Adoption of Internet Banking in Greece, a Consumers’ Perspective
Pregkler Karolos
Student number: 317013kp
Master Thesis Economics and Informatics
Erasmus University Rotterdam
Supervisors:
Drs R. H. R. M. Aernoudts
Erasmus University Rotterdam
Drs R. van der Wal RA
Erasmus University Rotterdam
Abstract
This thesis examines adoption of internet banking by Greek consumers. The adoption rate of internet banking in Greece is significantly lower when compared to other European countries. After a review of existing literature on the adoption of information systems, the choice was made to use the Technology Acceptance Model (TAM). TAM is extended upon to incorporate a cultural factor, while it can play an important role and shapes consumers’ perceptions towards a technology thus affecting the intention to use and adopt a certain technology. The research instrument used is the questionnaire. In essence two different studies were conducted; the first in physical branches of three different banks and the second online. The results of the study confirm the ability of the extended TAM model to examine and analyze the adoption of internet banking by Greek consumers. Besides the two core constructs of TAM, perceived web security proves to be a significant determinant of the intention to use internet banking. Computer self-efficacy had a significant effect in the second study where as uncertainty avoidance was found to have a negative effect in the first study. Finally, the results provide directions for banks to improve their marketing strategies aiming for higher use of internet banking and in turn creating and realizing greater economic value.
Keywords: Technology acceptance model (TAM), Greece, internet banking, e-banking, culture, uncertainty avoidance.
1. Introduction 8
1.1 Motivation 13
2. Overview of e-Banking 14
2.1 Home Banking 14
2.2 Banking on the Internet 15
2.3 Transactions Over the Internet 18
2.4 Advantages of Electronic Banking from Banks’ Perspective 18
2.5 Advantages of Electronic Banking from Customers’ Perspective 21
3. Internet Banking in Greece 22
3.1 Ethniki Bank 23
3.2 Alpha Bank 23
3.3 EFG Eurobank-Ergasias 24
3.4 Piraeus Bank 24
3.5 Marfin Egnatia Bank 25
4 Literature Review 27
3.1 Overview of Models 28
3.2 Technology Acceptance Model 31
3.2.1 Introduction of TAM 31
3.2.2 Extensions of TAM 33
3.3 TAM Recently 35
3.3.1 TAM and Internet Based Information Systems 36
3.4 TAM and Internet Banking 38
3.4.1 Studies of Internet Banking Using Other Models 40
3.5 Technology Acceptance and Culture 41
3.5.1 Hofstede’s cultural dimensions 42
3.5.2 Culture and TAM 44
5. Model 46
5.1 Perceived Usefulness 46
5.2 Perceived Ease of Use 46
5.3 Computer Self-efficacy 47
5.4 Facilitating Conditions 48
5.5 Perceived Web Security 50
5.6 Uncertainty Avoidance 51
6. Research Method 54
6.1 Questionnaires 54
6.2 First Study 56
6.3 Second Study 57
6.4 Sample and Demographic Characteristics 57
6.4.1 First Study 57
6.4.2 Second Study 58
7. Analysis and Findings 60
7.1 Factor Analysis 60
7.1.1 Factor Analysis for the Perceived Ease of Use 60
7.1.2 Factor Analysis for the Perceived Usefulness 61
7.1.3 Factor Analysis for Perceived Web Security 62
7.1.4 Factor Analysis for Computer Self-Efficacy 63
7.1.5 Factor Analysis for Facilitating Conditions 64
7.1.6 Factor analysis for Uncertainty Avoidance 65
7.1.7 Factor Analysis for Intention to Use Internet Banking 66
7.1.8 Conclusions of Factor Analyses 67
7.2 Regression Analyses 67
7.2.1 First Study 67
7.2.2 Second Study 71
7.2.3 Conclusions of regression analyses 75
8. Conclusions 76
8.1 Discussion 76
8.2 Research Questions 77
8.3 Limitations 81
8.4 Suggestions for Future Research 82
8.5 Conclusion 83
Appendix A 84
Appendix B 92
Appendix C 93
References 95
List of Tables and Figures
Tables
Table 1.1: Internet shopping and security related indicators 10
Table 2.2: Banking Transaction Costs 19
Table 4.3: MIS Journal Rankings 27
Table 4.4: Models of Individual acceptance of information systems 30
Table 4.5: Information Systems studied using TAM 33
Table 6.6: Demographics of respondents 57
Table 6.7: Use of Internet Banking 58
Table 7.8 :Factor Loadings for Perceived Ease of Use 61
Table 7.9 : Factor Loadings for Perceived Usefulness 61
Table 7.10: Factor Loadings for Perceived Web Security 62
Table 7.11: Factor Loadings for Computer Self-Efficacy 63
Table 7.12: Factor Loadings for Facilitating Conditions 64
Table 7.13: Factor Loadings for Uncertainty Avoidance 65
Table 7.14: Factor Loadings for Intention to Use Internet Banking 66
Table 7.15: Regression analysis for Intention to use internet banking 68
Table 7.16: Regression analysis for perceived ease of use 70
Table 7.17: Regression analysis for perceived usefulness 71
Table 7.18: Regression analysis for Intention to use internet banking 72
Table 7.19: Regression analysis for perceived ease of use 74
Table 7.20: Regression analysis for perceived usefulness 74
Table 7.21: Hypotheses overview 75
Figures
Figure 1: Electronic Forms of Banking Business 17
Figure 2: General Rankings 25
Figure 3: TAM 32
Figure 4: TAM2 34
Figure 5: TAM3 35
Figure 6: Individuals' level of computer skills 2005 48
Figure 7: Internet access for households, 2007 (%) 49
Figure 8: Place of Internet use, EU-27, 2007 (% of individuals who accessed the Internet during the last 3 months) 50
Figure 9: Extended technology accepted model currently used to examine the adoption of internet banking in Greece 53
Acknowledgement
Completing this thesis, I would like to express my gratitude to my parents for their endless support. I would like to thank Roeland Aernoudts who always had time to offer me valuable advice and help during this project. His guidance made my work easier and much funnier leading to a wonderful cooperation, which fortunately does not end with this thesis. Especially I would like to thank Amanda Pouliasi who helped me in the translation of the questionnaires and the three managers (who want to remain anonymous) of the banks who showed their interest about this study and offered their cooperation. Last but not least I would like to thank my friends and especially Giannis and Irene for their valuable help.
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