Online banking adoption: an empirical analysis

Abstract

Purpose-This paper aims to empirically examine the factors that affect the adoption of online banking in Vietnam. Perceived usefulness, perceived ease of use, trust and government support were examined to determine if these factors are affecting online banking adoption. Design/methodology/approach-A survey was distributed to 156 respondents in Vietnam with 103 usable samples giving a response rate of 66 percent. Data were analyzed by employing correlation and multiple regression analysis. Findings-The results showed that perceived usefulness, trust and government support all positively associated with the intention to use online banking in Vietnam. Contrary to the technology acceptance model, perceived ease of use was found to be not significant in this study. Research limitations/implications-This study was conducted in Vietnam and future research can use this model to study the adoption of online banking in other countries. Practical implications-The results allow banks' decision makers to develop strategies that can increase the adoption of online banking. Banks should improve the security and privacy of the web sites, which will increase the trust of users. Banks should also create features which are useful to users and make sure users are aware of these features. Lastly, government should also play a role to support banks in their efforts to increase online banking adoption. Originality/value-The findings allow the factors that can influence the adoption of online banking in Vietnam to be understood. Unlike existing studies based on Technology Acceptance Model (TAM), this study includes both security and government support on top of the existing variables used in TAM. Most studies on adoption of online banking are focused on developed countries. By focusing on Vietnam, this model can also be applied to other countries which are relatively new to e-commerce and online banking.

The Impact of Cost, Customer Experience, Ease of Use, and Trust towards Adoption of Online Banking

“…This result differs from a number of past research (e.g., Asdullah & Yazdifar, 2016;Jahangir & Begum, 2008;Khaitbaeva et al, 2014;Sathye, 1999;Shih & Fang, 2004). Nevertheless, some research (e.g., Chong et al, 2010;Chung & Paynter, 2002;Pikkarainen et al, 2004) also reported to have no significant impact of ease of use on adoption of online banking. One of the possible reasons that lead to this inconsistency of result is the respondents' age.…”

“…More than 50% of the respondents aged 21-29, who are seen as tech savvy generation. As stated by Chong et al (2010), youngsters nowadays may not see ease of use as an important factor that influence them to adopt internet banking. Chong et al (2010) reasoned that youngsters do not see ease of use as a barrier to their adoption of online banking as they can learn about online banking services easily.…”

“…Consistent with prior studies (e.g., Baraghani, 2007;Chen & Barnes, 2007;Chong, Oii, Lin, & Tan, 2010;Dauda et al, 2007;Gefen, 2000;Lee et al, 2005;McKnight & Chervany, 2002), the findings in this study show that trust will influence the adoption of online banking in Selangor, Malaysia. Chong et al (2010) stated that people from developing countries tend to be more cautious when using online banking services as it involves money and people are used to conduct monetary transaction in-person. According to Featherman, Miyazaki, and Sprott (2010), privacy risk that seemed to hinder people from adopting online banking services may reduce through promising perceptions on the provider.…”

Security, Risk, and Trust in Individuals’ Internet Banking Adoption: An Integrated Model

“…Limited by spatial and temporal separation, trust between internet service providers and users is hardly to be built through virtual interaction. To respond to this tendency, trust-related research turned to two directions: (1) to determine the antecedents of trust within online service to strengthen trust 3,4,5 , and (2) to study the applications of trust for the online services like e-commerce 2,6,8 , online investment 7 , knowledge sharing 18 , and internet banking 9,10,11,12 .…”

“…Under this condition, individuals' trust in internet banking determines their adoption 9,10,11,12 . Nevertheless, relevant evaluation and definition of trust in the online environment are indefinite 13 .…”