Factors Influencing Customer Perceptions On Adoption Of Internet Banking In Namibia

ABSTRACT

Internet banking is receiving greater attention as one of the most important and popular

delivery channel for banking services in the cyber age, and it has remarkably developed in

the light of the advances made in the information and communication technologies over the

last three decades. This study analyses the factors influencing customer perceptions on

adoption of Internet banking in Namibia by focusing on the selected demographic attributes

such as gender, age, qualification and employment status, and the constructs of perceived

usefulness, perceived ease of use, trust, attitude, subjective norms, perceived behavioural

control and intention.

As part of this empirical study using a quantitative approach and informed by a hybrid

construct of an extended trust and technology acceptance model (TAM) with the decomposed

theory of planned behaviour (DTPB), data was collected through a survey questionnaire on

factors influencing customer perceptions on adoption of Internet banking and analysed using

Statistical Package for Social Science (SPSS) software. The study found that each of the

constructs surveyed have varying degrees of perceptions and influences on customer adoption

of Internet banking in Namibia ranging from as high as 78.75% to as low as 55.59%.

Furthermore, the study highlights the importance of considering the demographic and

contextual attributes in analysing and understanding factors influencing customer perceptions

on adoption of Internet banking.

The results should assist banks in achieving higher penetration rates of Internet banking

services that would not only benefit from much lower operating costs and improved

profitability but also ensure that customers benefit from the convenience, speed and roundthe-

clock availability of such services. Namibia, as a country, also stands to benefit from

increased Internet banking usage by virtue of the improved financial inclusion in the

economy as regards ease of access, availability and usage of the formal financial system.

The banks should, however, consider Internet banking as a strategic business necessity and

develop aggressive marketing and outreach strategies to ensure that customers are motivated

to adopt cost effective and convenient Internet banking services. The absolute need for the

banks to take into consideration the findings of this study cannot be overemphasised.