The factors that affect customers’ decision to use of internet banking and risks inherent in internet banking

Abstract

Electronic commercial technology is becoming popular in today’s society and people attach great importance on applying internet banking system. In the past, technology development is the priority for improve the internet banking system. However, the convenient operation, practicability and security problems of using internet banking are the major concerns for potential customers. As a result, the goal of this research is to discover the major elements that can affect the customers’ decision to apply internet banking system. According to the theory of technology acceptance model (TAM), perceived ease of use, perceived usefulness and perceived internet security are the main factors that have an influence on customers’ acceptance of applying new technology. Then, the questionnaire, designed on the basis of TAM, were applied to collect data from WKU students and I used regression methodology to analyze the dataset. The result of this research supported that each one of PU, PEOU and PIS have positive relationship with customers’ acceptance of using internet banking, which is similar to TAM while there are still some differences. Besides, this research contributed for finding the main influences that these factors bring about to manage the internet banking system. Eventually, the effective strategies are provided to solve the security problems inherent in internet banking system and improve the customers’ trust toward it.