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82 Int. J. Electronic Finance, Vol. 7, No.

1, 2013

Factors affecting internet banking adoption among


internal and external customers: a case of Pakistan

Syed Ali Raza*


IQRA University,
Karachi-75300, Pakistan
and
Chartered Institute of Management Accountant,
UK
E-mail: syed_aliraza@hotmail.com
*Corresponding author

Nida Hanif
IQRA University,
Karachi-75300, Pakistan
E-mail: nida_hanif25@yahoo.com

Abstract: This study investigates the determinants which attract the customers
to adopt internet banking in Pakistan by employing internal and external
customers, on the sample size of 210 for internal and 151 for external
respondents through using the survey research instrument questionnaire. The
confirmatory factor analysis with multiple regressions technique has been
applied. The result of regression analysis shows that perceived usefulness (PU),
information of internet banking (INF), perceived risk (PR), security and privacy
(SP) shows more influence to increase the intention of external customers to
adopt internet banking services while government support (GS) provide more
influence for the internal customers in adoption of internet banking services.
This study proves that external customers can be more emphasised, if they
believe in convenience in adopting the services. It is recommended that banks
should take some consideration to apply internet banking by delivering the
information in an easiest way, provide more usefulness and benefits and also
minimise the fraud as providing more security and privacy. This will help the
bank to increase their profit by reducing its cost, time saving and retain more
potential users.

Keywords: e-banking; e-finance; internet banking; technology acceptance


model; TAM; factor analysis; multiple regression; convenience; perceived
usefulness; information of internet banking; perceived risk; security and
privacy; government support.

Reference to this paper should be made as follows: Raza, S.A. and Hanif, N.
(2013) ‘Factors affecting internet banking adoption among internal and
external customers: a case of Pakistan’, Int. J. Electronic Finance, Vol. 7,
No. 1, pp.82–96.

Biographical notes: Syed Ali Raza is associated with Iqra University as a


Lecturer and Research Associate. Currently, he is pursuing his PhD in Finance.
He is an Associate Chartered Management Accountant (ACMA) from UK and

Copyright © 2013 Inderscience Enterprises Ltd.


Factors affecting internet banking 83

did his MBA in Finance from Iqra University. He brings an experience of more
than eight years of corporate world working at various management positions.
His areas of interest include quantitative methods in research, cost and
management accounting, financial management, enterprise management and
financial markets.

Nida Hanif is a business graduate of Iqra University. Currently, she is doing


MBA in Finance and looking for PhD studies in future.

1 Introduction

Banking is the only sector in which every deal they performed or activities done are
beneficial for its own development and for the country economy as well. Nowadays, the
revolution of information technology has influenced almost every part of life. Among
them is the banking sector. Today, introduction of electronic banking has been more
revolutionised and contribution of technology is considered to be the main reason for the
organisation’s success and for their core competency.
Electronic banking, e-finance or e-commerce (Nazir et al., 2011), is the application of
information technology (IT) which helps to facilitate the information and services over
public standards-based networks (Khalid, 2010). There are different forms of electronic
banking which include online/internet banking, mobile banking and telephone banking.
Internet banking service is a wider part of electronic banking services.
Kesseven et al. (2008) explain internet banking as a system which allows the
individuals to perform banking activities at home, via the internet. As internet banking is
one of the key routes to increase financial transaction market shares and make long term
relationship with the customer’s. The internet banking was initiated first in the 80s, but its
growth across the globe took place in the 90s and Europe has become a leader in the
usage of internet banking services (Schneider, 2001).
IB offers many services which are beneficial for the customers after getting the IB
facilities which includes; carry out information, online payments, balance inquiry, utility
bills payment, ticket booking, shopping through cards, prepaid mobile recharge,
investment services, market watch, online transfer of fund, request check book and
credit\debit of accounts through IB etc. (Daniel, 1999; Mols, 1998; Sathye, 1999), and
allow customers to perform banking transactions anytime at 24/7. As well as IB also
eliminates unnecessary waste of money that an organisation incurs in a form of human
resources and office supplies.
As Polatoglu and Ekin (2001), Black et al. (2002), Howcroft (2001) and Khan
(2007–2009) argued, in Pakistan, most of the banks introduce IB and turning towards
more competitiveness by upgrading their technologies and services. This system can be
adopted by most of the international as well as local banks in Pakistan because of
associated vital benefits like time and cost effectiveness. In the year of 2006, many
commercial banks were opening online branches in the second quarter of the fiscal year.
Now, total existing bank branches are 9,483 out of which 7,036 bank branches is now
84 S.A. Raza and N. Hanif

offering the real time online banking (RTOB) services and through internet Rs 44.75
billion were transacted (SBP, 2011).
Most studies have been conducted to analyse the determinants which influence to
adopt IB on the basis of customer’s (end users) perspective independently. But the studies
have not been analysed separately in a way by considering both the views of internal
customers (bank employee) and external customers towards the acceptance of IB.
Because internal customers have more awareness about transactions, information and the
services offered by the banks, that external customers are unaware, the objective of this
study is conducted individually for identifying the main factors which influence the
internal and external customers to adopt IB.

2 Literature review

In this section after summarising the theoretical background, empirical studies are
reviewed.

2.1 Theoretical background


Since its introduction, IB gained much importance and priority as well as highlighted
special attention towards the customers and employees that increase the usage of these
services. Researchers have applied numerous theories to identify potential factors which
influence the people to adopt IB. Some of the theories include: the technology acceptance
model (TAM), the theory of reasoned action (TRA), the theory of planned behaviour
(TPB); (Shih and Fang, 2004; Taylor and Todd, 1995), the theory of innovation diffusion
and user gratification.
As Ajzen and Fishbein (1975), Davis (1989) and Sadeghi and Farokhian (2011)
argued, TAM model has been adopted from the TRA model. TAM is the multivariable
model that predicts the user’s intention on the basis of their perception, which includes
five main conception; perceived usefulness (PU) and ease of use, intention to use, actual
use and attitude to use IB. The research model can be hypothesised on consumer
behaviour factors which are: service quality, relative advantage, convenience,
compatibility, complexity, trialability, privacy, trust, security, attitude and belief, risks,
habit, familiarity, lack of awareness, adaptability, consumer, organisation, confidence,
technology and computer, channels characteristics. All of these factors can directly
influence the customers to adopt the services.

2.2 Empirical studies


In this section, some selected literature has been reviewed on the impact of different
factors on IB adoption of internal and external customers.
Factors affecting internet banking 85

Table 1 Collection of empirical studies

Authors Topic Techniques Finding Recommendation


Akhlaq and Internet banking in For this the traditional The analysis result show 67% of the proposed It is recommended that bank should
Shah (2011) Pakistan: finding innovation diffusion model complexities due to familiarity with the focus on the internet banking usage
complexities (IDT) has to be used and internet technology, download speed, website among its customers because their
the selected survey sample design unfriendly, people gaining easy Access, costs associates are much lower
are n = 45 and the selected Misusing of information, security, Fear of than Traditional system.
test is chi-square test Government tracking transactions, hinder the
users in accepting internet banking services.
Amini et al. Adoption of internet Questionnaire, The finding result shows that the perceived It helps the bank manager, how to
(2011) banking by Iranian confirmatory factor usefulness and computer self efficacy are the use computer and internet banking
customer: an analysis, Pearson main factors that influence to accept the and advertising about its benefit and
empirical correlation testing, multiple internet banking its advantages. And with regard the
investigation regressions and tested importance of Computer self-
correlations between efficacy, banks can promotion of
variables customer ability about work with
computer by proper advertising.
Eze et al. (2011) Factors affecting Questionnaire, factor Results shows that Perceived ease of use, It helps the banks to better
internet banking analysis perceived usefulness, perceived credibility, understand young adults’ behaviour
adoption among relative advantage, trialability and self in Malaysia with respect to internet
young adults: efficiency are more influence to adopt internet banking. This could enable banks to
evidence from banking formulate effective techniques to
Malaysia attract this group to use this service
Nasri (2011) Factors influencing Questionnaire, factor Internet banking usage is much persuaded by The bank should take some steps to
the adoption of analysis with multiple the factors risk, convenience, security and also upgrade their security, low risk and
internet banking in regression prior internet knowledge. Only one factor does prior internet knowledge for making
Tunisia not show any impact which is Information of the good marketing strategy
online banking. Demographic factors show
significantly impact on the behaviour to use
internet banking (especially occupation and
instruction)
Safeena et al. Internet banking Questionnaire, factor The result shows that the perceived usefulness, By using a longitudinal study in the
(2011) adoption in an analysis with multiple perceived ease of use a perceived risk are the future which help to identify the
emerging economy: regression most important factors for the adoption of research model in different time
Indian consumer’s online banking and also help to make a periods and make comparisons and
perspective strategy formulation process thus providing more views into the
phenomenon of the adoption of
online banking.
86 S.A. Raza and N. Hanif

Table 1 Collection of empirical studies (continued)

Authors Topic Techniques Finding Recommendation


Chong et al. Online banking Correlation and multiple The results prove that perceived usefulness, It suggests the bank to develop new
(2010) adoption: an regression analysis trust and government support shows a directions, good strategies and also
empirical analysis significant impact and perceived ease of use improve the privacy and security
was found insignificant according to which helps to develop trust for
technology acceptance model using the website services. Apart of
that government play a significant
role to increase the adoption of
online banking services?
Malhotra and Investigates the Multiple regression The results show that the private and foreign This research helps to fill the gaps
Singh (2010) most impacting technique banks have performed well in offering wider in knowledge about the internet
factors of internet services of internet banking in comparison of banking landscape in India. The
banking service in public sector banks. Among the determinants findings are expected to be of great
India affecting the extent of internet banking use to the government, regulators,
services, size of the bank, experience of the commercial banks, other financial
bank in offering internet banking, financing institutions, e.g., cooperative banks
pattern and ownership of the bank are found to planning to offer internet banking,
be significant. bank customers and researchers.
Ho and Lin Investigate to Factor analysis technique The main dimension is five which is customer This helps the bank to improve the
(2010) measure the services service, assurance, web design, information customer’s satisfaction, create loyal
quality of internet provision and preferential treatment and in customers and build customers
banking for measurement scale includes 17 items. trust. This paper adapts an e-service
developing the quality model to measure internet
multiple item scale banking service and this is more
suitable than that of traditional
service quality model
Yaghoubi and Investigate the Survey questionnaire and The results show that the intention for using the It provides integrate the TAM and
Bahmani (2010) factors which affect structural equation internet banking service is strongly affected and TPB model and confirm its
to adopt Internet modelling has to be used influenced by perceived behavioural control robustness towards online banking
Banking services in and perceived usefulness. adoption.
Isfahan province of
Iran
Factors affecting internet banking 87

Table 1 Collection of empirical studies (continued)

Authors Topic Techniques Finding Recommendation


Burcu et al. Who uses internet Discriminate analysis The analysed main factors are five in which The discriminate analysis carried
(2009) banking in Turkey technique trust and security are found significant factors out reveals clues for bank
and why for using the internet banking services managers about how to identify
potential internet bank users. This
is important because it could be a
good idea to implement strategies
to motivate probable non-users to
at least try to use internet banking
as a first step
Mirza et al. Investigate Factors analysis and The results show that there is significant This study provides some of the
(2009) empirically the logistic regression difference between demographic profile and perceived factors which are found
internet banking techniques has to be applied attitudes of users and non-users groups and significant to adopt, baseline data
adoption by Iranian most of the customer are eager to use internet for further research and account
customers banking services through Branch counter. The updated of Iranian customers.
main obstacles to adopt internet banking are
lack of technological knowledge, security
concern and awareness
Gounaris and Investigating the Confirmatory factor The finding shows that PCI gives the better It is recommend that any addition
Koritos (2008) drivers of internet analysis and logistic results in forecasting the consumer adoption of of psychographics and consumer
banking adoption regression analysis IB as compare to other TAM and DOI demographics in the overall Logit
decision: a model give further improvement in
comparison of three the results. The characteristics of
alternative non-usability innovations are the
frameworks important factors of consumer
adoption.
Singhal and Study on customer Questionnaire, factor Factor analysis results indicate that utility More than 50% respondents accept
Padhmanabhan perception towards analysis request, security, utility transaction, ticket that internet banking is more
(2008) internet banking: booking and fund transfer are major factors flexible, easily accessible and more
identifying major convenient system to satisfy our
contributing factors customers.
88 S.A. Raza and N. Hanif

3 Methodology

After reviewing the theoretical and empirical studies, the model to examine the factors
that influence the bank customers to adopt internet banking in Pakistan is given below:
IB =∝ + β1 (Con) + β 2 ( PU ) + β 3 ( Inf .IB) + β 4 ( PR ) + β 5 ( SP ) + β 6 (GS ) + ε

where IB is IB intention, Con is convenience, PU is perceived usefulness, Inf. IB is


information online banking, GS is government support, PR is perceived risk, SP is
security and privacy, ε is error.
Ho1 = Convenience does not show a positive response for adoption of IB.
Ho2 = PU does not show a positive response for adoption of IB.
Ho3 = information of IB does not show a positive response for adoption of IB.
Ho4 = Low PR does not show a positive response for adoption of IB.
Ho5 = High SP does not show a positive response for adoption of IB.
Ho6 = GS does not show a positive response for adoption of IB.
For this study, descriptive plus correlational research is to be applied as by adopting
quantitative approach, which helps to collect the respondent data in an appropriate way.
According to this purpose, survey research instrument; ‘Questionnaire’ was selected to
access different outlook of people view, attitude and behaviour. The adopted
questionnaire involves attributes of the variables based on prior research and is designed
through Likert scale (1 to 5). In this study, questions are taken from prior research like
intention to use as dependent variable (Kasheir et al., 2009; Nasri, 2011), conveinence
(Davis, 1989; Nasri, 2011), PU (Kasheir et al., 2009; Ho and Lin, 2010), information on
IB (Chau and Ngai, 2010), PR (Kasheir et al., 2009; Nasri, 2011), SP (Ho and Lin, 2010;
Nasri, 2011) and GS (Chong et al., 2010). The data for this study is based on random
sample and the sample size of internal respondent is 210 and 151 for external
respondents. The data can be collected by those people who work in the banks as well as
external customers or end users of IB service.

4 Data analysis

In this study section we analyse the main factors throughout getting the perspective of
internal and external bank customers through factor analysis. Factor analysis assists in
reducing a large set of data into a smaller number of components that involve some
associated variables (Pallant, 2005).
A confirmatory factor analysis can be performed on the basis of principle component
matrix with varimax method. The Kaiser Meyer Olkin value was 0.901 for internal and
0.899 for external, which is higher than the recommended value of 0.8 which shows, data
sampling adequacy is good because it’s value is greater than 0.5. The result of Bartlett’s
(1954) test of sphericity is significant which support that; the data is appropriate for
making factor through correlation matrix. The loading factor values which are higher
than 0.4 indicates it is important and those loading values which are higher than 0.5
considered that those factors are practically significant (Kaiser, 1974); apart; the loading
Factors affecting internet banking 89

factors result of this study, shows significant because the values of all getting factors are
higher than 0.5. Chronbach’s coefficient alpha (α) was used to measure the internal
consistency of the data items. The alpha result of all items show high consistency and
load considerably well on its factor. The factors result of both data can be seen in Table 2
and Table 3.
Then multiple regression technique was applied on internal and external data after
factor analysis. The multiple regression technique helps to analyse the influence of
considered variables in the adoption of internet banking in Pakistan. Table 4 present the
regression result of internal respondents and Table 5 shows the regression results of
external respondents.

4.1 Factor analysis


Table 2 represents the internal factors result that shows a total of 27 items out of original
29 loaded on six factors. Factor 1 perceived ease of use (PEOU) contains nine items after
merging the two variable attributes because of correlation, having 88.8% excellent
reliability that measuring the importance of IB adoption with a variance of 53.12%.
Factor 2 information of IB (INF) contain four items having 89.5% excellent reliability
and with variance of 76.17%. PR factor loaded five items having 79.1% good reliability
with variance of 54.79%. Another three items measuring GS have 68.5% good reliability
with variance 61.86 %. While the fifth factor security and privacy (S&P) have three items
having 74.9% good reliability with variance 66.61% and the sixth factor intention to use
(INT) include three items having 75.3% good reliability with variance of 66.98%. The
total variance explained by the six factors is 64.064%.
Table 2 Rotated component matrix of internal respondent data

Items Loading Alpha


F1 – Perceived ease of use (PEOU)
Internet banking services provides helpful guidance in performing the task. 0.724 88.80
The transactional of internet banking is easy to use. 0.663
Interaction with internet banking is clear and understandable 0.674
I find it easy to recover the error encountered while using the internet banking 0.637
services.
Internet banking facilitates me to complete my banking activities quickly. 0.594
Using internet banking for doing banking transactions much easier. 0.532
Internet banking allows me to manage my finance efficiently. 0.669
Internet banking helps to increase customer’s productivity. 0.733
The services of internet banking enhance the Customers effectiveness on the job. 0.577
Variance = 53.12
F2 – Information on online banking (INF)
Internet banking provides believable/ reliable information. 0.766 89.50
Internet banking provides real time information. 0.826
Internet banking provides relevant information. 0.834
Internet banking provides information at the right level of details. 0.770
Variance = 76.17
Note: Total variance explained = 64.064%
90 S.A. Raza and N. Hanif

Table 2 Rotated component matrix of internal respondent data (continued)

Items Loading Alpha


F3 – Perceived risk (PR)
The risk of credit card fraud for internet transactions and payment is low for 0.698 79.10
customer.
I would feel free to submit my financial information Online because of low 0.688
risk.
By using the internet banking services, It protects Customer information 0.556
privacy.
There is a low probability to face the problem while making the internet 0.549
transaction online.
All operations through internet banking are guaranteed. 0.675
Variance = 54.79
F4 – Government support (GS)
Government encourages and promotes the usage of internet and e- 0.636 68.50
commerce.
The government is driving the development of internet banking. 0.760
The government has good laws and regulations for internet banking. 0.634
Variance = 61.86
F5 – Security and privacy (S&P)
Authorised username and password are important for securing the data. 0.783 74.9
I trust that transaction through internet banking is private and secure. 0.691
I am satisfied with the security system. 0.616
Variance = 66.61
F6 – Intention to use (INT)
I intend to use the internet banking it on a regular basis for achieving the 0.545 75.3
future results.
I intend to increase the usage of internet banking in the future. 0.715
I intend to robustly recommend others to use internet banking services. 0.661
Variance = 66.98
Note: Total variance explained = 64.064%
Table 3 represents the external factors result that shows a total of 24 items out of original
29 loaded on six factors. Factor 1, intention with convenience (INT/CON), contains eight
items after merging the two variable attributes having 92.3% excellent reliability with a
variance of 65.31%. According to the prior research intention and convenience were
considered to be separate but by applying confirmatory factor analysis they merged the
two variables into one (Nasri, 2011). Factor 2, information of IB (INF), contains four
items having 93.3% excellent reliability and with variance of 83.44%. PU factor loaded
three items having 79.5% good reliability with variance of 71.43%. Another three items
measuring GS have 73% good reliability with variance 65.79%. While the fifth factor PR
have three items having 84.1 % excellent reliability with variance 76.11% and the sixth
factor include three items, security and privacy (S&P) having 80.5% excellent reliability
with variance of 73.42% . The total variance explained by the six factors is 75.13%.
Factors affecting internet banking 91

Table 3 Rotated component matrix of external respondent data

Items Loading Alpha


F1 – Intention with convenience
I intend to use internet banking it on a regular basis for achieving the 0.698 92.3
desired future results
I intend to increase the usage of internet banking in the future 0.673
I will robustly recommend others to use internet banking (IB) services in 0.675
daily routine transactions
Using internet banking (IB), I can access anytime and anywhere 0.658
The internet banking (IB) services provides helpful guidance in performing 0.734
the task
The transactional of internet banking (IB) is easy to use 0.715
Interaction with internet banking (IB) is clear and understandable 0.711
I find it easy to recover the error encountered while using the internet 0.674
banking (IB) services
Variance = 65.31
F2 – Information of internet banking (INF)
Internet banking provides believable/reliable information 0.801 93.3
Internet banking provides real time information 0.844
Internet banking provides relevant information 0.874
Internet banking provides information at the right level of details. 0.757
Variance = 83.44
F3 – Perceived usefulness (PU)
Use of internet banking (IB) services can save customers time 0.77 79.5
Internet banking (IB) facilitates me to complete my banking activities 0.857
quickly
Using internet banking for doing banking transactions much easier 0.642
Variance = 71.43
F4 – Government support (GS)
Government encourages and promotes the usage of internet and e- 0.782 72.9
commerce
The government is driving the development of internet banking 0.784
The government has good laws and regulations for internet banking 0.607
Variance = 65.79
F5 – Perceived Risk (PR)
The risk of credit card fraud for internet transactions and payment is low for 0.816 84.0
customer
I would feel free to submit my financial information online because of low 0.595
risk
By using the internet banking (IB) services, it protects customer 0.671
information privacy
Variance = 76.11
Note: Percentage of total variance explained = 75.13
92 S.A. Raza and N. Hanif

Table 3 Rotated component matrix of external respondent data (continued)

Items Loading Alpha


F6 – Security and privacy (S&P)
Authorised username and password are important for securing the data 0.88 80.4
I trust that transaction through internet banking (IB) is private and secure 0.781
I am satisfied with the security system 0.526
Variance = 73.42
Note: Percentage of total variance explained = 75.13

4.2 Regression analysis


Table 4 represents the results of multiple regression analysis of internal customers of
banks. Results show the significant positive relationship of all considered variables
with internet banking adoption. The value of R2 is 44.6 that means the variations in
the output of internet banking adoption can be explained by around 45% through our
considered variables. Also the result shows that all factors are positively associated with
an adoption through coefficient outcome. These results accept the proposed hypothesis.
Table 4 Results of multiple regression analysis of internal respondent data

Variables Coefficient β t-stats Sig


(Constant) 0.752 2.531 0.012
PEOU 0.253 3.485 0.001
INF 0.123 2.202 0.029
PR 0.147 2.052 0.041
SP 0.147 2.07 0.04
GS 0.224 3.484 0.001
R .678
R2 0.446
F-stats 34.657
Sig 0.00

Table 5 Results of multiple regression analysis of external respondent data

Variables Coefficient β t-stats Sig


(Constant) –0.364 –1.245 0.215
PU 0.323 5.03 0.000
INF 0.206 3.416 0.001
PR 0.159 2.529 0.013
SP 0.268 4.053 0.000
GS 0.142 2.186 0.030
R .806
R2 0.637
F-stats 53.674
Sig 0.00
Factors affecting internet banking 93

Table 5 represents the results of multiple regression analysis of external customers of


banks. Results show the significant positive relationship of all considered variables with
internet banking adoption. The value of R2 is 63.7 that means the variations in the output
of internet banking adoption can be explained by around 64% through our considered
variables. All the factors of the model are associated positively in the adoption of IB.
These results accept the proposed hypothesis.
In addition, the results indicate that the perceived usefulness (0.253) and government
support (0.224) have the highest coefficients in internal customers’ model that shows
the highest influence of these two variables to adopt the internet banking in internal
customers. On the other hand, the results indicate that the perceived usefulness (0.323)
and security and privacy (0.268) have the highest coefficients in external customers’
model that shows the highest influence of these two variables to adopt the internet
banking in external customers. Apart of this GS coefficient shows more significant
impact on the intention of internal customers as compare to external customer’s
coefficient.

5 Conclusions

In this empirical research study, we analyse the main impacting factors which influence
the bank customer’s include (internal and external) to adopt IB services in Pakistan.
Design questionnaire helps to analyse the right perception. As regression analysis result
proves that all variables shows positive relationship on the intention but GS shows more
significant impact to increase the intention of internal customers rather than external
customers. While PU and information of IB (INF), PR and SP shows more significant
impact to increase the intention of external customers rather than internal customers. As
per external result, the customer’s intention is just like convenience. It is found that
usefulness and convenience of internet banking services are the most influential factors
for external customers to adopt internet banking in Pakistan.

6 Managerial and academic implications

In view of the above, it is recommended that the banks should focus on to increase the
usefulness and convenience of internet banking services to encourage the internal and
external customers of banks to adopt internet banking. The results of external customers’
model also suggest that the banks should focus more on increasing the levels of security
and privacy to encourage the external customers to use the internet banking services. This
technology helps the bank to increase the efficiency of work and minimise the error in the
banking activities. By getting all the facts and figures we have no doubt that the use of IB
in Pakistan will be enlarged and expanded and their importance can be seen by their
adoption.

7 Limitations of the study

First, the time available to complete this project was limited; therefore, I have not
covered all the cities and focused on the urban area only, as well as attempt had been
94 S.A. Raza and N. Hanif

made to narrow down the topic and to focus on the main city, Karachi, only, because the
people of this city are well educated, literate and understand the importance of e-banking
facility. Further public and employees of the banks are well knowledgeable. But the
actual results could be different if this research covered the rural and urban areas also.
Secondly, this research found four factors which influence the people to adopt IB but
there are many other factors found in the environment that impact among the customers
to adopt IB services.

8 Future research

The main motive of this study is to find those factors which influence the people to adopt
IB but there are still rooms for further investigations which remain unnoticed. In this
study, we have focused on only six variables which influence the customers of banks
to adopt internet banking in Pakistan. The future researchers may include more or other
variables in their research to understand the influence of such variables on internet
banking adoption. Second, increase the sample size of both customers which can show
more appropriate results. Third, to conduct the research through focus on both rural and
urban areas because nowadays rural areas also willing to get the IB services in terms of
transfer of fund and withdrawing money through ATM.

Acknowledgements

The authors would like to thank Syed Tehseen Jawaid (Assistant Professor, IQRA
University) for his helpful comments and stimulating suggestions.

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