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21 – 30 of over 32000
Article
Publication date: 26 July 2012

Thanika Devi Juwaheer, Sharmila Pudaruth and Priyasha Ramdin

The purpose of this paper is to investigate the factors influencing the adoption of internet banking services in Mauritius. Drawing from the technology acceptance model, theory of…

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Abstract

Purpose

The purpose of this paper is to investigate the factors influencing the adoption of internet banking services in Mauritius. Drawing from the technology acceptance model, theory of reasoned action, theory of planned behaviour and the extensive literature on demographic profiling of internet banking users, trust and security aspects associated with adoption rate of internet banking, this paper combines various predetermined constructs in one model. The different constructs such as perceived ease of use, perceived usefulness, subjective norms, attitudes, behavioural intentions, security and trust aspects, the level of awareness on internet banking services and demographic variables such as age, income, gender and education into one integrated framework. Hence, the paper will deepen understanding of the specific factors underpinning the adoption of internet banking in Mauritius.

Design/methodology/approach

This paper reports upon the empirical findings of the customer survey on the various factors impacting on the adoption of internet banking by the questionnaire method. The Internet Banking Services Acceptance Model (IBSAM) is further validated through a survey instrument administered to 384 respondents visiting various banking institutions across the nine districts throughout Mauritius to ensure proper geographical coverage. The questionnaires were further processed and analysed with the statistical programme SPSS, by using descriptive and inferential analysis.

Findings

Data analysis showed that perceived ease of use and perceived usefulness have a direct influence on the adoption of internet banking in Mauritius. Results have also indicated that both trust and security aspects are deemed crucial factors to explaining internet banking adoption in Mauritius. Further examination of the inferential analysis highlighted that level of education and income level of respondents may be a major determinant in influencing the adoption of internet banking.

Practical implications

This research provides banking institutions with significant information on the various aspects that need to be highlighted in their banking communications strategies to increase the adoption rate of internet banking services. Banking institutions need to stress upon the benefits of internet banking services, ease to use, trust and security aspects. The ndings of the research provide valuable insights for the banking industry and also urge upon a reshaping of their e-marketing strategy in relation to internet banking services in Mauritius. The research findings revealed that secured web contents and design are key tools to increase the adoption rate of internet banking. Practical recommendations to increase web usefulness and trust, and guidelines to reduce perceived risk are also provided in the present research paper.

Originality/value

The purpose of the study is to fill up significant gaps in the literature on internet banking landscape in the context of developing countries like Mauritius. The findings are expected to be of significant use to the commercial banks and other financial institutions offering or planning to offer internet banking solutions in the near future. An understanding of the factors influencing the adoption of internet banking services is essential for marketing practitioners so as to capitalize upon the underlying benefits of internet banking and hence, offer banking customers an online experience coupled with a greater level of personalization and customization.

Details

World Journal of Science, Technology and Sustainable Development, vol. 9 no. 3
Type: Research Article
ISSN: 2042-5945

Keywords

Article
Publication date: 1 December 1999

Milind Sathye

Quantifies the factors affecting the adoption of Internet banking by Australian consumers. The sample for this survey was drawn from individual residents and business firms in…

20696

Abstract

Quantifies the factors affecting the adoption of Internet banking by Australian consumers. The sample for this survey was drawn from individual residents and business firms in Australia. Shows that security concerns and lack of awareness about Internet banking and its benefits stand out as being the obstacles to the adoption of Internet banking in Australia. Suggests some of the ways to address these impediments. Further suggests that delivery of financial services over the Internet should be a part of overall customer service and distribution strategy. These measures could help in rapid migration of customers to Internet banking, resulting in considerable savings in operating costs for banks.

Details

International Journal of Bank Marketing, vol. 17 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 11 September 2007

Hatice Jenkins

This paper aims to examine the factors affecting the adoption of internet banking services by domestic commercial banks in a sparsely populated small island.

7144

Abstract

Purpose

This paper aims to examine the factors affecting the adoption of internet banking services by domestic commercial banks in a sparsely populated small island.

Design/methodology/approach

Being one of the smallest island economies in the world, North Cyprus was chosen as a case study to explore the factors that affected the penetration of internet banking services in North Cyprus over a two year period. The managers of 23 banks operating in North Cyprus were interviewed first in 2004 and later in 2006. Furthermore, the web sites of these banks were also examined both in 2004 and in 2006 in order to measure the progress made in adopting internet banking services between these periods.

Findings

Evidence from survey studies and from banks' web sites indicated that banks in North Cyprus have been consistently moving towards providing internet banking services despite a very small potential market to share. In 2004, the majority of commercial banks claimed that the potential market was too small to adopt internet banking services in North Cyprus. Yet, in 2006 the same banks were in the process of introducing internet banking as an assurance to their customers that they would be able to maintain a competitive quality of service in the future, hence avoid losing their customers to the branches of foreign banks.

Research limitations/implications

The implication for domestic banks is that if they wish to complete with foreign banks they must embrace internet banking.

Originality/value

Contributes to the literature on internet banking services in small islands.

Details

Managing Service Quality: An International Journal, vol. 17 no. 5
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 1 May 2005

Ming‐te Lu, Chun‐hong Liu, Jiang Jing and Linjun Huang

To assess to what extent Chinese domestic banks' use of internet banking as a strategic response to the entrance of the WTO is affected by factors both external and internal to…

4710

Abstract

Purpose

To assess to what extent Chinese domestic banks' use of internet banking as a strategic response to the entrance of the WTO is affected by factors both external and internal to the banks.

Design/methodology/approach

A model depicted by a path diagram is developed to test the impact of various external and internal factors considered to have an impact on Chinese domestic banks' strategic response to the accession into the WTO. Survey questions from prior studies were adopted and modified. Structural equation analyses were used for data analysis.

Findings

The research hypothesis that the increasingly competitive conditions in the banking sector resulting from China's accession into the WTO has a significant effect on Chinese domestic banks' internet banking investment decisions was confirmed.

Research limitations/implications

The conceptual model and research instrument could be further refined. The sampling frame used could be expanded to cover all banks in the Chinese mainland.

Practical implications

Findings of the study should benefit organizations in improving their use of IT as a strategic weapon, especially for the banking industry.

Originality/value

This study is the first empirical research on internet banking in mainland China from a strategic perspective.

Details

Industrial Management & Data Systems, vol. 105 no. 4
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 14 September 2015

Mohana Shanmugam, Yen-Yao Wang, Hatem Bugshan and Nick Hajli

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

6727

Abstract

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.

Details

Journal of Enterprise Information Management, vol. 28 no. 5
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 1 September 2003

Laura Bradley and Kate Stewart

Deregulation has brought down the boundaries of the banking industry, allowing new entrants and enabling a greater degree of competition. Into this scenario arrived the Internet

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Abstract

Deregulation has brought down the boundaries of the banking industry, allowing new entrants and enabling a greater degree of competition. Into this scenario arrived the Internet – another radical technological innovation with the potential to change the structure and nature of banking. Many banks have adopted the Internet as a delivery channel (indeed, some banks have set up as Internet‐only delivery). This paper reports a Delphi study of the Internet momentum in banking. Informed by diffusion of innovation theory, the study sought to discern the key issues and to explore the future of Internet banking. The results show that Internet banking is a very important issue in retail banking. However, the Internet will contribute as part of a multi‐channel (bricks and clicks) strategy, rather than as a stand‐alone (clicks only) strategy. The developing functionality of Internet banking may enable some banks to achieve competitive advantage through delivering higher perceived customer value.

Details

Marketing Intelligence & Planning, vol. 21 no. 5
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 8 June 2012

Ankit Kesharwani and Shailendra Singh Bisht

The main purpose of this paper is to extend the technology acceptance model (TAM) in the context of internet banking adoption in India under security and privacy threat.

13768

Abstract

Purpose

The main purpose of this paper is to extend the technology acceptance model (TAM) in the context of internet banking adoption in India under security and privacy threat.

Design/methodology/approach

Keeping the TAM proposed by Davis as a theoretical basis, an extended TAM incorporating security‐ and privacy‐related issues for internet banking adoption is conceptualized. The authors have incorporated various inhibitors of internet banking which restrict the use of internet banking adoption under “perceived risk”, and also consider the role of the bank web site as a key determinant of perceived risk and of perceived ease of use in the context of internet banking services.

Findings

The paper reveals that perceived risk has a negative impact on behavioral intention of internet banking adoption and trust has a negative impact on perceived risk. A well‐designed web site was also found to be helpful in facilitating easier use and also minimizing perceived risk concerns regarding internet banking usage.

Practical implications

Financial bank institutions should give attention to the inhibitors or perceived risk factors of internet banking adoption in order to retain existing customers as well as attract new consumers. The study also suggests that banks should build a web site with features to facilitate users' assessment of internet banking services and thus minimize the perceived risk and maximize the perceived ease of internet banking services. Web‐based retailers depending on online payments would also be benefit by incorporating the elements of perceived risk and trust in their own web design and online services.

Originality/value

In addition to the traditional construct of TAM, a new construct of perceived risk has been added. The impact of web site design and trust on internet banking adoption has also been examined and shown to be significant in India in the context of internet banking adoption.

Details

International Journal of Bank Marketing, vol. 30 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Open Access
Article
Publication date: 21 October 2020

Kulondwa Safari, Aganze Bisimwa and Mugisho Buzera Armel

The purpose of this study is to investigate customers’ attitudes and intentions toward internet banking in an underdeveloped banking sector.

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Abstract

Purpose

The purpose of this study is to investigate customers’ attitudes and intentions toward internet banking in an underdeveloped banking sector.

Design/methodology/approach

The study was carried out in the Democratic Republic of the Congo. A sample of 215 respondents comprised of 112 non-users and 103 users of internet banking was selected in the city of Bukavu following a convenience sampling method and structural equation modeling was applied to test the research hypotheses.

Findings

The results show that for users of internet banking their attitudes are determined by their perceived usefulness while for non-users they are determined by their perceived usefulness and internet trust. For users of internet banking, their intentions to continue using internet banking are determined by attitudes and perceived usefulness; while for internet banking non-users, their intention to use internet banking is determined by their attitudes, their perceived web security and perceived usefulness.

Originality/value

Few research on internet banking have been done in central and sub-Saharan Africa. The present study gives new insights to assist financial institutions and researchers in understanding intentions and attitudes toward internet banking in an underdeveloped financial sector.

Details

PSU Research Review, vol. 6 no. 1
Type: Research Article
ISSN: 2399-1747

Keywords

Article
Publication date: 16 May 2016

Muslim Amin

– The purpose of this paper is to examine the internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty.

15499

Abstract

Purpose

The purpose of this paper is to examine the internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty.

Design/methodology/approach

A total of 1,000 questionnaires were distributed for internet banking customers and 520 were returned (resulting 52 percentage of response rate).

Findings

The results confirmed that the all four dimensions (personal need, site organization, user friendliness, and efficiency of website) are distinct constructs. The results also indicated that internet banking service quality consisting of four dimensions has appropriate reliability and each dimensions has a positive significant relationship with internet banking service quality. The efficiency of banking website is the important aspect of internet banking service quality. The finding found that the relationship between internet banking service quality, e-customer satisfaction and e-customer loyalty are significant.

Practical implications

The results show that the higher level of internet banking service quality significantly impacts to e-customer satisfaction and consequently leads to e-customer loyalty and a lower intention to leave the relationship with bank.

Originality/value

This study proposes a model to understand the effect of internet banking service quality on e-customer satisfaction and e-customer loyalty in developing country. The constructs truly reflect the dynamism of customers’ banking relationship and a better understanding the attitude on internet banking will help the bankers in implementing more effective marketing strategies.

Details

International Journal of Bank Marketing, vol. 34 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 December 2003

Siriluck Rotchanakitumnuai and Mark Speece

Many Thai banks are currently implementing Internet banking. Banks that offer service via this channel claim that it reduces costs and makes them more competitive. However, many…

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Abstract

Many Thai banks are currently implementing Internet banking. Banks that offer service via this channel claim that it reduces costs and makes them more competitive. However, many corporate customers 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 Thai 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.

Details

International Journal of Bank Marketing, vol. 21 no. 6/7
Type: Research Article
ISSN: 0265-2323

Keywords

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