Internet Banking Users Research Articles

Internet banking adoption in India

Purpose – The purpose of this paper is to understand the factors influencing adoption of internet banking in urban India. Design/methodology/approach – A model has been proposed based on the technology acceptance model (TAM). The proposed model is referred to as extended TAM and is better suited to identify and quantify the important factors that influence adoption of internet banking technology in India. Primary data relating to the variables affecting technology adoption and demographic profile are collected using a questionnaire survey. Data were collected from 344 individuals who are either current/prospective internet banking users. Structural equation modeling was used to identify the important factors affecting internet banking technology adoption. Findings – The factors of perceived usefulness, perceived ease of use, social influence, awareness, quality of internet connection and computer self-efficacy are primary determinants of the attitude toward the use of internet banking in urban India. The attitude toward the use of internet banking can be used to predict the intention to use internet banking systems by users. Practical implications – This research enables internet banking service providers in urban India to design new service offerings or modify current service offerings to achieve higher adoption rates in internet banking. Originality/value – The paper investigates the adoption of internet technologies by banking users by proposing an extended TAM model that is more appropriate to capture the issues related to adoption in urban India. The paper is of value to researchers in the area of technology adoption and banking service providers in urban India.

Internet Banking Adoption and Usage in Albania: An Empirical Study

The banking industry has undergone significant operational changes over the last decade, thanks to advances in information technology. The rapid diffusion of the Internet, in particular, has revolutionized the delivery channels used by the financial services industry. According to Central Bank of Albania, at the end of 2012, 11 banks in Albania provide internet banking services. Internet banking was the only home banking service during period 2005-2010. The number and value of internet banking transactions has increased from 2005 to 2012. The aim of this paper is to study the Internet banking usage by individual clients of banks in Albania. The objectives of this research are: to identify Internet banking services that banks’ clients use and to identify the socio-demographic factors that influence the use of Internet banking. The target population was comprised by individuals that have a bank account. A questionnaire was distributed to banks’ clients during November 2013. The hypothesis to be tested was: there exist any relationship between socio-demographic characteristics of the client (age, gender, residence, marital status, occupation, education level and monthly income level) and internet banking usage. To test the hypothesis chi-square test and logistic regression model was used. The results of statistical analysis indicated that banks’ clients with high education level (university and master), and those with monthly income higher than ALL 90,000 were more likely to use Internet banking. The findings of this study provide useful information for planning Internet banking promotion strategies, focusing to clients with secondary education and with average monthly income. DOI: 10.5901/jesr.2014.v4n4p460

Multilevel and multidimensional scale for online trust

This paper examines the nature of the construct of consumers' trust toward the electronic channel of their financial institution. Through a study of a total of 372 individual users of Internet banking in Spain, we have managed to develop a third-order measuring instrument that integrates a total of seven dimensions. The exploratory and confirmatory factor analyses were used to test the validation and reliability of the proposed scale. Findings provide useful information to professionals who seek to identify how customer's trust is formed in the online channel and in the financial sector.

¬ATM, Internet Banking and Mobile Banking Services in a Digital Environment: The Egyptian Banking Industry

E-services are revolutionizing the way business is conducted in banking industry. Banks are trying to provide a variety of self-service channels such as Automated Teller Machines (ATM,) Internet banking and Mobile Banking (m-banking) in order to increase customer convenience, reduce costs and maintain profitability. This paper proposes a framework to explore and compare the dimensions and barriers that affect consumer’s intention to use or adopt different self-service banking technologies in the Egyptian context. An empirical study on bank customers was conducted using a quantitative approach, where structured questionnaires were distributed over 1500 respondents that were divided into three groups in order to investigate the usage of ATM, Internet banking and m-banking. Data collected, was statistically analyzed using Chi square test, frequencies and cross tabulations. The results indicate that the three groups differ significantly with respect to usage, value, risk, tradition and image barriers. Moreover, significant relations between decisions of adoption with Internet banking experience, level of education, type of mobile owned and mobile Internet experience were also noted.

Factors affecting to customer adoption of internet banking

This paper reports the findings of a study concerning the adoption of internet banking by investigating consumer adoption within the context of Sri Lankan banking services. The research framework was based on the extension to decomposed theory of planned behavior which mainly includes attitude (including innovation characteristics such as relative advantage, compatibility, complexity, trialability and risk), subjective norms, and perceived behavioral control to assess internet banking adoption behavior. Online questionnaire survey was conducted to gather the data and 108 complete responses were gathered from random banking customers who were internet users from Colombo and Gampaha district. Descriptive analysis was done to provide strength to the research study which showed that even though considerable people were aware about internet banking, most of them were resistance to adopt internet banking. Spearman’s rank correlation was used to examine relationship of eleven hypotheses with actual internet banking usage. Results revealed that attitudinal and perceived behavioral control factors rather than social influence (subjective norms) plays a significant role in influencing adoption of internet banking. In particular relative advantage, compatibility with values, internet skills, trialability, risk, confidence of using such services (self-efficacy), and technology support found to influence the adoption of internet banking. Conclusion of the research study implied that banks have to majorly influence the internet banking adoption through ‘pull strategies’.DOI: http://dx.doi.org/10.4038/kjm.v2i2.6551 Kelaniya Journal of Management Vol.2(2) 2013:68-87

Snapshot on Indonesia Regulation in Mobile Internet Banking Users Attitudes

Abstract. Today, there are an increasing number of people using mobile internet banking to make transactions due to their busy life. The mobile technology enable people to make transactions anytime and anywhere. This phenomena encorage banking industry to provide this service. However, in a developing country like Indonesia, there are very limited regulations governing internet transaction. Consumer knowledge on such regulation and fraud claim procedure will affect their attitude toward mobile internet banking. The purpose of this research is to investigate how the consumer perceptions toward regulation, perceived benefit, and perceived risk influence the consumer attitude toward mobile internet banking. The finding of this research will provide insights for the banking industry and enable them to devise a marketing strategy to encourage their customers to adopt mobile internet banking.

Website Design and Usage Behaviour: An Application of the UTAUT Model for Internet Banking in UK

A well designed website brings numerous benefits to firms. Some of these benefits are well established. But whatelements of the website design really matter and how do these in turn influence website usage behaviour?Adopting the Unified Theory of Acceptance and Use of Technology (UTAUT) as the theoretical foundation, wereport the findings from a survey of 316 users of internet banking; data were collected through an offlinequestionnaire developed based on the literature review and previous studies,directed to a convenience sample.Structure equation modelling, the two steps approach, starting with measurement model and then the structuralmodel was applied.We demonstrate that the technical, general content and appearance dimensions of a Web siteare the most important for users. In addition, these dimensions are significantly related to usage behaviourdirectly and indirectly through belief constructs. We also find that the impact of performance expectancy onusage behaviouris significant in predicting usage. Implications and Recommendationswere provided afterthorough discussion.

Empirical Investigation of Internet Banking Usage: The Case of Turkey

This study empirically investigates the factors impacting internet banking (IB) usage by Turkish bank customers. A unique internet banking usage model (IBUM) was developed and validated. The initial proposed model incorporated 10 factors named usefulness, ease of use, control, social influence, compatibility, risk, website features, alliance service, awareness of service and personalization that affect internet banking usage. The initial model was tested against both measurement and structural models. The results of initial model testing indicated that compatibility has the most significant effect on internet banking usage which is then followed by alliance service, usefulness, personalization and ease of use. Consequently, the initial model was modified in order to find the inter-relationships among factors. The final IBUM consists of 7 factors which are able to explain 65% of the variance in internet banking usage. Finally, the results are discussed and suggestions for future researches presented by highlighting the effects of personalization and alliance services.

Acceptance of Internet Banking Systems Among Young Users; the Effect of Technology Acceptance Model

The evolution in internet banking studies has point out the importance of fulfilling the needs of potential young internet banking users who significantly affect the level of internet banking acceptance. Young users consist of those between 15-25 years of age, and most of them are students in secondary schools and universities. Students in tertiary education are very important to internet banking providers because most of the future users of internet banking will come from this segment. As a result, understanding their behaviour towards internet banking systems is crucial. Therefore, the aim of this paper is to determine acceptance of information technology systems of internet banking among undergraduate students in Malaysia, who are regarded as potential young users in internet banking market. This research develops a technology acceptance model for internet banking system based on the modified version of Technology Acceptance Model (TAM) to examine the effects of Computer Self-Efficacy (CSE) and Perceived Usefulness (PU), Perceived Ease of use (PE) and Perceived Credibility (PC) of TAM on the Behavioural Intention (BI) to use the internet banking systems. PU and PE are the established dimensions of TAM and PC and CSE are the additional dimensions and construct which are to be included in the conceptual model. Data were obtained from 556 business and computer science and information system undergraduate students, who are pursuing their degrees in a Malaysia's public university. The result revealed that perceived usefulness (PU), perceived ease of use (PE) and perceived credibility (PC) of TAM affect respondents' behavioural intention (BI) to use the internet banking systems, suggesting that these dimensions are good determinants of potential young users' acceptance of internet banking system. PC was found to have stronger influence than PU and PE on BI. The findings unveiled that indirect relationships existed between CSE and BI through PU, PE and PC of TAM. The results of this study validated that the technology acceptance model proposed was well adopted in predicting individual acceptance of information technology systems, including internet banking system. This paper extends the understanding on how potential young users response to information technology systems from Malaysia's undergraduate students perspective.

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.

Antecedents of Customer Satisfaction In Internet Banking: Technology Acceptance Model (TAM) Redefined

In the banking sector, various electronic delivery channels are increasingly used for delivering products and services for the convenience of customers at low cost. Internet banking (IB) is one among them. IB is a product of e-commerce in the field of banking and financial services. The present study has been carried out to use the Technology Acceptance Model (TAM) from the Information Technology (IT) literature to investigate the effect of TAM variables on customer satisfaction in the internet-banking context. The model was constructed by incorporating Perceived Risk (PR) to the twin traditional TAM constructs, Perceived Ease of Use (PEOU) and Perceived Usefulness (PU). The model has been empirically validated using 406 IB users selected from the state of Kerala, India. It is found that the constructs PEOU and PU have positive effect on customer satisfaction and PR has negative effect on customer satisfaction. A profile analysis of the respondents revealed that young males, well-educated employees with a moderately high level of monthly income are the major users of IB in Kerala.

Internet shopping and internet banking in sequence: An explanatory case study

Adoption of Internet banking often follows on from usage of Internet shopping, but policies to increase Internet banking use typically ignore this ordering. This article presents a case study that underscores this sequence of Internet service adoption and identifies factors that shape the propensity to use the Internet for shopping and banking. Application of bivariate probit regression techniques to data sourced from a survey of 259 respondents in Athens, Greece, and estimation of marginal effects of the determinants of Internet banking use conditioned on the determinants of Internet shopping use illustrate that ignoring the sequence of Internet service use can lead to incorrect policy recommendations. This article contributes to the literature by theorising the underlying causal mechanisms of Internet banking adoption and presenting supporting evidence via a sequential modelling approach. We find that personal capacity is an important determinant of Internet banking use in a standard, non-sequential approach but it has no significant effect when the model is sequential. Our results suggest that policymakers should emphasise usefulness attributes of Internet banking when attempting to increase Internet banking usage by people who already use the Internet for shopping.

Factors affecting consumer's continued use of internet banking: Empirical Evidence from Australia

The goal of this study was to investigate the factors that influence consumers continued use of internet banking in Australia. Patterns of continued use of internet banking have been neglected as most of the existing studies focus on either consumer adoption or acceptance of internet banking. However, in comparison to new customer acquisition, measures of continued use of internet banking are important as it is related to a cost-effective marketing strategy aimed at retaining customers. The present study is a response to a gap in existing literature which requires the application of more integrated theory testing and the identification of factors that influence the continued use of internet banking in order of importance to consumers. The study sets out to develop a conceptual framework based on theoretical models related to the acceptance of technology and diffusion of innovations theory. The conceptual model developed encompasses technology, channel, social and value for money factors as predictors in the identification of influential factors for consumers and their continued use of internet banking. Data were collected using a cross-sectional mall intercept survey in the Western Sydney region, comprising a sample of 372 internet banking users. After testing the data for accuracy, exploratory factor analysis was performed for factor clarification on five key scales related to the use of internet banking service delivery based on technology, channel, social, value for money and continued use factors. The final components that emerged were employed in hierarchical multiple regression analyses to test the proposed framework. Value for money, channel and technology factors was found, in that order, to be influential in predicting consumers’ continued and frequent use of internet banking.

Re‐examining and empirically validating the End User Computing Satisfaction models for satisfaction measurement in the internet banking context

PurposeThe main focus of the study was to validate the End User Computing Satisfaction (EUCS) model in the context of internet banking and to determine the major factors which contribute to level of satisfaction of internet banking users in India.Design/methodology/approachA survey questionnaire was administered on internet banking users and a total of 387 responses were collected. A factor analysis on the 12 items used in the EUCS model with oblique (non‐orthogonal) rotation and five fixed factors revealed the existence of the same latent constructs hypothesized in the original EUCS model. Confirmatory Factor Analysis (CFA) was then used to test and validate the four hypothesized models for model fit.FindingsThe current study confirms the evidence found in extant literature that EUCS is a second‐order construct. In this study the factor “Format” was found to have the highest loading and the factor “Content” had the lowest factor loading among all the five latent constructs in the EUCS model for internet banking. The factor “Accuracy” had the highest mean score and the factor “Content” had the lowest mean scores indicating that bank customers were satisfied with the accuracy of the information on the banks web site but were not comparatively satisfied by the information content on the web site.Research limitations/implicationsThis study was done based on a call by Pikkarainen et al. (2006) to validate the EUCS instrument for internet banking satisfaction in different countries to enhance the generalizability of the findings. This research is limited to samples from India and results of other countries need to be considered before a generalization of the findings can be made. This study will be useful to policy makers and banks to devise strategies for increasing the use of internet banking.Originality valueThere is a myriad of literature on factors which lead to adoption of internet banking but extant literature on internet banking user satisfaction is limited particularly pertaining to banks operating in India. This study attempts to fill this gap in the literature.

Gender and Age Effect on Acceptance of Internet Banking: Cultural Comparison between United States and Malaysia

Weak marketing strategies of emphasizing the same Internet banking features in different countries have failed to accurately suit the local demands. As one percent increase in the retention of Internet banking acceptance will typically bring 18 percent reduction in operating cost (Bhattacherjee, 2001), indifference towards consumers’ adoption of Internet banking services may result in a big loss to the financial institutions. Therefore, this study is conducted to help banks mitigate the key cause of profit reduction in Internet banking industry which is an insufficient understanding of customer behaviour and preference by recommending effective strategies to help banks retain existing Internet banking customers. A questionnaire was developed based on the theoretical framework, tested in a pilot study, and finally distributed to a sample of 1,200 Internet banking users from major cities in the United States and Malaysia. Malaysian females have significantly higher behavioural intention to use Internet banking services compared to their counterparts in the United States. Young adults in the United States are more likely to be influenced by their social environment when using Internet banking services while middle-aged adults from Malaysia rank significantly higher on behavioural intention to use Internet banking services, performance expectancy, effort expectancy, facilitating conditions and attitude towards using Internet banking. The study is also the among the very few available research that attempts to discuss cultural differences of Internet banking acceptance of the United States and Malaysia by applying a combination of Hofstede (2001) and Trompenaars and Hampden-Turner (1998)'s cultural dimensions.

Acceptance of online banking information systems: an empirical case in a developing economy

This paper proposes an extended model of technology acceptance to understand potential users’ acceptance of online banking information systems (OBIS). The proposed model integrates key constructs from information systems and e-commerce acceptance research streams into the theoretical frame of the technology acceptance model. The model was tested on a sample of 353 Internet banking users in Pakistan. Using structural equation modelling with Analysis of Moment Structures software, data analysis showed considerable support for the extended hypothesised model. The results suggested that, in order of importance: perceived usefulness (PU), perceived ease of use (PEOU) and trust explained 45.7% of the variance in intended acceptance behaviour. Trust and technological self-efficacy (TSE) predicted 28.1% of the variance in PU. While in PEOU 21.8% of the variance was predicted by TSE, accessibility and terminology clarity. This study produced valuable insights into the factors that influence acceptance of OBIS by intended users and offers new ideas in understanding the acceptance of technology, especially in developing countries.

The Impacts of Service Quality and Customer Satisfaction on Customer Loyalty in Internet Banking

This study examined the relationship and the impacts of e-SQ and e-Satisfaction on e-Loyalty in internet banking. The modified version of E-SERVQUAL instrument was used to determine e-SQ for internet banking service of a commercial bank in Malaysia. Questionnaires were collected randomly from 265 internet banking users. The findings indicated that assurance-fulfillment, efficiency-system availability; privacy, contact-responsiveness and website aesthetics and guide constitute e-SQ for the internet banking service. Website aesthetics and Guide, Efficiency-System availability and Contact-Responsiveness of the internet banking e-SQ were positively affected e-Satisfaction. E-Satisfaction was positively significant to e-Loyalty. E-Satisfaction was found to partially mediate the relationship of Website aesthetics and Guide of e-SQ and customer e-Loyalty. The result highlighted that attractiveness and appearance of banks’ websites, and the information and guidance provide by the websites are important features to internet banking users. This finding reflected that in internet banking, beside the technical and functionality aspects of banks’ websites e-SQ, such as efficiency, fulfilment and system availability, the aesthetic value and proper guidance of the websites are also crucial to ensure quality of e-SQ that will lead to e-Satisfaction and e-Loyalty.

Circumstances Probing Internet Banking Users to Use Alternative Channels: Thematic Matrix Display Analysis

This study highlights the circumstances that actually probe internet banking users to switch to the use of alternative channels in performing their banking transactions within Australian context. Data obtained from 372 internet banking users was analysed by employing thematic matrix analysis technique to identify various macro and micro thematic categories in that hierarchical order of importance. Results revealed factors such as ‘unable to perform over the internet’, ‘lack of internet access’, ‘not sure of something’, ‘problem rectification’, ‘proximity to auxiliary facilities’ and ‘type of internet connectivity’ were relevant in identifying the circumstances under which they preferred to use other banking channels. The study provides important implications for the formulation of effective service delivery channel management strategies by way of implementing effective mechanisms. Moreover, the study also outlines important guidelines for practical solutions in order to reduce the impact of situational barriers thus focusing on effective customer retention strategies. With the information provided by this research, bank executives, consultants and academics will have enhanced knowledge of the service areas they need to focus on to improve customer satisfaction, retention and profitability in the financial services businesses.

Profiling internet banking users: A knowledge discovery in data mining process model based approach

Analysing datasets using data mining techniques can enhance decision making in organizations. However, to ensure that the full potential of these techniques is realised it is important that decision makers understand there are Knowledge Discovery and Data Mining (KDDM) processes that are mature enough to be adopted. This paper demonstrates the benefits of using a KDDM process to evaluate survey data for internet banking users in Jamaica which includes demographic as well as attitudinal and behavioral variables. The major benefits of following this process include the selection of a set of models, rather than a single model, which are more relevant to the business/research objectives and use of a more targeted knowledge discovery process as the data mining analyst is now directed to consider the effects the decisions in each phase will have on subsequent phases. This leads to more relevant knowledge being extracted from the data mining process.

Factors encouraging the internet banking adoption in Thailand

Although the number of internet banking users has grown rapidly in recent years, not all customers are ready to accept these banking services. It remains a challenge for the banks to figure out how to attract more customers to adopt the use of banking services via an internet channel. This study aims at examining the factors that impact the acceptance of the use of internet banking in Thailand. A total of 697 subjects participated in this study. Data were collected via both interview and survey. The findings suggest factors that banks should consider when implementing internet services, thus allowing them to design an internet service that meets the needs of their customers.