Factors Affecting the Adoption of Internet Banking: A Study in Dhaka City, Bangladesh

International Journal of Business and Innovation. Vol. 4, Issue 1, 2018

Title: Factors Affecting the Adoption of Internet Banking: A Study in Dhaka City, Bangladesh

Author: Zobaida Khanam1
Mohammad Zahedul Alam2

Abstract
Internet Banking is considered as a strategic resource that replaces paper based and labour intensive functions with automated processes for ensuring greater efficiency, control of operations and reduction of cost. Internet Banking users are being expected to rise in Bangladesh due to the Government vision 2021: Digital Bangladesh, where Internet Banking system is one of the important aspects to speed up the financial activities of the country. This study aims at identifying some important factors which are account for the adoption of Internet Banking by the users of Bangladesh. To investigate the factors, a circumstantial questionnaire study is conducted on a sample group of 200 banking customers selected from Dhaka city. Then by employing Factors Analysis, it is identified that factors “security and privacy”, “features of the Internet banking website” followed by “Perceived ease of use and usefulness’’ explained most of the variance. This study, hopefully, will provide valuable information to the banking industry to develop its marketing approach for promoting online banking services and to become aware of the factors that are most influential to increase the number of Internet Banking users in Bangladesh.

Keywords
Internet Banking, Dhaka City, Adoption, Security, Perceived ease of use.

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