite this document: Chorng-Shyong Ong and Yi-Luen Lin, Security, risk, and trust in individuals’ internet banking adoption: An integrated model, International Journal of Electronic Commerce Studies, Vol.6, No.2, pp.343-356, 2015. Permanent link to this document: http://dx.doi.org/10.7903/ijecs.1428

The interplay of counter-conformity motivation, social influence, and trust in customers' intention to adopt Internet banking services: The case of an emerging country

The aim of this paper is to shed light on the roles of counter-conformity motivation, social influence, and trust in explaining customers' intention to adopt Internet banking services. Data is collected from 245 respondents and analyzed using SmartPLS 2.0 M3. Results show that the intention to adopt Internet banking is mainly influenced by trust in the Internet banking services, followed by customers' counter-conformity motivation and performance expectancy. Social influence and trust in the physical bank, however, have indirect impacts on customers’ intention to adopt Internet banking. Effort expectancy has no effect on it.

Understanding customer perceptions of internet banking: the case of the UK

Purpose – Existing work on internet banking has provided substantial knowledge of the benefits and economic impacts of internet banking from the bank’s perspective. However, internet banking provides advantages for customers as well as the banking industry. The purpose of this paper is to investigate customer perceptions of internet banking in the UK with the goal of providing a comprehensive understanding of British internet banking. Design/methodology/approach – In order to provide the detailed understanding of customers’ perceptions of internet banking, a qualitative study was conducted. The primary method of data collection were 25 interviews. To provide triangulation and increase reliability, various documents and secondary data analyses about internet banking in the UK were also used to supplement the analysis. Findings – The results indicate that money transfers and bill payment are the most popular facilities with UK internet banking adopters. More importantly, security is the most important factor affecting the rate of internet banking adoption in the UK. To resolve customers’ security concerns about internet banking, some banks have introduced technologies such as card readers to avoid online fraud. In addition, the authors also found that customers are highly satisfied with internet banking. Research limitations/implications – The qualitative nature of the study meant that in-depth interviews with a relatively small sample were the most appropriate method to address the research question. Future studies with larger, more representative sample sizes are encouraged to investigate how the findings can be generalized to larger populations. In addition, due to the popularity of social media, future studies are also advised to examine how they can influence customers’ perceptions of internet banking and boost its adoption rate. Originality/value – This paper investigates current perceptions of internet banking in the UK from the customers’ perspective. Therefore, the findings of this study complement with existing work that focusses more on the bank’s perspective to present a comprehensive understanding of this topic.

Online banking adoption

Purpose – The study considers a five-factor model toward online banking adoption in the context of banking customers in India and validates the proposed model. In addition, the authors consider the impact of validated factors on overall satisfaction of customers. Design/methodology/approach – A five-factor online banking adoption model has been tested for reliability and validity by confirmatory factor analysis. For determining contribution of factors toward overall satisfaction level of banking customers structural equation modeling has been adopted. Four explanatory variables have been used to assess the overall satisfaction level of online banking users. A structured questionnaire incorporating variables identified from literature has been used as survey instrument for the study. Final respondent sample was 280 banking customers. Findings – Trust, Usage Constraint, Ease of Use, Accessibility and Intention to Use as reliable and valid factors determining internet banking adoption among customers in India. Accessibility, Usage Constraints, Intention to Use portrayed strong and significant relationship with overall customer satisfaction. Trust and Ease of Use are relatively weaker and insignificant contributors toward overall customer satisfaction. Originality/value – The existing studies in the context of e-banking in general and online banking in particular have been majorly confined to proposing key drivers toward adoption of such alternate banking mediums. By providing an insight towards satisfaction level of customers adopting online banking the proposed model attempts to fill this gap. As the study relates to banking customers in India, findings will be of particular value to domestic and foreign banking entities looking to leverage technology as a tool to attain stronghold with an emerging economic set-up.

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.

Predicting determinants of Internet banking adoption

Purpose – The purpose of this paper is to explore the main determinants of Internet banking users on the basis of literature of technology acceptance model (TAM). Understanding and predicting main determinants of Internet banking is an important issue for banking industry and users. Design/methodology/approach – Service quality and trust were incorporated in the TAM together with demographic variables. The data were collected using Google Docs from 110 Omani Internet banking users. A two-staged regression-neural network model was applied to understand and predict Internet banking adoption. Findings – The results obtained from multiple linear regression model were compared with the results from neural network model to predict Internet banking adoption and the performance of latter model was found to superior. The neural network model was able to capture relative importance of all independent variables, service quality, trust, perceived usefulness, perceived ease of use, attitude and demographic variables, whereas perceived ease of use and demographic variables were not significant predictors of Internet banking adoption as per the regression model. Practical implications – This study provides useful insights with regard to development of Internet banking systems to banking professionals and information systems researchers in Oman and similar emerging economies. Originality/value – This study is probably the first attempt to model Internet banking adoption in Gulf Cooperation Council using a predictive rather than explanatory focus. The majority of studies in Internet banking adoption in Oman and elsewhere usually utilize modeling methods suited for explanatory purposes.

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 diffusion: A country-level analysis

In the last decade, Internet banking technology has made remarkable progress. However, there is a huge disparity across different nations all over the world in the diffusion of Internet banking services. This leads to the research question of this study: why different countries exhibit different levels of Internet banking adoption? Previous studies provide limited insight as they were mostly conducted at the individual user level with single-country samples. At the country level, this study proposes an Internet banking diffusion model that examines the impact of economical, technological and cultural factors on Internet banking diffusion. The hypothesized relationships in the research model were statistically tested with the secondary data collected from a sample of 33 European countries. The results indicate that the effects of socio-economic and technology-related factors on Internet banking diffusion are fully mediated by Internet access. Furthermore, the findings suggest that national culture is an important moderator as it make differences in Internet banking diffusion as well as Internet access across different country groups. The country-level analysis contributes to the advancement of Internet banking theory and practice, and provides some useful insights to researchers, practitioners and policy makers on how to enhance Internet banking diffusion.

Factors affecting adoption of internet banking in Jordan

Purpose– The purpose of this paper is to investigate the Jordanian accountant’s behavioral intention of using the Internet Banking services to focus on the perceptions of the users in terms of usefulness and ease of use of Internet Banking, besides the privacy of using this dynamic technology for meeting their banking requirements.Design/methodology/approach– The questionnaire on Internet Banking was specifically designed and used to survey a randomly selected sample of Jordanian accountants from the web site of the Jordan Association of Certified Public Accountants and 298 usable responses were obtained. The data were analyzed using SPSS and AMOS (structural equation modeling).Findings– The results of this analysis support the extended Technology Acceptance Model (TAM) as well as confirm its robustness for predicting the behavioral intention of the adoption of Internet Banking by the Jordanian chartered accountants.Research limitations/implications– During a period when quick changes are taking place, new technologies are entering the market every day, resulting in a cross-sectional study which cannot be generalized perfectly.Practical implications– The findings offered useful information for the bank management in order to formulate marketing strategies for Internet Banking.Originality/value– This study has contributed to the literature available as it formulated and validated an extended TAM for predicting the adoption of Internet Banking.

Consumer adoption of Internet banking in Jordan: Examining the role of hedonic motivation, habit, self-efficacy and trust

Despite the rapid growth of Internet banking (IB), customers in developing countries still hesitate to adopt this technology and its use in the Middle East remains low. This study aims to identify and examine the factors that predict behavioural intention and adoption of IB in Jordan. Four factors – hedonic motivation, habit, self-efficacy and trust – are proposed in a conceptual model. Data was collected by means of a survey with bank customers in Jordan. Structural equation modelling (SEM) was used to analyse the data. The results strongly supported the conceptual model. Further, hedonic motivation, habit, self-efficacy and trust were all confirmed to have a significant influence on behavioural intention. Trust was found to be strongly predicted by both hedonic motivation and self-efficacy. This study provides both academics and practitioners with an insight into the factors that can be used to encourage customer adoption of IB specifically in a Middle East context.

Intention to adopt internet banking in an emerging economy: a perspective of Indian youth

Purpose – The purpose of this paper is to understand the consumer’s intention toward internet banking adoption in Indian context by combining two theories; theory of planned behavior (TPB), technology acceptance model (TAM) and an additional construct, i.e. perceived risk. Design/methodology/approach – A questionnaire based survey was conducted to collect responses from young consumers (210 usable responses). Data were analyzed using structural equation modeling to evaluate the strength of relationship. Findings – The result shows that perceived usefulness, attitude, subjective norm and perceived behavioral control significantly influences the consumer’s intention to adopt internet banking whereas perceived risk failed to show any significant influence over intention to adopt internet banking. Research limitations/implications – The study is limited to young consumers (i.e. professional students) only. Further, the study concerns itself with consumer’s intention not actual behavior. Practical implications – The finding will be useful for bank officials for devising strategies and policies related to internet banking in the Indian scenario. Originality/value – The paper is one of the initial attempts in Indian context to understand the consumer’s intention to adopt internet banking by combining TPB and TAM theories.

Selection of appropriate electronic banking channel alternative

Purpose – The purpose of this paper is to examine the important criteria responsible for the adoption of different electronic banking channel (EBC) alternatives in Indian perspective. It also evaluates the intensity of the various criteria, namely demographics, technological factors, service components and intention to use in determining the overall priorities of EBC. Design/methodology/approach – Data were collected from 110 respondents using pairwise comparison-based survey instrument. The collective data was analyzed using analytical hierarchy process and priorities of different EBC were computed. Findings – ATM was found out to be the most preferred EBC alternative, followed by internet banking (IB) and mobile banking. Awareness, self-efficacy, ease of use, usefulness and security were the criteria responsible for making ATM, the most preferred channel. Practical implications – This paper imparts a better understanding of customers’ preferences among different EBC alternatives. It also explores the relationship between different criteria and sub-criteria based on the data collected from both the parties involved in electronic banking, i.e. customers and bankers. This research would be helpful to guide the strategy maker of electronic banking, so that penetration rate may improve in India. This would also give an idea which factor should be given more emphases, while offering new electronic banking services. Considering same method, further detailed research on specific EBC is required. Similarly, studies of different demographic area may consider for robustness of concept. Originality/value – In the past research work, many researchers talked about the specific EBC and now it is needed to find the gap between all channels selection attitude, considering same parameters. Through pairwise comparison, priorities of different criteria and sub-criteria have been evaluated. This also leads to the selection of most preferred EBC. The results would also be useful in enhancing the customer base, thus reducing the barriers in the adoption of IB and mobile banking.

Internet banking acceptance in the United States and Malaysia: a cross-cultural examination

Purpose – The purpose of this paper is to investigate the cultural differences in internet banking adoption between the USA and Malaysia. It aims to provide marketing recommendations based on specific cultural dimensions to promote internet banking. Design/methodology/approach – With four added variables (attitude towards use, perceived credibility, self-efficacy, and anxiety), the Unified Theory of Acceptance and Use of Technology model was used. A questionnaire was developed based on the research model and distributed to 1,050 internet banking users from two countries. Structural equation modelling (SEM) was applied to 666 valid questionnaires to test the research hypotheses. Findings – Results show that due to cultural differences, global consumers have different internet banking adoption patterns. Consumers in the USA have a more positive attitude towards use. Moreover, perceived credibility plays an important role in influencing internet banking in the USA. On the other hand, performance expectancy has a direct influence on internet banking adoption in Malaysia. Cultural dimensions such as individualism/collectivism, power distance, uncertainty avoidance, monochronic/polychromic, and high context/low context were used to explain these findings. Based on the findings, marketing recommendations that help promote internet banking in both countries were provided. Originality/value – This is the one of the pioneer studies that highlights the importance of cultural differences in promoting internet banking services. It contributes to the literature by developing and testing a comprehensive research model using SEM.