An examination of the critical factors affecting consumer acceptance of online banking: A focus on the dimensions of risk

Purpose – The recent advances in the technology of electronic banking have helped develop new ways of handling banking affairs, especially through online banking. Moreover, the rapid development of the internet has stimulated the banking sector towards encouraging customers to make their transactions online. The purpose of this paper is to introduce an extended technology acceptance model (TAM) model as a tool for examining the factors that have a significant impact on customers’ online banking acceptance. Design/methodology/approach – The typical TAM constructs were enhanced with the variables of perceived risk and quality of the internet connection. The proposed conceptual framework of the study (extended TAM), was tested on a sample of Greek internet users. Data were analysed using the “structural equation modelling” technique. Findings – Results provide overall support for the extended TAM model and confirm its robustness in predicting customers’ intention of adoption of internet banking. More specifically, results underlined the important impact of perceived usefulness, security risk and performance risk on the intention to use internet banking. On the contrary, the impact of perceived ease of use and quality of the internet connection seemed to have only an indirect effect on internet banking adoption. Practical implications – The paper makes an analytical effort in order to point out areas that banking organisations should emphasize in order to successfully implement online banking and, therefore, harvest its potential benefits. Originality/value – The paper proposes an enhanced conceptual framework (extended TAM) that examines vital issues concerning online banking acceptance, thus providing valuable outcomes for decision makers and academics. To the best of the researchers’ knowledge, such an extension of the TAM model has never been examined in the relevant literature. Moreover, the results of the study may be generalised in other developed countries whose financial sector faces significant challenges (e.g. Spain, Italy, Portugal, Ireland, etc.).