Customer Acceptance and Bank Employee Perceptions of Internet Banking

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The British University in Dubai (BUiD)
The purpose of this research is to attain an in-depth understanding of the bank managers’ and employees’ perception of internet banking and investigate factors influencing customer adoption of internet banking (IB) and customer retention in the context of IB. Secondary research was conducted to gain an in-depth understanding of the issues and generate a model and hypotheses for achieving the aim of the research. Two distinct types of questionnaires for bank employees and customers were prepared, also questions were provided for interviews conducted with managers. Three banks were selected as case studies and sites for conducting the quantitative survey. Questionnaires were distributed through emails or hard copies. The collected data were analysed using SPSS software to test the hypotheses.The results show that usage of IB has significant impacts on the bank’s efficiency and effectiveness, market effects and profitability. Factors such as Demographic Characteristics (age, gender, and educational level), User Factors (customer knowledge, accessibility to the internet and prior experience with the internet) and User Perception of Usefulness (time saving and control) are influential in customer adoption of internet banking and factors including User Perception of Usefulness (cost saving and control), Customer Service Quality (responsiveness) and Online Information Quality (simplicity of use and navigation) have positive relationships with user satisfaction.Unlike many other research studies which focus on whether to identify the factors influencing customer adoption of IB or customer satisfaction, this study combines and investigate both and moreover investigates the relation between the influential factors and customer retention and loyalty to IB. Results show that user satisfaction is influential in user loyalty to the usage of IB. Furthermore it evaluates the bank employees’ and managers’perceptions of IB. According to the results, they perceive IB useful, efficient and effective,profitable, increasing customer satisfaction and market effects, reducing overall cost and no security issues.Findings from this study provides insights for the banks in Dubai by identifying the significant IB drivers, understanding key attributes for customer satisfaction and user loyalty to IB and recommendations to enhance the IB system to increase the number of online subscribers, motivate the users to utilize the IB in performing their transactions and retain the current users in order to reduce the overall cost of the bank, increase the volume of the sale,maintain good image in the market, sustain their competitive position in the market and increase the bank profitability.
internet banking, banks in Dubai, customer retention, bank employees, customer satisfaction, bank profitability