Adoption of electronic banking services by Iranian customers

Abstract

Banking has always been a highly information intensive activity particularly over the last few decades that information technology (IT) has affected the banking industry heavily. The appearance of electronic banking services has changed the nature of financial services delivered to customers. By providing these services, banks can get notable cost savings, reduce their branch networks, and downsize the number of their service staff. But since customers do not adopt and use these services, banks can not profit from these new services. Recently, a number of Iranian banks have started to offer electronic banking services to their customers but still electronic banking is an unknown concept from customers’ point of view. The purpose of this study is to gain a deep understanding of the factors which influence the adoption and usage of these services by customers in Iran. In this study, based on the review of literature, a model of the perceived innovation attributes and the personal characteristics of adopters have been developed. Then the model has been tested using a questionnaire concerned with Iran market for electronic banking services. The results are presented in details which indicate that the model is a proper predictor of adoption behavior. In particular, perceptions of relative advantages, compatibility and trailability of the service, cost and risk as well as gender and social character were found to influence the adoption of electronic banking services. The practical implications of the study are discussed and suggestions for future research are presented.

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