Factors affecting the acceptance of electronic banking services among individuals in Yemen

Abstract

Abstract The focus of this research is to determine the factors that influence individuals' acceptance of electronic banking services offered by Yemeni banks. Therefore, our proposed study has four salient variables: security and privacy, perceived risks and benefits, website usability, and electronic banking awareness. The measurement model was created using Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA). Structural equation modeling (SEM) was used to determine the extent to which individuals accepted electronic banking services. Data were collected through a questionnaire completed by 684 participants. The results of our study found that perceived risks and benefits, website usability and electronic banking awareness directly affected the acceptance of electronic banking services by individuals. However, security and privacy did not affect acceptance of electronic banking services in Yemen. This study enables us to understand the factors that influence the acceptance of electronic banking services by individuals in Yemen. Rather than focusing on adopting electronic banking services in developed countries, as many existing studies have done, our proposed model attempts to fill this gap. Similarly, it would be applicable to other developing countries. Decision makers in banks can focus on raising awareness of electronic banking services and making individuals aware of their benefits and ease of dealing with them by promoting and advertising the advantages of these services. This will enhance the acceptance of electronic banking services by Yemeni individuals. The study recommends that understanding the factors affecting acceptance of electronic banking is essential for practitioners looking for new ways of banking.