Factors influencing the adoption of internet banking: a case study of commercial banks in Mauritius

The purpose of this paper is to investigate the factors influencing the adoption of internet banking services in Mauritius. Drawing from the technology acceptance model, theory of reasoned action, theory of planned behaviour and the extensive literature on demographic profiling of internet banking users, trust and security aspects associated with adoption rate of internet banking, this paper combines various predetermined constructs in one model. The different constructs such as perceived ease of use, perceived usefulness, subjective norms, attitudes, behavioural intentions, security and trust aspects, the level of awareness on internet banking services and demographic variables such as age, income, gender and education into one integrated framework. Hence, the paper will deepen understanding of the specific factors underpinning the adoption of internet banking in Mauritius.

This paper reports upon the empirical findings of the customer survey on the various factors impacting on the adoption of internet banking by the questionnaire method. The Internet Banking Services Acceptance Model (IBSAM) is further validated through a survey instrument administered to 384 respondents visiting various banking institutions across the nine districts throughout Mauritius to ensure proper geographical coverage. The questionnaires were further processed and analysed with the statistical programme SPSS, by using descriptive and inferential analysis.

Data analysis showed that perceived ease of use and perceived usefulness have a direct influence on the adoption of internet banking in Mauritius. Results have also indicated that both trust and security aspects are deemed crucial factors to explaining internet banking adoption in Mauritius. Further examination of the inferential analysis highlighted that level of education and income level of respondents may be a major determinant in influencing the adoption of internet banking.

This research provides banking institutions with significant information on the various aspects that need to be highlighted in their banking communications strategies to increase the adoption rate of internet banking services. Banking institutions need to stress upon the benefits of internet banking services, ease to use, trust and security aspects. The ndings of the research provide valuable insights for the banking industry and also urge upon a reshaping of their e-marketing strategy in relation to internet banking services in Mauritius. The research findings revealed that secured web contents and design are key tools to increase the adoption rate of internet banking. Practical recommendations to increase web usefulness and trust, and guidelines to reduce perceived risk are also provided in the present research paper.

The purpose of the study is to fill up significant gaps in the literature on internet banking landscape in the context of developing countries like Mauritius. The findings are expected to be of significant use to the commercial banks and other financial institutions offering or planning to offer internet banking solutions in the near future. An understanding of the factors influencing the adoption of internet banking services is essential for marketing practitioners so as to capitalize upon the underlying benefits of internet banking and hence, offer banking customers an online experience coupled with a greater level of personalization and customization.