Academic journal article American Academic & Scholarly Research Journal

An Assessment of Users' Acceptance of Internet Banking: An Empirical Case of Egypt

Academic journal article American Academic & Scholarly Research Journal

An Assessment of Users' Acceptance of Internet Banking: An Empirical Case of Egypt

Article excerpt

Abstract. Internet banking has been of interest to academics, business leaders and banks officials over the past four decades, particularly in terms of enhancing customer services. Although the usage of internet banking continues to develop, and be widely accepted by customers, the research usually focuses on other banking sector business activities. The research to date has not provided a consensus on users' acceptance of internet banking. Even though in recent years the topic of banking automated services has appeared in management literature with increasing frequency, internet banking remains poorly defined and the interpretation of its acceptance fragmented, particularly in developing countries. In this study, I extend knowledge with regards to factors that influence users' acceptance of Internet banking in light of the Technology Acceptance Model (TAM), using data obtained from customers of one of the largest banks in Egypt. I explored that factors that influence users' acceptance on Internet banking, and used quantitative research in the form of questionnaire survey to meet the objectives of the research. The results show that the main factor, which affected banks' customers' decision to use Internet banking service, was ease of use, followed by usefulness and trust and credibility of the service. Other external factors such as personal innovativeness, individual differences, computer and Internet use experience, promoting circumstances and service assistance, and communication, which determined the three antecedents, were applicable and valid in explaining users' adoption.

Keywords: Internet banking, Bank management, Internet uses, Technology Acceptance Model.

1. INTRODUCTION

The future of Egypt's banking industry has been a hot topic ever since the start of the "Economic Reform" policy in 1991. Sweeping changes like relaxing new banking rules and regulations, privatizing and restructuring the banking industry, and incorporating information technology aimed at enhancing banks' financial status and accounting standards, and allowing the banking sector, being one of the most promising sectors in the economy, to restore public confidence, improve performance and be in line with international measures. Influenced by remarkable advances in information technology, most banks in Egypt have started, or are in the process of starting, automating their activities and providing electronic banking services such as Internet Banking services as a new way of doing their business. Recently introduced in some banks in Egypt, online banking provides customers with a broad range of bank services such as getting access to their accounts and obtaining up-to-date information, transferring payments between their accounts, or performing other banking operations like ordering bank statements, checkbooks, viewing interest rates on time deposits, and so forth.

Literature reports that the continuous development and integration of technologies through computers, telephone networks, etc., has started to dominate and reengineer business transactions worldwide, and has accelerated globalization of business (Rao, S. et al. 2003). The break through of the internet and its implementation in conducting business has changed the way firms operate and deliver their products and services. Capitalizing on online trading solutions in business transactions has first appeared in the United States in the mid nineties (Chan & Lu 2004). However, it was accompanied by opportunities as well as perils. The internet provides many potential benefits among which are better and cheaper access to new markets, locally and across borders, and better reach to more collaborative entrepreneurial networks of wholesalers and trading organizations. On the other hand, administering business transactions through the internet requires a suitable infrastructure, committed and skilled labor, and is accompanied by several concerns such as security matters, mistrust among stakeholders, protecting personal privacy, preventing copyright violations, etc. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.