An Empirical Study of Factors Influencing the Adoption of Internet Banking

With rapid development of information technology, the banking industry has undergone significant operation changes over the last decade. Owing to few studies have examined the role of privacy concerns, trust and their antecedents in this issue, we consider that it is essential to identify the factors affect the adoption of Internet banking. Therefore, an empirical study was undertaken and the data of 670 responses was collected. In our attempt to bridge this gap, we found that perceived vulnerability and social awareness can significantly affect privacy concerns. In addition, perceived reputation and perceived similarity are also significant antecedents of trust, and it is consistent as prior studies in other fields. Furthermore, we found no support for the hypothesized effect of perceived size on trust as physical e-commerce. Finally, to our surprise, the negative relationship between privacy concerns and behavioral intention does not support. Therefore, bank managers can take these hypotheses into strategic considerations when they popularize the internet banking services to their customers. Since social awareness and perceived vulnerability are the personalities of the customer, banks can enhance their trust by not only reinforcing the physical reputation but also building up more similarity between physical bank and website style of internet banking. In sum, our research provide a different perspective on this critical, and we can reconsider other related factors in the further research.