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

Hossen, Ghaled K. Elsaber (2014) Consumer perceptions of the barriers to adoption of internet banking: a case study in Libya. [Thesis (PhD/Research)]

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Abstract

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.


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Item Type: Thesis (PhD/Research)
Item Status: Live Archive
Additional Information: Doctor of Philosophy (PhD) thesis.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Management and Enterprise
Supervisors: Soar, Jeffrey; Ally, Mustafa
Date Deposited: 09 Nov 2015 06:05
Last Modified: 10 Aug 2016 00:02
Uncontrolled Keywords: Libya; internet banking; e-banking
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150203 Financial Institutions (incl. Banking)
URI: http://eprints.usq.edu.au/id/eprint/28027

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