Barriers in adoption of internet banking: A structural equation modeling - Neural network approach

Imtiaz Arif, Wajeeha Aslam and Yujong Hwang

Technology in Society, 2020, vol. 61, issue C

Abstract: Comparatively, less attention has been paid to the factors that obstruct consumers to use internet banking. Therefore, this study aims to analyze the barriers in the adoption of Internet banking in Karachi, Pakistan. A survey research questionnaire was adopted and, in total, 300 useable responses were used from the banks’ customers. First exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were applied for the establishment of measurement model and structural equation modeling (SEM) was used to find the significant influence barriers on Internet banking adoption. In the second phase, the neural network model was used to rank the relative influence of significant predictors obtained from SEM. The results indicate a significant positive relationship between value barrier, risk barrier, and image barrier with the usage of Internet banking. Only, the traditional barrier has a negative insignificant effect on the usage of Internet banking. The image barrier has a higher impact on usage of Internet banking followed by the value barrier and risk barrier. Results also indicate that males are facing high barriers in comparison with females. Findings provide guidelines to banks for developing facilities that enable the consumer to use Internet banking for their financial transactions. This study will be highly beneficial for the banking industry to improve their online services and revise their policies to facilitate consumers by meeting their needs.

Keywords: Internet banking; Image barrier; Value barrier; Trust barrier; Tradition barrier; Neural network (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:teinso:v:61:y:2020:i:c:s0160791x19302386

DOI: 10.1016/j.techsoc.2020.101231

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