EXAMINING THE FACTORS AFFECTING INTERNET BANKING ADOPTION IN GHANA: THE CUSTOMERS’ PERSPECTIVE

ABSTRACT
In order to ensure effective delivery of products and services to their target customers, Ghanaian banks have adopted Internet banking services into their operations. This “self-service” channel relieves bank customers the hustle of visiting the bank halls regularly. The adoption of this Internet technology has changed the way businesses are conducted in Ghanaian banks. The expectation of the banks that have adopted this channel is that customers will utilize this new innovation to do most of their banking transactions. However, the rate at which Ghanaian bank customers adopt Internet banking is nothing to write home about. The study examines the factors that affect Internet banking adoption in Ghana. With the use of Unified Theory of Acceptance and Use of Technology (UTAUT) as the research model, one hundred (100) Ghanaian bank customers who used Internet banking were interviewed. The data was analysed with the use of Structural Equation Modelling (SEM). The results revealed that factors such as performance expectancy, social influence, perceived risk and facilitating conditions influence the behavioural intentions of customers in Ghanaian banks to adopt Internet banking. Additionally, the two constructs namely the perceived risk factor and behavioural intentions also affect the way customers use internet banking channel in Ghanaian banks (p < 0.01).


CHAPTER ONE
INTRODUCTION 
1.0       Background of Study
Technology adoption over the years has changed the way services are provided in Ghanaian banks (Abor, 2005). The adoption of these technologies by the financial institutions such as the banks has brought a lot of improvements in the way businesses are conducted in these institutions. According to Hanafizadeh et al., (2013b), the adoption of technology has helped many banks to compete favourably in this technological age.

In order to target the needs of all kinds of customers by paying equal attention to the specific needs of each group, Ghanaian banks have adopted internet banking channel into their operations. Internet Banking is a service that enables subscribers to perform most of their banking needs anywhere internet is available with the exception of cash withdrawal (Ayvaz et al., 2011). This banking channel is impacting positively in the Ghanaian banking sector because it can be used to serve customers at any part of the world within the 24-hours.

According to Zarafat (2013), the usage of this banking channel is now prevalent because with it banking becomes stress-free. For example, customers can use this internet banking to perform many of the banking services (Tan, 2000).

There are many advantages that the banks as well the customers could derive from the adopting of internet banking channel. However, factors like security issues, perceived risks, and accessibility to the internet sometimes influence the way customers adopt new technology like Internet banking (K & Ramayah, 2012; Lee, 2008). This research examines the issues affecting customers that use this banking service in Ghanaian banks.


1.1       Problem Statement
Organisations and individuals invest a lot of resources before they are able to come out with new innovation. Banks invest a lot of resources in Internet banking with the expectation that the intended users will accept it with ease. The adoption of this banking channel has helped the banks to cut down on their operational costs and also serve their cherished customers in a timely manner.

Ghanaian banks have accepted Internet banking because of its usefulness in this technological age. According to Akuffo-Twum ( 2011), there are nineteen banks in Ghana that have accepted this banking channel into their operations. The study further revealed that the adoption of this banking service has the possibility of changing how Ghanaian banks work. However, attitude of customers in Ghanaian banks towards the usage of Internet banking is nothing to write home about.

1.2       Main Objective
The study will examine the factors affecting the adoption of Internet banking usage within Ghanaian banks. The goal can be achieved by focusing on the following objectives:

To examine how factors like performance expectancy, effort expectancy, facilitating conditions, price value, social influence and perceived risk affect Internet Banking adoption in Ghanaian banks

To examine whether or not the above constructs have influence on behavioural intentions

To examine whether Behavioural Intentions have effect on internet banking usage


1.3       Research Questions
The following questions will be researched into:

What are the effects of performance expectancy, effort expectancy, facilitating conditions, price value, social influence and perceived risk factors have on Internet Banking adoption in Ghana?

What are the effects of the above constructs on behavioural intention?

What are the effects of behavioural intentions on internet usage?

1.4       Significance of the Study
The use of technology can save a life. The use of technology like internet banking can minimize the number of times a customer goes to his or her bank to transact business. This can help to reduce traffic on our roads and also save people from getting involved in road accident because customers can access their bank accounts at the comfort of their homes. Productivity might be increased due to the fact that many customers will not spend most of their working hours at the banking halls. With the usage of Internet banking, customers will have the flexibility to transact most of the banking services at any time of the day in any part of the world where Internet is available.

Technological innovations have come to reduce the stress that customers usually go through in most banking halls (Morris et al., 2003). The introduction of Automated Teller Machine gave bank customers the opportunity to banking outside the banking halls at their own time. The banks in Ghana have adopted Internet banking in their operations because of its usefulness in this global village. According to Zarafat (2013), internet banking makes transactions easy, and most of the banking transactions could be performed with the exception of physical cash withdrawal (Tan, 2000; Liao et al., 1999). It is the belief of Abor (2005) that this banking service saves a lot of cost.

The acceptance of IB channel by banks in the developed economies such as United States of America has served as eye opener to many bank customers. It is for this reason that the banks in Ghana have taken the bold step by adopting this banking channel into their operations. The banks that have taken the steps to introduce this innovation into their operations have created a niche for themselves in the Ghanaian banking sector.

1.5       Scope and Limitations of the Study
The attention of the study will focus on Ghanaian banks that offer internet banking services. And the research investigations will concentrate on customers that use Internet banking.

1.6       Thesis Organisation
This work will consist of the following chapters:

Chapter 1: It will cover the introduction of the study by focusing on the background, statement of the problem, the general and the specific objectives of the study, the research questions, and the significance of the study. Chapter 2: In this chapter, the Literature Review of the study will be discussed. Chapter 3: The chapter will look at the methodology and instruments that will be adopted for the study. Chapter 4: This is where the results of data will be examined, analysed and the findings highlighted. Chapter 5: The chapter provides the summary of the research, the contribution, and the recommendations for further studies.

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Item Type: Ghanaian Project Material  |  Attribute: 72 pages  |  Chapters: 1-5
Format: MS Word  |  Price: GH50  |  Delivery: Within 30Mins.
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