Internet banking acceptable model : evaluating behavioural intentions in the adoption of internet banking

Abstract

The development and diffusion of new technologies by financial institutions in Kenya can result in a more efficient banking system. This dissertation examines the factors that influence customers of banking institutions in Kenya to adopt new technologies, specifically internet banking. The study reviewed literature in respect of four theories of Information Systems acceptance: the Technology Acceptance Model (TAM) by Davis (1986), The Theory of Reasoned Action (TRA) by Fishbein and Ajzen (1975), The Theory of Planned Behaviour (TPB) by Ajzen (1991) and Diffusion of Innovation by Rogers (1995), within the context of internet banking, then formulated a research model. The research was carried through across-sectional survey design which questioned respondents on Internet banking services. The population of study constituted customers of three banks in the Central Business District (CBD) within Nairobi City. Respondents of the study were retails customers. The sample study consisted of 124 respondents. Data collected was analyzed by use of factor analysis, descriptive and correlation analysis. Findings revealed that, adoption of internet banking is significantly influence by ease of use, usefulness, relative advantage, fast access to internet and behavioural control factors. Consequently, the final modified research model called the “Internet Banking Acceptance Model” was validated and found to have the power to explain and predict customer‘s behavioural intentions towards Internet banking in the context of the Kenyan Banking environment.