Assessing the Variables that Contribute to Customers' Utilization of Internet Banking: A Study of Banking Institutions in Guyana

Abstract

Internet banking across banking institutions has grown tremendously in popularity over the past two decades. However, the adoption of Internet banking among customers remains a crucial challenge within the banking industry, especially in developing countries. While there are several factors affecting the adoption of Internet banking in both developing and developed countries, the evidence is more robust for developed regions. For this reason, this research seeks to investigate the factors affecting the adoption of Internet banking among banking customers in the developing country of Guyana. The study proposes and tests a conceptual model based on the Technology Acceptance Model (TAM). The model extends TAM through the inclusion of information quality, service quality, system quality and computer self- efficacy as additional predictor variables. The study employed a Structural Equation Modeling (SEM) approach to determine the relationship between constructs of the conceptual model. Data was collected via questionnaire responses obtained from 160 Internet banking customers. The findings of the study suggest that service quality positively affects consumers’ perceived ease of use of Internet banking but not the perceived usefulness of Internet banking. It was also found that computer self- efficacy positively affects consumers’ perceived usefulness to adopt Internet banking but not perceived ease of use for same. The findings showed that information quality did not impact perceived usefulness and neither did service quality for perceived ease of use to adopt Internet banking However, the results of the study showed that both perceived ease of use and perceived usefulness significantly impacted the actual usage of Internet banking.