EXAMINATION OF CRITICAL FACTORS EFFECTING ADOPTION OF INTERNET BANKING: A CASE OF PAKISTAN

Abstract

This research aims to quantify the perceived performance, time, and financial risks of Internet Banking adoption in Pakistan's growing economy. Through a standardized questionnaire, the data were obtained from 500 internet banking customers about the barrier to Internet Banking (IB) adoption. Examining the link amid exogenous and endogenous factors, this research applied structural equation modelling. A strategy for analyzing the influence of performance, time, and financial risks on the adoption of online banking. The results of the research indicate that all factors continue to have negative relationship with IB adoption. In addition, the findings indicated that end-users refrain from adopting IB because they believe even slight errors when running the new IB system might result in catastrophic losses. The results are thus significant for users adopting the internet banking in particular contexts toward adaptation and utilization of different online facilities aimed at providing the awareness to customers about online banking.