Determinants of Internet Banking Adoption in Jordan

  •  Haneen A. Abu-Assi    
  •  Hani H. Al-Dmour    
  •  Zu'bi Al-Zu'bi    


The primary purpose of internet banking research is to investigate the factors that influence the E-Banking adoption of clients who have internet access. To develop a theoretical framework model in the context of this study, the literature that relates to the Technology Acceptance Model (TAM), Diffusion of Innovations (DOI), Technology Readiness Index (TRI) and their various adaptations were undertaken. Internet banking has been considered an innovative service, whose potential adoption by clients will be investigated. The model of this research purposes an extension to the latter models, which account for essential factors that affect the adoption of E-Banking services in Jordanian commercial banks.

The study population was identified as banking clients who regularly use their online banking system account. The study used the questionnaire survey method in order to test the hypotheses and to explore its implications. 350 questionnaires were disseminated to the research sample. Multiple Regression and One Way ANOVA tests were applied to test the research hypothesis.

The results show that compatibility, perceived ease of use, security and perceived usefulness positively affect internet banking adoption. Furthermore, this research adds a new component by studying the effect of all the independent factors together and identifies a positive relationship between them and internet banking adoption. Hence, synergistic relations between these factors should be secured in order to ensure their higher effect on internet banking adoption. In addition, the research demonstrates that all demographic categories studied have influenced internet banking adoption, indicating that they should be used to build the correct segmentation for consumers in order to develop proper marketing strategies.

Based on the findings of the research, a number of recommendations are presented to increase internet banking adoption among the Jordanian consumers. First, to enhance internet banking adoption, banks should combine the concepts of compatibility, perceived ease of use, perceived usefulness, and security into the online banking services concept in the stage of market planning and ensure proper synergy between these variables in order to increase the level of internet banking adoption. Moreover, both marketers and banks can utilize the demographic variables in order to improve their marketing activities for online banking. Finally, since the Jordanian financial system is going through a period of extensive change, the development process should not be linked to one specific bank or another, but instead all banks under the Central Bank of Jordan should try to build long-term strategies that include an awareness component in order to raise internet banking adoption awareness amongst Jordanian banking clients.

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