Determining the influence of complexity, perceived benefits and subjective norms in the adoption of internet banking in Tanzania

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University of Dar es Salaam,
The introduction and continuous improvement of internet banking by many commercial banks necessitates an understanding of the factors influencing customer’s adoption of internet banking. Despite the presence of several researches on factors influencing the adoption of internet banking, very few have incorporated social factors. This study aimed at determining the influence of subjective norm, complexity and perceived benefits as well as exploring the influence of demographic variables on the adoption of internet banking. Using a structured questionnaire, a convenient sample of bank customers of two Tanzanian major commercial banks was approached to fill in the questionnaires. A total of 400 responses including 200 who were using internet banking and 200 who had not adopted the use of internet banking were obtained and used for descriptive and inferential analyses. Using binary logistic regression, model Chi-Square (149.766) was significant with Cox and Snell’s and Nagelkerke R2 of .312 and .416 respectively. The estimated model’s percentage of correct assignment on top of the baseline was 23%. The results indicate that complexity, perceived benefits, and social influence contribute positively in the adoption of internet banking. The results indicate that subjective norm has significant negative effects, while lifestyle does not contribute to the adoption of internet banking. With respect to demographic factors, the results indicate that the probability of adopting internet banking is higher for males and tends to decrease as age increases. The findings provide practical implications to commercial banks on how to promote internet banking effectively and efficiently. Theoretically, the study incorporates and integrates variables into the common models used to explain Internet adoption.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark ( THS EAF HG1708.7.T34L94)
Internet banking, Tanzania
Lyimo, V (2017) Determining the influence of complexity, perceived benefits and subjective norms in the adoption of internet banking in Tanzania, Master dissertation, University of Dar es Salaam. Dar es Salaam