Adoption of internet banking : a customers perspectives

Abstract

The purpose of this study is to determine the level of customer acceptance of online banking in Kenya and what factors influence their decisions to use it. The paper also uses the Technology Acceptance Model and applies it to bank customers in Kenya. The findings suggest that internet bank use increases insofar as customers perceive it as useful and not risky to use. The results show that bank customers in Kenya are more concerned about the security of transaction as most important factor in adopting online banking. The perceived usefulness is central because it determines whether the perceived ease of internet bank use will lead to increased use of the internet bank. However, reluctance to change is a major obstacle to the use of internet banking. This problem has been further encountered by banks in encouraging customers' adoption oftheir internet banking service. Implications for banks are that they need to put much effort not only into providing a more secure means of transaction, but also into explaining to their customers how the internet bank is useful to them.