Factors affecting Palestinian customers’ use of online banking services

Abstract

Purpose The purpose of this paper is to examine factors that affect Palestinian customers’ use of online banking services. Design/methodology/approach An empirical study was conducted using a questionnaire in order to test the hypotheses. The questionnaire was distributed to 500 respondents selected by the participating banks. A total of 369 complete questionnaires were returned. The study’s independent variables include technology adoption propensity, customers’ value for online personalization, customers’ privacy concern, e-trust, technological leadership and loyalty. Palestinian customers’ usage of online banking services is the dependent variable. Findings The results of the model tested clearly suggest that the use of online banking services is influenced, respectively, by the technological leadership, e-trust, e-loyalty, customers’ value for online personalization, customers’ concern for privacy and propensity of technology adoption. Finally, this paper suggests that policy makers should develop a prioritized hierarchy of actions in developing the effective use of bank’s online services, based on the t- and p-values of the latter mentioned factors. Research limitations/implications One limitation of the study is relying on self-reported cross-sectional data collection, rather than longitudinal surveying. Despite such limitation, the study provides the Palestinian banking sector with recommendations to promote online banking services based on the empirically identified factors affecting such service adoption. Practical implications Palestinian banks should promote the adoption of online banking services by supporting personalization of services, privacy and trust. Customers should always be informed that their bank is among the first banks to introduce the latest state-of-the-art online services. Technology innovative and diverse online services should be offered by banks to attract customers. Originality/value Although numerous research studies have studied the factors affecting customers in using electronic and online banking services, few studies have considered such usage in the developing countries, such as Arab countries in general and Palestine in particular. This is the first study to examine the factors affecting the adoption of online banking services in Palestine. This study provides empirical evidence to fill in the gap by providing a deeper understanding of the factors affecting the usage of online banking services in the country. The findings of this study can help decision makers in the Palestinian banks to develop practical plans that might accelerate and expand the adoption of online banking emphasizing personalized and trusted services offered with high level of security and privacy.

Examining Customers’ Continuance Intentions towards E-wallet Usage: The Emergence of Mobile Payment Acceptance in Vietnam

“…The influences of customer satisfaction and customer trust on customer continuance intention are confirmed. On the other hand, in the mobile shopping industry, Shang (2017) examined the underlying variable affecting customer continuance intention of food and non-food products through smartphones and other mobile devices. He combined the TAM and ECM models to propose a new model focusing on perceived value (PV).…”

Customer loyalty to Islamic banks: Evidence from Indonesia

“…The marketing goal of a firm is to achieve customer loyalty through their attitudes and purchasing behavior (Watson et al, 2015). Attitude loyalty describes customer attitudes towards a firm relative to other firms offering the same service; and behavioral loyalty (or repurchases) is represented by actual buying behavior (Salem et al, 2019). Wu and Hussein (2019) define customer loyalty as a desire to and tolerance for purchasing at a higher price.…”

The effect of individual factors on user behaviour and the moderating role of trust: an empirical investigation of consumers’ acceptance of electronic banking in the Kurdistan Region of Iraq

“…Giovanis et al (2019) investigated, which of four well-established theoretical models (i.e., TAM) (Munoz-Leiva et al 2017;Alalwan et al 2018a, b), the theory of planned behaviour (Lee 2008;Yadav et al 2015), UTAUT (Cao and Niu 2019), the decomposed theory of planned behaviour (DTPB) best explains potential users' behavioural intentions (Shareef et al 2018) to adopt mobile banking (MB) services. Moreover, other factors affect each of the steps, respectively, action by the technological leadership, e-trust (Salem et al 2019), e-loyalty (Esterik-Plasmeijer and Raaij 2017; Berraies et al 2016), customers' value, for online personalization, customers' concern, for privacy, and the propensity of technology adoption (Rahi et al 2019). The best prediction of the use of new technologies may require the testing of the principal factors in order to learn about the customers' satisfaction (Thakur 2014;, customer loyalty (Shankar and Jebarajakirthy 2019), word-of-mouth (WOM) (Sampaio et al 2017) intention, andadoption (Alalwan et al 2018a, b;Siyal et al 2019;Chauhan et al 2019), how customer use the system (Baabdullah et al 2019a, b), and focusing on the role of users' commitment (Yuan et al 2019), which is called selfservice technologies (Chaouali and El-Hedhli 2019).…”