Barriers in adoption of internet banking: A structural equation modeling - Neural network approach

Comparatively, less attention has been paid to the factors that obstruct consumers to use internet banking. Therefore, this study aims to analyze the barriers in the adoption of Internet banking in Karachi, Pakistan. A survey research questionnaire was adopted and, in total, 300 useable responses we...

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Bibliographic Details
Published in:Technology in society 2020-05, Vol.61, p.101231, Article 101231
Main Authors: Arif, Imtiaz, Aslam, Wajeeha, Hwang, Yujong
Format: Article
Language:English
Subjects:
Adoption
Banking
Banks
Barriers
Confirmatory factor analysis
Consumers
Customers
Electronic banking
Exploratory factor analysis
Factor analysis
Image barrier
Internet
Internet banking
Males
Mathematical models
Measurement
Modelling
Multivariate statistical analysis
Neural network
Neural networks
Online banking
Polls & surveys
Structural equation modeling
Tradition barrier
Transactions
Trust barrier
Value barrier
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Summary:Comparatively, less attention has been paid to the factors that obstruct consumers to use internet banking. Therefore, this study aims to analyze the barriers in the adoption of Internet banking in Karachi, Pakistan. A survey research questionnaire was adopted and, in total, 300 useable responses were used from the banks’ customers. First exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were applied for the establishment of measurement model and structural equation modeling (SEM) was used to find the significant influence barriers on Internet banking adoption. In the second phase, the neural network model was used to rank the relative influence of significant predictors obtained from SEM. The results indicate a significant positive relationship between value barrier, risk barrier, and image barrier with the usage of Internet banking. Only, the traditional barrier has a negative insignificant effect on the usage of Internet banking. The image barrier has a higher impact on usage of Internet banking followed by the value barrier and risk barrier. Results also indicate that males are facing high barriers in comparison with females. Findings provide guidelines to banks for developing facilities that enable the consumer to use Internet banking for their financial transactions. This study will be highly beneficial for the banking industry to improve their online services and revise their policies to facilitate consumers by meeting their needs.
ISSN:0160-791X
1879-3274
DOI:10.1016/j.techsoc.2020.101231