An Analysis of Online Banking Usage Intentions: an Extension of the Technology Acceptance Model

Internet banking refers to an online facility which provides an alternative channel for delivering banking or financial services and enables individuals to access their accounts anytime and anywhere through a bank’s web site (Z. Liao, Z., and M. T. Cheung, 2012). In other words, online banking named as E-banking, internet banking or virtual banking. Generally, the operation of online banking is connect to the core banking system designed by bank and then contrast to branch banking which refer to traditional way of bank customers accessed to banking services. Nowadays, internet banking is one of the most important businesses in electronic business around the world (Ariff et al, 2012). Most of the conventional banks have to operate and provide the online banking service to their customers as needs by

The threats and opportunities in the e-banking line are increased due to the introduction of internet. The threat of e-banks and the point of equality concept are very highly used by the current competitors. There are rivals such as CIMB clicks, Hong Leong online banking and many more which cause Maybank2u.com unable to monopolize the market. As a consequence, the customers can exchange brands easily. Moreover, the customer of Maybank are likely to concern with the safety matter of online banking. They prefers to do transaction in the classic ways more than online banking due to their lacking of confidence toward security and safety matter of online banking. They are scared of hacker that might intercept their information. But other than that, the bank may significantly affected by the present macroeconomic situation across the global and adjustment in economic policies in South East Asian countries. This happened because Maybank’s goal is to widen Islamic business in markets such as Singapore and Indonesia as part of their target on the ASEAN

Moreover, bank would able to enhance the usage of internet banking by adding more services as customers required. Other actors concerns, among banks, their customers will be delighted by improving their services to their own customers. Then, actors like supermarket, shopping complex also able to gain from the internet bank usage of customers since it reduce the cost of transaction, unnecessary rush in the counters and it will help them to provide better service to the

Internet banking has many benefits for consumers and these advantages also can explain why it is growing in popularity.

In this essay I will be writing about Online Banking, its use, how it evolved, impacts and how it benefited the global businesses. In late 1980s, the term online banking became popular. But in 1990s, the financial institutions implemented the online banking services. Initially it took some time to adopt the customers to do monetary transactions through online banking. Afterwards, with increasing use of computers, internet and World Wide Web, banks introduced new form of banking called Online Banking. It is a service from a bank to perform banking transactions through internet. Transactions like paying bills, transferring funds, applications and payments over loans & mortgages, accounting statements viewing, viewing account’s transaction history, looking for products and services provided by banks, getting answers of queries instantly.

1. To identify the key factors affecting the decision to adopt Internet banking system in Botswana.

This chapter illustrates complete assessment on the findings made on electronic payment platform adoption prospect by Royal Insurance Corporation of Bhutan Limited in its chosen lines of businesses. The theoretical framework of Iacovou et al., (1995) model was used as the base for the research, customized to be applicable to Bhutanese perception. The Independent variables are perceived benefits, top management support, organizational readiness and external pressure and electronic payment platform adoption as dependent variable. The research also came upon some of astoundingly latest findings; it

Recently, there has been incredible growth in the use of mobile phones. That is because, they have become highly flexible and multifunctional, they can be used anytime, anywhere, and for several purposes – from utilitarian to hedonic. Also, the rate of internet users has been growing at a rocket speed over time (Negahban and Chung, 2014). These innovations in telecommunication have enabled the launch of new methods to access the banking services through several e-channels like internet banking and mobile banking. However, many bank customers still prefer banking in the traditional way – going to branch premises (Chandran, 2014). The underutilized information technology has led many researchers to develop numerous models to study its acceptance by people (Baptista and Oliveira, 2017). The fact that providing an enjoyable and fun environment can favourably increase the acceptance of technology by users (Venkatesh et al, 2012), has prompted many banks to apply gamification to their financial services (Baptista and Oliveira, 2017).

Davis (1986) defined Perceived usefulness as “The degree to which an individual believes that using the particular system would enhance his or her performance” and Perceived ease of use is defined as “the degree to which a person believes that using a particular system would be free of effort”. According to him attitude of the user towards the acceptance of new technology or information system is determined by perceived usefulness and perceived ease of use. Technology Acceptance Model was developed with the purpose of explaining why users accept or reject information technology. TAM is specified in the causal linkages between two key beliefs, i.e Perceived usefulness and perceived ease of use. (kamel & Hassen,

(The wider scope of my research is the internet banking, rather the online banking, but I’ve narrowed the scope to account opening and registration. Further on, I will do more research on implementing online banking as a whole, but for this proposal, my focus is on account opening.)

Global internet access was over 100 million people in December 2005, presenting innovative advertises for internet-based services like internet banking. Since the new millennium, internet banking has knowledge of volatile expansion in various countries and has changed traditional banking practice. Introducing internet banking services, traditional financial organizations search for lesser operational outlay, develop consumer banking services, keep customers and enlarge share of client. Current proof propose that an internet-based consumer banking tactic might be efficient, among reports of more beneficial, faithful and devoted consumers compared among traditional banking customers. Therefore, recent banks currently look upon the internet channel similarly significant to traditional channels of branches, automated teller machines (ATM), telephone banking and call centres. In the innovative banking atmosphere, internet banking is gradually more handled as an operational action and a significant part of a multi-channel tactic.

There are a number of different models to study consumer acceptance of new technologies and study consumer behaviour. The Diffusion of Innovations theory (Rogers 1962), Technology acceptance model (TAM) and Unified Theory of Acceptance and Use of Technology (UTAUT) (Venkatesh 2000, 2003) provide certain metrics to study the consumer acceptance of a new technology. In addition to consumer acceptance, the behavioural intentions of

Aljasser and Sasidhar (2013) stated, “in Saudi Arabia, both traditional banks and women-only banks function in parallel” (p. 9); however, men and women have separated buildings. This study will investigate female Saudi users’ perceptions toward online banking in Saudi Arabia. Statistically, this research will identify the factors that influence Saudi female users to adopt online banking. Online banking services are beneficial for the consumer; it offers remote electronic services for users (Wischnevsky & Damanpour, 2003). A convenient environment to do their transactions through online banking website (Montazemi & Qahri-Saremi, 2015). Also, online banking services can be used either through computers or smartphones (Sukkar & Hasan, 2005; Abdalkrim & Khrais, 2013; Beadnell, 2014).

Internet Banking is empowering customers and increasing customer services quality in Banking Industry in United Kingdom.

PURPOSE – The purpose of this paper is to know the perception of the customers’ towards dimensions of E-banking between public and private banks across Accuracy, Cost Effectiveness, Efficiency, Accessibility and Easy to use.