Consumer perceptions of the barriers to adoption of internet banking: a case study in Libya

Banking services have been impacted by developments in information technology and considerable funds have been invested in the development of communications technology in the banking sector. E-banking is the major platform for adopting and using highly-developed IT systems in banking services. Evaluating an individual's acceptance of using e-banking technology, and Internet banking in particular, is a key issue facing the banking sector. Arguments remain about the most important factors that impact upon customers’ willingness to adopt Internet banking, despite considerable attention being paid to issues of assessment of the adoption of ebanking services in general, and Internet banking in particular. This study reviewed relevant IT literature which informed the development of an extension of the Technology Acceptance Model (TAM) by adding external factors with the aim of being more relevant for developing countries such as Libya. This study proposes an assessment methodology model to foster the adoption of Internet banking in Libya. The study model included six constructs: Trust, Security, Customer Support, Internet Network Quality, Perceived Ease of Use and Perceived Usefulness. The study model considered perceptions of bank customers about these constructs relating to the adoption of Internet banking services. The instrument was designed to measure the attitudes of bank customers towards the adoption of online banking. A quantitative study was conducted with survey responses received from 536 Libyan bank customers. The findings confirmed that the study model is valid and reliable to measure the adoption of Internet banking from the point of view of customers’ perceptions; and the study model supported the relationships among the seven constructs. The findings of the study indicate that Libyan bank customers perceive Internet banking to be risky but essential to development and growth of the economy. Bank customers are planning to adopt banking services through the Internet despite their concerns relating to factors such as security, trust, support and Internet quality that relate to Perceived Ease of Use (PEOU), and Perceived Usefulness (PU) of the new technology. The adoption of Internet banking technology may expand extensively in the Libyan banking sector in the near future. The use of Internet banking still presents number of challenging issues. Assessing the acceptance of Internet banking usage is seen as an important issue encountered by the banking sector. The key reasons behind the reluctance by users towards use online banking services include the persistence of factors that impact upon the adoption of e-banking services. The quantitative analysis of results from the survey questionnaire confirmed all the relationships in the traditional TAM, as well as the importance of trust and security in the new technology and issues relating to Internet network quality and support. Factors such as PU were confirmed in terms of their impact upon user or non-users’ intentions towards using new technology. PEOU was another major determinant factor influencing customers’ intention towards the use of Internet banking technology. The study aims to make a contribution to practice and theory by providing a validated model to measure the willingness of consumers to adopt Internet banking services. This study provides recommendations to Libyan commercial banks to assist them in the development of online banking services

Customer behaviour towards internet banking: a study of the dormant users of Saudi Arabia

Technology acceptance, especially internet banking acceptance has become a vital issue in the business world today. A number of studies agree on the importance of customer adoption and full utilization of internet banking services as the key factors for banks to achieve the benefits from launching this channel (eg. Guriting & Ndubisi, 2006; Nor, 2005; Yousafzai, 2005; Mols et al., 1999). They also highlight the crucial role of the comprehensive understanding of the factors and their interactions with each other that influence customers in accepting and using internet banking services. A review of literature related to internet banking indicates that while there are numerous studies that have tried to identify the factors affecting non-adopters and/or users of internet banking there is no single study, specifically in Saudi Arabia, that sheds light on the factors affecting dormant users of internet banking. Hence, the present study provides additional insights into this issue. The study adds to the body of knowledge in the technology acceptance field by developing a comprehensive model for internet banking acceptance. The model extended the Technology Acceptance Model (TAM) to include additional components, namely task-technology fit (TTF), perceived trust and perceived risk. The subjects for this study were Saudi bank customers who are dormant users of internet banking services. One thousand copies of the questionnaire were distributed in five Saudi cities: Riyadh, Jeddah, Dammam, Abhah and Buraydah. A total of 430 completed questionnaires were received, giving a response rate of 43% of the original sample. Structural equation modelling (SEM) was the statistical technique employed in this study. The main results of this study suggest that two factors, namely perceived usefulness and service visibility directly influence Saudi customers’ intention to use internet banking. Perceived ease of use is indirectly significant on the behavioral intentions through perceived usefulness. Moreover, perceived trust, system reliability and accessibility significantly influence perceived ease of use of internet banking. The results also reveal that customer trust in internet banking can be developed by focusing on only one theoretical construct of trust, perceived bank trustworthiness of the internet banking provider. Based on the findings, implications for internet banking practice and related future research have been identified

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

The State of e-Banking Implementation in Nigeria: A Post-Consolidation Review

The most widely used e-Banking instrument in �igeria is e-Payment, particularly the automatic teller machine (ATM) card. However, with the adoption of e-Banking by all the banks in �igeria, the volume of cash in circulation has continued to increase pre-and-post bank recapitalization/consolidation exercise. Furthermore, some of the 25 banks that survived the exercise were found lately to have depleted their capital base and have lost credibility before the consumers, e-Banking implementation notwithstanding. Therefore, in this paper, we review the state of e-Banking implementation in �igeria and evaluate the influence of trust on the adoption of e-Payment using an extended technology acceptance model (TAM). Similarly, we investigate organizational reputation, perceived risk and perceived trust in the management of banks as a factor for enhancing customer loyalty. The findings in this work reveal that perceived ease of use and perceived usefulness are not only antecedent to ebanking acceptance, they are also factors to retain customers to the use of e-banking system such as organizational reputation, perceived risk and trust

The Impact Of Technology Trust On The Acceptance Of Mobile Banking Technology Within Nigeria

With advancement in the use of information technology seen as a key factor in economic development, developed countries are increasingly reviewing traditional systems, in various sectors such as education, health, transport and finance, and identifying how they may be improved or replaced with automated systems. In this study, the authors examine the role of technology trust in the acceptance of mobile banking in Nigeria as the country attempts to transition into a cashless economy. For Nigeria, like many other countries, its economic growth is linked, at least in part, to its improvement in information technology infrastructure, as well as establishing secure, convenient and reliable payments systems. Utilising the Technology Acceptance Model, this study investigates causal relationships between technology trust and other factors influencing user’s intention to adopt technology; focusing on the impact of seven factors contributing to technology trust. Data from 1725 respondents was analysed using confirmatory factor analysis and the results showed that confidentiality, integrity, authentication, access control, best business practices and non-repudiation significantly influenced technology trust. Technology trust showed a direct significant influence on perceived ease of use and usefulness, a direct influence on intention to use as well as an indirect influence on intention to use through its impact on perceived usefulness and perceived ease of use. Furthermore, perceived ease of use and perceived usefulness showed significant influence on consumer’s intention to adopt the technology. With mobile banking being a key driver of Nigeria’s cashless economy goals, this study provides quantitative knowledge regarding technology trust and adoption behaviour in Nigeria as well as significant insight on areas where policy makers and mobile banking vendors can focus strategies engineered to improve trust in mobile banking and increase user adoption of their technology

The Impact of Trust on Acceptance of Online Banking

Major benefits of Online Banking include for banks cost savings, and for customers convenience. Nevertheless, many people perceive Internet banking as risky. This paper introduces a tentative conceptual framework. Trust will be integrated into the Technology Acceptance Model – TAM - (Davis, 1989). Recent research showed that Trust has a striking influence on user willingness to engage in online exchanges of money and personal sensitive information. Detailed literature about Online Banking and Trust is provided. TAM is discussed in depth; external variables that are suitable for the Online Banking context is suggested. In addition the theoretical justification for the conceptual framework integration is discussed. Finally managerial implications and recommendations for Online Banking acceptance are suggested

Managerial Gaps in e-Banking Quality Drivers: An Empirical Assessment

Providing quality service to the customer is a main issue for e-banking. The extant literature on e-services has preferentially examined quality factors as perceived by customers. On the other hand, quality depends on the managerial perceptions about quality drivers and the decisions that would follow from these perceptions. According to SERVQUAL - the most known service quality model - any gaps between management’s and customers’ perceptions would affect the experienced quality and then the customer satisfaction. The aim of this paper is to explore how bank managers perceive quality drivers for e-banking through a preliminary empirical survey

Internet banking acceptance model: Cross-market examination

This article proposes a revised technology acceptance model to measure consumers’ acceptance of Internet banking, the Internet Banking Acceptance Model (IBAM). Data was collected from 618 university students in the United Kingdom and Saudi Arabia. The results suggest the importance of attitude, such that attitude and behavioral intentions emerge as a single factor, denoted as “attitudinal intentions” (AI). Structural equation modeling confirms the fit of the model, in which perceived usefulness and trust fully mediate the impact of subjective norms and perceived manageability on AI. The invariance analysis demonstrates the psychometric equivalence of the IBAM measurements between the two country groups. At the structural level, the influence of trust and system usefulness on AI vary between the two countries, emphasizing the potential role of cultures in IS adoption. The IBAM is robust and parsimonious, explaining over 80% of AI

An improved negative selection algorithm based on the hybridization of cuckoo search and differential evolution for anomaly detection

The biological immune system (BIS) is characterized by networks of cells, tissues, and organs communicating and working in synchronization. It also has the ability to learn, recognize, and remember, thus providing the solid foundation for the development of Artificial Immune System (AIS). Since the emergence of AIS, it has proved itself as an area of computational intelligence. Real-Valued Negative Selection Algorithm with Variable-Sized Detectors (V-Detectors) is an offspring of AIS and demonstrated its potentials in the field of anomaly detection. The V-Detectors algorithm depends greatly on the random detectors generated in monitoring the status of a system. These randomly generated detectors suffer from not been able to adequately cover the non-self space, which diminishes the detection performance of the V-Detectors algorithm. This research therefore proposed CSDE-V-Detectors which entail the use of the hybridization of Cuckoo Search (CS) and Differential Evolution (DE) in optimizing the random detectors of the V-Detectors. The DE is integrated with CS at the population initialization by distributing the population linearly. This linear distribution gives the population a unique, stable, and progressive distribution process. Thus, each individual detector is characteristically different from the other detectors. CSDE capabilities of global search, and use of L´evy flight facilitates the effectiveness of the detector set in the search space. In comparison with V-Detectors, cuckoo search, differential evolution, support vector machine, artificial neural network, na¨ıve bayes, and k-NN, experimental results demonstrates that CSDE-V-Detectors outperforms other algorithms with an average detection rate of 95:30% on all the datasets. This signifies that CSDE-V-Detectors can efficiently attain highest detection rates and lowest false alarm rates for anomaly detection. Thus, the optimization of the randomly detectors of V-Detectors algorithm with CSDE is proficient and suitable for anomaly detection tasks