REVIEW OF LITERATURE

1. Howard and Moore (1982) reported that consumers must be aware of the new brand before adoption. Therefore, it is an important factor that the banks have to create awareness on nternet bankin! to the consumers. "onsumers !o throu!h a process of know#ed!e, persuasion, decision and confirmation before the$ adopt the product or services. The know#ed!e persuasion, decision and confirmation are different in different a!e !roups. %o it affects the a!e factor in internet bankin!. &ankin! e'perience refers to the #eve# of bankin! e'perience such as re#iabi#it$ and accessibi#it$ of usin! nternet bankin!. The$ reported that individua#s who use nternet bankin! were si!nificant#$ more satisfied in terms of re#iabi#it$ and accessibi#it$ of the nternet bankin! s$stem. 2. (ockett, )ink#hofer and *nnew (2++1) have investi!ated a wide variet$ of factors inf#uencin! the adoption of nternet financia# services in ,nited -in!dom. .mon! the variab#es, prior e'perience, vo#ume of transaction, trainin!, and e'terna# pressure are e'terna# factors that are used in this stud$. /everthe#ess, perceived product va#ue, bankin! e'perience and perceived risks are used to measure perceived usefu#ness in this stud$. &esides, the services provided b$ the banks shou#d be innovative with hi!h 0ua#it$ and user friend#$ to meet the individua#1s e'pectations. nternet bankin! must a#so be ab#e to provide a wide ran!e of financia# services that meet customer demands.

2.

Ta$#or and Todd (1993) discovered that e'perienced users with simi#ar s$stems wi## have !reater intention to use the s$stem. Therefore it is be#ieved that an individua#1s prior e'perience in computer and nternet usa!e has a positive impact on perceived usefu#ness and perceived ease of use of nternet bankin!. The resu#ts indicate that the decomposed Theor$ of 4#anned &ehavior provides a fu##er understandin! of behaviora# intention b$ focusin! on the factors that are #ike#$ to inf#uence s$stems use throu!h the app#ication of both desi!n and imp#ementation strate!ies.

5.

,chen na "$ri# *6e and 7eniffer -eru Man$eki (2+11) investi!ated the factors that

inf#uence the use of nternet bankin! services amon! $oun! Ma#a$sian adu#ts. 8esu#ts indicate that perceived ease of use, perceived usefu#ness, re#ative advanta!e, se#f9 efficac$, perceived credibi#it$ and tria# abi#it$ tend to inf#uence consumers to adopt nternet bankin!. The findin!s wou#d be usefu# for #iterature deve#opment in the sub:ect area, particu#ar#$ in Ma#a$sia. The$ basica##$ focus on the a!e factors that affect the internet bankin! usa!e. The$ used convenience9samp#in! method to se#ect the participants because it is considered an effort#ess approach to !et respondents to participate in a stud$ of this nature.

3.

;r. Mohammad <. .# %madi ("o##e!e of *conomics and .dministrative %ciences) aims to identif$ and understand factors that affect bank customers1 use of e#ectronic bankin! services. This stud$ inte!rates techno#o!$ acceptance mode# (T.M) with the theor$ of p#anned behavior mode# (T4&) and incorporates five cu#tura# dimensions and perceived risk to propose a theoretica# mode#. The main findin!s of the stud$ are= uncertaint$ avoidance has a positive and si!nificant impact on perceived ease of use and perceived usefu#ness. 4erceived risk has the stron!er impact on customers1 attitude, which in turn inf#uences customers1 intention to use e#ectronic bankin! services

>. ?ikandi and &#oor, (2++9) investi!ate the factors that inf#uence the adoption and effectiveness of e9commerce in retai# businesses in -en$a. Two surve$s were carried out. The resu#t shows that there was a drastic shift in the importance attached to some e9bankin! drivers between $ears 2++3 and 2++9. The$ conc#udes that e9bankin! has matured in deve#oped countries, it wou#d be e'pected that banks in deve#opin! countries wou#d #earn some #essons from the deve#oped countries and be spared some of the uncertainties under!one b$ their counterparts in techno#o!ica# deve#opment.

@. .kinci et a# (2++5) conducted the stud$ to deve#op an understandin! of consumersA attitudes and adoption of nternet bankin! amon! sophisticated consumers. ,sers and non9users of nternet &ankin! ( &) were e'amined based on a random samp#e differ with respect to academicians, demo!raphic, attitudina#, and behaviora# characteristics. The ana#$sis revea#ed si!nificant differences between the demo!raphic profi#es and attitudes of users and non9users. The$ further investi!ated the & users and three sub9

se!ments were defined accordin! to a set of bank se#ection criteria. Bina##$, based on the simi#arities between various )eb9based bank services, four homo!eneous cate!ories of services were defined b$ the researcher.

8. &arc6ak et a# (199@) under#ined the consumer motives for use of techno#o!ica##$ based bankin! services and distribution channe#s and found that customers cou#d be c#ustered on their mone$ mana!ement phi#osophies. Their resu#ts describin! four motivationa# c#usters inc#udin! Csecurit$ consciousD, Cma'imi6esD, Cinstant !ratificationD, and Chass#e avoidersD indicated that the four motivationa# se!ments had different attitudes and behaviors towards different bankin! techno#o!ies.

9. Ma#hotra and %in!h (2+1+) conduct an e'p#orator$ stud$ and make effort to present the current status of nternet bankin! in ndia and the e'tent of nternet bankin! services offered b$ nternet banks. n addition, it seeks to e'amine the factors affectin! the e'tent of nternet bankin! services. The resu#ts revea#s that the private and forei!n nternet bank have performed we## in offerin! a wider ran!e and more advanced services of internet bankin! in comparison with pub#ic sector banks. The$ a#so hi!h#i!hted the determinants affectin! the e'tent of nternet bankin! services, si6e of the bank, e'perience of the bank in offerin! nternet bankin!, financin! pattern and ownership of the bank are found to be si!nificant.

1+. 8od. et a# (2++9) e'amine the re#ationships amon! three dimensions of service 0ua#it$ that inf#uence overa## internet bankin! service 0ua#it$ and its subse0uent effect on customer satisfaction in a /ew Eea#and bankin! conte't. The resu#ts show si!nificant re#ationships amon! on#ine customer service 0ua#it$, on#ine information s$stem 0ua#it$, bankin! service product 0ua#it$, overa## internet bankin! service 0ua#it$ and customer satisfaction.

11. 7ohnston (199@) i##ustrates that certain actions, such as increasin! the speed of processin! information and customers, are #ike#$ to have an important effect in terms of p#easin! customersF however other activities, such as improvin! the re#iabi#it$ of e0uipment, wi## #essen dissatisfaction rather than de#i!ht customers and su!!ests that it is more important to ensure that the dissatisfies are dea#t with before the satisfies.

12. ?uritin! (2++>) e'amines the factors that determine intention to use on#ine bankin! in Ma#a$sia &orneo. n his stud$, the perceived ease of use and perceived usefu#ness factors are considered to be fundamenta# in determinin! the acceptance and use of various information techno#o!ies. However, these be#iefs ma$ not fu##$ c#arif$ behaviora# intention towards new#$ emer!in! techno#o!ies, such as on#ine bankin!. The resu#ts of the stud$ indicate that perceived usefu#ness and perceived ease of use are stron! determinants of behaviora# intention to adopt on#ine bankin!. There is a#so an indirect effect of computer se#f9efficac$ and prior !enera# computin! e'perience on behaviora# intention throu!h perceived usefu#ness and perceived ease of use.

12. .sim G %a#man (2++9) have done stud$ to determine the factors that affect sustainabi#it$ of internet usa!e b$ Ma#a$ $outh in -ota &haru, a rura# town in the north east of peninsu#ar Ma#a$sia. The researchers stud$ and conc#uded that there is sustainabi#it$ of internet usa!e amon! Ma#a$ $outh. The resu#ts of the stud$ showed that interpersona# and socia# network and perceived and rea#i6ed benefits have si!nificant positive effects on sustainabi#it$ of internet usa!e b$ Ma#a$ $outh. The resu#ts a#so showed that issues re#atin! to securit$ concerns and interruptions have si!nificant ne!ative effect on the sustainabi#it$ of internet usa!e b$ Ma#a$ $outh.

15. )adie /asri (.u!ust 2+11) determined those factors that inf#uence the adoption of internet bankin! services in Tunisia The empirica# resu#ts show that a!e, income, !ender and income a## have si!nificant effects on behaviora# intention to use on#ine bankin!. .n important findin! of this stud$ is that, amon! Hear#$ adoptersA, convenience was a more important indicator of intentions to adopt internet bankin!. 8isk, securit$ and prior internet know#ed!e is a#so an important factor inf#uencin! customers adoptin! internet bankin! after convenience. .mon! demo!raphic variab#es, further si!nificant inf#uences have been found for instruction and occupation. .n understandin! of the factors identified n this stud$ a##ows bank mana!ers to direct efforts and resources in the most effective and efficient wa$ to increase bank business in the #on! run and encoura!e their bank customersA to adopt nternet bankin!. &ank mana!ers can make use of such information to deve#op appropriate strate!ies to attract new customers to use nternet bankin! services

13. Bishbein and .:6en (19@3) deve#oped a theor$ of reasoned action used to e'p#ain human behavior. The$ studied the behaviora# intention can be e'p#ained b$ the attitude towards behavior and sub:ective norm. The attitude towards behavior is defined as an individua#As positive or ne!ative fee#in!s (eva#uative effect) about performin! the tar!et behavior. This su!!ests that a centra# factor in human behavior is behaviora# intention, which is affected b$ attitude toward behavior, sub:ective norm, and perceived behaviora# contro#. This construct ref#ects how peop#e perceive the interna# and e'terna# #imitations to their behavior. t refers to how eas$ or difficu#t peop#e be#ieve it wou#d be to perform certain behaviors.

1>. "hon!et a#, (2+1+) ana#$6e the factors which inc#ude perceived usefu#nessF perceived ease of use, trust and !overnment support shows an$ affect to adopt on#ine bankin! services in Iietnam. Their stud$ emphasi6e to use on#ine bankin! service are perceived usefu#ness, trust and !overnment support these shows a si!nificant impact and perceived ease of use was found insi!nificant accordin! to techno#o!$ acceptance mode#.

1@. .desina .deronke . (.pri# 2+11) has provided an awareness of the factors that determine usersA acceptance of information s$stems usin! e9bankin! as the focus. &$ e'tendin! T.M, the authors been ab#e to support the ar!ument b$ other researchers who c#aimed that perceived usefu#ness and perceives ease of use is not sufficient to determine the consumerAs behaviora# intention to use information s$stem. The resu#t of this stud$ c#ear#$ ref#ects that users find e9bankin! s$stem usefu#, convenient, and eas$ to use. 4erceived usefu#ness is the critica# factor in e'p#ainin! usersA adoption of e bankin!. "redibi#it$ of the s$stem is a ma:or concern for both users and intendin! users and shou#d be !iven more attention.

18. Mir6a et a#, (2++9) investi!ate empirica##$ the internet bankin! adoption b$ ranian customers. Bor the data co##ection the surve$ 0uestionnaire has to be used which e'amine the variab#es inc#udes demo!raphic, behaviora# and attitudina# characteristics of user and non users of Me##at bank customers from !overnmenta# sectors towards nternet bankin!. Bor this factors ana#$sis and #o!istic 8e!ression techni0ues has to be

app#ied and the resu#t shows that there is si!nificant difference between demo!raphic profi#e and attitudes of users and /on users !roups and most of the customer are ea!er to use nternet bankin! services and the most famous adopted channe#s are &ranch counter. The main obstac#es to adopt nternet bankin! services are #ack of techno#o!ica# know#ed!e, securit$ concern and awareness.

19. /our9Mohammad Ja!houbi (2+1+) stud$ was conducted to identif$ determinants of user adoption of on#ine bankin! services amon! citi6ens of sfahan province ( ran). The causa# re#ationships amon! the variab#es that determine internet bankin! services adoption were e'amined. The resu#ts show that the proposed mode# has !ood e'p#anator$ power and confirms its robustness in predictin! customersA intentions to use such services and demonstrated that on#ine bankin! services adoption can be e'p#ained in terms of perceived behaviora# contro#, perceived usefu#ness, perceived ease of use, sub:ective norm and attitude. The under#$in! framework used in this stud$ is the inte!rated mode# of Techno#o!$ .cceptance Mode# and Theor$ of 4#anned &ehavior.

2+. )an! et a#. (2++2) mentioned that in the internet bankin! conte't, the #ack of perceived credibi#it$ is noticeab#e in individua#s concerns that the internet bankin! ma$ use their persona# information for its own propose without takin! their permission. ,sin! the techno#o!$ acceptance mode# (T.M) as a theoretica# framework, this stud$ introduces Cperceived credibi#it$D as a new factor that ref#ects the user1s securit$ and privac$ concerns in the acceptance of nternet bankin!. t a#so demonstrates the si!nificant effect of computer se#f9efficac$ on behaviora# intention throu!h perceived ease of use, perceived usefu#ness, and perceived credibi#it$.

21. ?errard et a#. (2++>) found that customers who have never bou!ht over the nternet were more #ike#$ to continue to use traditiona# wa$s of sourcin! their bankin! services. %tud$ revea#s that ease of use seems to be one of important to use internet bankin!, which ma$ be re#ated to customer apprehension about the efforts re0uired to #earn to use internet bankin! and customer interest in new services provided b$ internet bankin!.

22. Tomiuk and 4insonneau#t (2++1) e'amine the re#ationships between customers trust and customersA #o$a#t$ in the conte't of nternet &ankin!. The$ found that e#ectronic bankin! usa!e had a considerab#e effect on customer #o$a#t$ amon! the e#ectronic bankin! users, whi#e it had a ne!ative impact on non9users. t was conc#uded that customer care and customer retention shou#d be taken into consideration, because the convenient, eas$ and fast bankin! services is associated with the human and techno#o!$ based de#iver$ processes so that the$ are #inked with the customers1 perceptions of how these bank services are de#ivered to them

22. %tewart (1999) c#aimed that the fai#ure of the internet in retai# bankin! is #ar!e#$ attributab#e due to the #ack of trust consumers have in the e#ectronic channe#s. 4rovision of infrastructura# faci#ities is another factor that cou#d #ead to 0uicker diffusion of innovation.

25. 4atsiotis et a# (2+12) stud$ e'amines internet bankin! adoption and resistance behavior in ?reece in order to deve#op profi#es of adopters and non9adopters of the service. %tud$ revea#s three se!ments across these se!ments adopters and non9 adopters were found to have different characteristics. )ith re!ard to demo!raphics, on#$ income was found to be associated with se!ment membership.

23. ?eetha et a# (Io#2) investi!ates the factors which are affectin! the acceptance of e9 bankin! services amon! the customers and a#so indicates #eve# of concern re!ardin! securit$ and privac$ issues in ndian conte't. The findin! depicts man$ factors #ike securit$ and privac$ and awareness #eve# increased the acceptance of e9bankin! services amon! ndian customers. The stud$ shows that customers are more re#uctant to :oin new techno#o!ies or methods that mi!ht contain #itt#e risk. Hence, banks shou#d desi!n the website to address securit$ and trust issues.

2>. Hamidre6a %aeednia et a# (2+12) stud$ aimed to determine factors affectin! c#ient trust in the conte't of on#ine bankin!. The$ e'amine the effect of variab#esF securit$, privac$, usabi#it$, and reputation, perceived b$ customers, on c#ient trust in on#ine bankin!.The resu#ts present securit$ and privac$ inf#uence direct#$ and si!nificant#$ trust in the conte't of on#ine financia# business.%tud$ showed that perceived

reputation, perceived securit$ in hand#in! private data, and perceived usabi#it$ affects c#ient trust in the conte't of on#ine bankin!. These resu#ts indicate the behavioura# difference between users in different popu#ations that imp#$ diverse trust9makin! processes within c#ients.

2@. .mini et a# (2+11) stud$ indicate that perceived usefu#ness and computer se#f efficac$ were the main factors inf#uence nternet bankin! acceptance. 8ecommend to banks mana!ers to #earnin! customer how to use computer and nternet bankin! and advertisin! about nternet bankin! benefit and its advanta!es. .nd with re!ard to importance of "omputer se#f9efficac$, banks can promotion of customer abi#it$ about work with computer b$ proper advertisin!. 28. Hernande6 G Ma6on (2++@) showed that the variab#es that inf#uence the intention to use internet bankin! are not e'act#$ the same as those that inf#uence actua# adoption. 8esu#t seems to su!!est that intention to use & is inf#uenced, whi#e its actua# adoption is inf#uenced a#so b$ individua# character

29. .ccordin! to 4o#ato!#u and *kin (2++1), as more and more banks in Turke$ offer the nternet bankin!, the !reater the awareness #eve# amon! consumers and therefore the hi!her wi## be nternet bankin! adoption. &esides awareness, the services provided b$ the banks shou#d be perceived to be innovative with hi!h 0ua#it$ and user friend#iness to meet an individua#As e'pectation.

2+. %ath$e (1999) stud$ showed that securit$ concerns and #ack of awareness about internet bankin! and its benefits stand out as bein! the obstac#es to the adoption of internet bankin! in .ustra#ia. Burther su!!ests that de#iver$ of financia# services over the internet shou#d be a part of overa## customer services and distribution strate!$. These measures cou#d he#p in rapid mi!ration of customers to internet bankin! resu#tin! in considerab#e savin!s in operatin! costs for banks.

21. Tero 4ikkarainen et a# (2++5) deve#op a mode# indicatin! on#ine9bankin! acceptance amon! private bankin! customers in Bin#and. The findin!s of the stud$ indicate that

perceived usefu#ness and information on on#ine bankin! on the )eb site were the main factors inf#uencin! on#ine9bankin! acceptance.

22. Marvin *. ?on6K#e6 et a# (2++5) investi!ated the customer satisfaction research usin! the techni0ue of Lua#it$ Bunction ;ep#o$ment Techni0ue Bramework and it predicted that research on the service 0ua#it$ and customer satisfaction has become hi!h#$ si!nificant in service industries ..pp#ication of ")L ("ustomer )indow Luadrant ) and .ction 4#an Matri' he#ps in the ana#$sis of customer and service e#ements.

22. .wam#eh,(2++>) stud$ , ana#$6ed internet bankin! channe#s and the service preferences of the educated bankin! customers in ,.* and e'amined the various factors that inf#uence the intention of the customers to adopt or continuous#$ avai# and uti#i6e the internet bankin! b$ both users and the non9users of nternet &ankin!. Techno#o!$ .cceptance Mode# (T.M) was used in this conte't to identif$ the factors that inf#uence the intention to adopt bankin! services. %tud$ revea#ed that re#ative usefu#ness, perceived risk and ima!e has si!nificant impact on the usa!e of nternet &ankin! b$ users and resu#t demonstrabi#it$ were on#$ ones si!nificant for non9users of nternet &ankin! .&esides this ,e'p#oration of effects of a!e , income and income were a#so seen

25. Maumbe (2++>) stud$ found that deve#opin! nations need to improve the educationa# standards and computer #iterac$ prior to broad based adoption and the constructive use of the internet services as those se!ment of customers who are poor and unemp#o$ed remain disadvanta!ed in terms of access and avai#abi#it$ to the rura# bankin! services due to #ack of awareness. 23. Ma#hotra,4oo:a and %in!h (2+1+) e'amined various factors affectin! the bankin! services in ndia .The purpose of the stud$ was to he#p in fi##in! the !ap in know#ed!e about &ankin! (andscape in ndia..The stud$ revea#ed that bankers as we## as societ$ perceive that bankin! services #a! in terms of providin! different products and services.

2>. ?an et a#. (2++>)conducted a research to e'amine consumers1 choices between

e#ectronic bankin! and non9e#ectronic bankin! in /ew Eea#and .The decision to use e#ectronic bankin! was h$pothesi6ed as function of service 0ua#it$ dimensions, perceived risk factors, user input factors, price factors, service product characteristics, individua# factors and demo!raphic variab#es such as a!e, !ender, marita# status, income, etc. The findin!s in the paper showed that the output from the #o!istic re!ression indicated that the service 0ua#it$, perceived risk factors, user input factors, emp#o$ment, and education are the dominant variab#es that inf#uence consumers1 choice of e#ectronic bankin! and non9e#ectronic bankin! channe#s.

2@. )hite and /te#i (2++5) conducted a stud$ that focused on wh$ the increase in nternet users in the ,- had not been para##e#ed b$ increases in the securit$ and the safet$ aspects of the nternet. nternet usa!e for bankin! purposes. Their resu#ts showed that customers sti## have concerns with

28. /anc$ et a#. (2++1) stud$ found that customersA comp#ain about computer #o!on times which are usua##$ #on!er than makin! a te#ephone ca##. n addition, respondents fe#t that the$ have to check and recheck the forms fi##ed in on#ine, as the$ are worried about makin! mistakes.

29. (iao and "heun! (2++2) found that individua# e'pectations re!ardin! accurac$, securit$, transaction speed, user friend#iness, user invo#vement and convenience are the most important attributes in the perceived usefu#ness of nternet9based e9retai# bankin!.

5+. ?errard and "unnin!ham (2++2) found a positive corre#ation between convenience and on#ine bankin! and remarked that a primar$ benefit for the bank is cost savin! and for the consumers a primar$ benefits is convenience.

51. %ana6 and .#i (2+12)stud$ revea# that the use of internet for work or teamwork, se##in! or bu$in!, finance activities or bankin! operationsF and readin! news have si!nificant re#evance to the nternet &ankin! adoption, but usin! the nternet with the purpose of havin! fun and entertainment and seekin! commercia# information do not

have si!nificant effect on nternet &ankin! acceptance. .#so, it was found usin! nternet for readin! news and hedonic !oa#s have ne!ative effect on acceptin! nternet &ankin!. <ther purposes of usin! the nternet which were e'amined in this stud$ had positive effect on nternet &ankin! adoption in ran.

52. &ussakorn G ;ieter (2++3) The attitudina# factors that appear to encoura!e the adoption of internet bankin! in Thai#and most are CBeatures of the web siteD and C4erceived usefu#nessD, whi#e the most si!nificant impediment to adoption is a perceived behavioura# contro#, name#$ C*'terna# environmentD. The si!nificant moderatin! factors are !ender, educationa# #eve#, income, internet e'perience and internet bankin! e'perience, but not a!e.

52. %aro: G /eha (2+1+) investi!ates the factors which are affectin! the acceptance of e9 bankin! services amon! adu#t customers and a#so indicates #eve# of concern re!ardin! securit$ and privac$ issues in ndian conte't. The findin! depicts man$ factors #ike securit$ Gprivac$, trust, innovativeness, fami#iarit$, awareness #eve# increase the acceptance of e9bankin! services amon! ndian customers and shows that in spite of their securit$ and privac$ concern, adu#t customers are wi##in! to adopt on#ine bankin! if banks provide him necessar$ !uidance.

55. %a#ari G %a#a:e!heh (2+11) ana#$sis the factors affectin! the acceptance of nternet bankin! at Me##at bank branches in sfahan cit$. The$ used the modified mode# of techno#o!$ acceptance mode# (T.M). %tud$ show that, acceptance of nternet bankin! main#$ affected b$ trust, perceived ease of use, perceived usefu#ness, and attitude and tend to use.

53. -ha#fan et a# (2++>) main findin! of the stud$ is that securit$ and data confidentia#it$ issues have been a ma:or barrier. The bankin! sector was re#uctant to use e9commerce app#ications as the$ fe#t that transactions conducted e#ectronica##$ were open to hackers and viruses, which are be$ond their contro#. (ack of top mana!ement support was found to be an inhibitin! factor in the adoption of e#ectronic commerce app#ications. n !enera#, banks in the .rab ?u#f re!ion have been 10uite s#ow1 to #aunch e9bankin! services. )hi#e the$ are convinced that on#ine services reduce

overheads si!nificant#$, a mi'ture of customer insecurities, techno#o!$ investment costs and a #ack of market9readiness have a## conspired to make e9bankin! 1unattractive.