Literature review on adoption of internet banking

Print this page Literature Review Despite the adoption of the Gramm-Leach-Bliley Act also called Financial Services Modernization Act in Novemberthere have been few strategic attempts in consolidating financial and insurance businesses and some of them i. This, despite the fact that some of the research papers cited in the attached literature review do identify diversifications gains from potential consolidation of banking and insurance firms. However, the inability of banks and insurance companies to merge effectively has not stopped the convergence process from a product offering standpoint. The chart demonstrates that all major financial services companies offer a diversified range of financial and insurance services.

Literature review on adoption of internet banking

This chapter reviews the literature on IB behavior through the lenses of nine adoption theories.

Literature review on adoption of internet banking

However, IB research is in an inconclusive state, and is far from unanimity regarding the approaches and conceptualizations used to understand the beliefs that truly influence IB behavior.

There is limited research dealing with the role of interventions that can assist managers in making effective decisions to speed the adoption process. Given the information- intensive nature of its operations and services, the banking sector is relatively amenable to innovative technologies Polasik and Wisniewski, With the development of asynchronous and secure transaction technologies, an increasing number of banks worldwide are broadening their service capabilities and reaching out to their customers by offering low-cost, self-service automated channels, i.

Internet Banking IB as a transactional and informational medium. Although decisions about integration of technology in financial services delivery are made at corporate level, the availability of new and complex technology such as IB does not necessitate the level or magnitude of change.

A critical aspect illustrating successful implementation is the acceptance of this technology at individual level i. In order to be successfully adopted and utilized, IB must offer clear-cut benefits for users e. Furthermore, benefits are seen as a necessary but alone are insufficient conditions toward understanding IB behavior Lasser et al.

This perspective asserts that IB adoption is primarily an outcome of a learning or communications process and a fundamental step in examining this process is the identification of factors that play an important role in the adoption of IB.

The following points characterise IB as a complex and innovative technology: Consequently, a dominant part of IB literature has focused on the demand aspect or the process by which adoption or rejection occurs.

Literature review on adoption of internet banking

This research stream has been studied through holistic and quantitative causal models and theories from adoption and diffusion literature which explain key dependent variables of interest, that is, behavioral intention to use and use.

Use is generally measured by the frequency, duration, and intensity of IB usage. The role of intention as a predictor of adoption behavior is critical and has been well-established in IB and IS research Taylor and Todd, IB behavior literature can be categorised into two main levels of conceptualization.

The first approach attempts to understand IB behavior through the lenses of adoption and diffusion theories. They postulated that IB attributes are relevant determinants of attitudes towards the use, intention to use and actual adoption of IB.

Although these theories address different aspects of the influences on behavioral change i. Perceptions, attitudes, and beliefs are formed over time, which in turn may influence decisions.

The section that follows will trace the progression of IB research focusing on nine specific theoretical models from replication studies to efforts at construct refinement and the search for an alternate theoretical mechanism that drives the adoption of IB.

Rogers inis the pioneering theory that laid down the primary foundation for the future of innovation diffusion research Rogers, It was grounded in theories of economics, sociology and communication and a synthesis of adoption-diffusion literature across disciplines, IDT identified five characteristics of an innovation that influences its adoption: It can also be defined as the fit between IB and the social and technological infrastructure of an individual.

IB adoption involves acquiring a set of complementary technologies: The influence of one technology on the next generation of that innovation is expected to be positive especially when the relationship between the two technologies is compatible Lee et al.

In other words, willingness to adopt a new technology is affected by a prior adoption pattern of related technologies and a greater level of compatibility. This will allow the new technology to be interpreted in a more familiar context.

Complexity CP refers to the degree to which IB is perceived to be relatively difficult to comprehend and use. However, in contrast with these findings, Tan and Teo did not find any support for the negative influence of CP on intention to adopt IB.

A limited number of studies has shown that TR is an important factor for IB adoption as individuals will feel more comfortable with the technology and are more likely to adopt it if they are offered experimental low-cost or low-risk trial of IB Black et al.

Literature Review Research Methodology Title and Objective Internet banking system and method in which a personal computer is connected companies believe that Ebanking adoption in India in the near future would be. 27 *Highlights (for review) Highlights: x Literature review analyses research on mobile banking adoption x Analysis indicates that m-banking research lacks a clear roadmap x Literature focuses on SMS banking in developing countries x m-banking adoption literature mostly utilizes technology acceptance model x Compatibility (with lifestyle and. The latest Technology news, reviews & opinion from The Sydney Morning Herald covering IT, Mobile, Internet, Social, Industrial & Research Technology and Science.

On the other hand, Puschel et al. Observability OB is defined as the degree to which an individual can see the availability of IB to others and can observe others using the service.

Rogers suggests that the more visible an innovation and its benefits are, the greater the likelihood of adoption, simply because the gains from adoption will be more easily recognized.

IDT has been applied to study IB behavior either explicitly or implicitly, through its influence and integration into other theories. Furthermore, Rogers did not identify the perceived risk of an innovation, but subsequently it has been found to be an important factor in explaining IB diffusion within IDT framework Black et al.

Theory of reasoned action The Theory of Reasoned Action TRAproposed by Martin Fishbein and Icek Ajzen inis a well- established social psychological model, which assumes that individuals are usually rational and will consider the implications of their actions prior to deciding whether or not to perform a given behavior Fishbein and Ajzen, In the context of IB, the more positive the attitude towards IB and the greater the perception of social pressure SN towards the use of IB, the stronger the intention to adopt or continue using IB.

Shih and Fang applied and extended the original TRA by adding network quality attributes security, user-friendliness, transaction speed, and information quality as antecedents of attitude towards the use of IB. They concluded that although the addition of extra variables does not improve the explanatory power of the original TRA, it did increase the explanatory power of attitude and behavioral intention.

Theory of planned behavior Icek Ajzen in proposed Theory of Planned Behaviour TPBthat expanded the boundary conditions of TRA to deal with behaviors over which individuals have incomplete volitional control by introducing Perceived Behavioral Control PBC as an additional determinant of intentions and behaviour Ajzen, PBC, a construct similar in nature to CO from IDT, is defined as the resources and opportunities available to an individual that offer the necessary conditions for adopting certain behavior.Despite considerable research on m-banking adoption that has appeared in international journals across disciplines, a review of literature on m-banking adoption remains missing.

Such a review represents an important milestone in the development of a research field. The present era of industrialization and globalization has added a lot of comfort and luxury to human life but has also lead to an alarming situation of huge environmental degradation incorporated with all the involved activities.

How many older users are online? The Eurostat community survey on ICT usage in households and by individuals found declining access to the Internet with age, and only 10% of people over 65 years having Internet access (Figure 1; Table 1) [Eurostat ].However, this is low by many countries' measurements, and more detailed country-based statistics are provided in the Appendix.

literature review consumer behaviour Internet banking technology adoption and diffusion models INTRODUCTION The s witnessed a marked shift in the banking services’ distribution channels due to the emergence of new technologies that simplified remote access to banks, that is, telephone banking, ATMs, debit cards, access via proprietary software installed on PCs, Internet banking (IB) and mobile .

Italian literature is written in the Italian language, particularly within may also refer to literature written by Italians or in Italy in other languages spoken in Italy, often languages that are closely related to modern Italian. An early example of Italian literature is the tradition of vernacular lyric poetry performed in Occitan, which reached Italy by the end of the 12th century.

efficient services marketing strategies to increase the rate of Internet banking adoption, and in turn, increase banks’ revenue and competitiveness. Furthermore, this Chapter 2 Literature Review Introduction Internet Banking

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