Internet Banking Case Study

Impact of separate factors affecting the consumer’s intention to use Internet Banking

Introduction

Internet banking is defined as an internet portal, through which customers can use different kinds of banking services ranging from bill payment to making investments. Banking can be done literally from anywhere if one has a computer and net connectivity. Internet banking helps consumers in conducting fast and convenient financial transaction activities. The breakthroughs in information technology occasioned by the introduction of the telecommunications networks and the computer system persist to shape the way banks and their corporate relationships are structured worldwide. The pressure of globalization, consolidation, deregulation and rapidly

TAM has proven to be a theoretical model which explains and predicts user behavior towards information technology. It is considered an influential extension of theory of reasoned action (TRA), according to Ajzen and Fishbein (1980). Davis (1989), Bagozzi, and Warshaw (1989) proposed TAM to explain why a user accepts or rejects information technology by adapting TRA. Davis argued that perceived usefulness will directly influence the behavioral intention. If a new technology improves the performance of users, potential users will develop a positive intention to adopt it. Moreover, perceived usefulness is influenced by perceived ease of use. Whenever the technology is free of effort, potential users will realize its usefulness.TAM provides a basis with which one traces how external variables influence belief, attitude, and intention to use. Two cognitive beliefs which are posited by TAM include perceived usefulness and perceived ease of use. According to TAM, one’s actual use of a technology system is influenced directly or indirectly by the user’s behavioral intentions, attitude, perceived usefulness of the system, and perceived ease of the system. TAM also proposes that external factors affect intention and actual use through mediated effects on perceived usefulness and perceived ease of use. The Technology acceptance model used

Nabi (2011) pointed out that all the elements for the the identified factors were important with respect to the user’s adoption of e-banking services. Credibility factors (Security and Privacy) were the major sources of dissatisfaction which have remarkably impacted user’s satisfaction. In the meantime, perceived ease of use (PEOU) and perceived usefulness (PU) were sources of satisfaction. The findings disclosed that security and privacy factors played an important role in determining the user’s acceptance of e-banking services with respect to different segmentation of age group, income level and level of