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Influence of Psychographics and Risk Perception on Internet Banking Adoption: Current State of Affairs in Britain

Author

Listed:
  • Muhammad Ali Nasir

    (Faculty of Business and Law, Leeds Beckett University, United Kingdom.)

  • Junjie Wu

    (Faculty of Business and Law, Leeds Beckett University, United Kingdom.)

  • Milton Yago

    (Faculty of Business and Law, Leeds Beckett University, United Kingdom.)

  • Haohong Li

    (Faculty of Business and Law, Leeds Beckett University, United Kingdom.)

Abstract

This paper investigates the factors which determinate internet banking (IB) decisions among UK IB customers based on a survey which resulted into 191 usable questionnaire respondents randomly collected from a UK city. A linear regression technique is used to analyse data. It is found that perceived usefulness and perceived ease of use consistently have significant positive impacts on the decisions of IB adoption while these IB users are specifically concerned about security risk, privacy risk and financial risk related to using IB services. However, social risk has no significant impact on their decision to adopt IB. The findings indicate that traditional technology related factors are still relevant but psychological barriers, especially risk concerns have significant negative impacts on consumers' attitudes towards IB.

Suggested Citation

  • Muhammad Ali Nasir & Junjie Wu & Milton Yago & Haohong Li, 2015. "Influence of Psychographics and Risk Perception on Internet Banking Adoption: Current State of Affairs in Britain," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 461-468.
    • Handle: RePEc:eco:journ1:2015-02-17
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    References listed on IDEAS

    as
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    5. Gazi Salah Uddin & Phouphet Kyophilavong & Nasim Sydee, 2012. "The Casual Nexus of Banking Sector Development and Poverty Reduction in Bangladesh," International Journal of Economics and Financial Issues, Econjournals, vol. 2(3), pages 304-311.
    6. Girish Karunakaran Nair & Harsh Purohit & Nidhi Choudhary, 2014. "Influence of Risk Management on Performance: An Empirical Study of International Islamic Bank," International Journal of Economics and Financial Issues, Econjournals, vol. 4(3), pages 549-563.
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    Cited by:

    1. Pankaj Tiwari, 2021. "Electronic banking adoption in Ethiopia: an empirical investigation," SN Business & Economics, Springer, vol. 1(9), pages 1-28, September.
    2. Anam Bhatti & Shafique Ur Rehman, 2019. "Impact of Social risk, Government and Psychological Factors with Moderator Cultural Factors on Online Shopping Behavior in Pakistan," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 7(1), pages :31-44, March.
    3. Mahiswaran Selvanathan & Uma Devi Krisnan & Goh Kar Jun, 2017. "Acceptance of Internet Banking among Consumers in Kota Damansara, Selangor, Malaysia," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(2), pages 103-103, January.
    4. Bakae Aubrey Mokoena & Eugine Tafadzwa Maziriri, 2017. "A Regression Analysis of Generation Y Female Students' Perceptions on Social Risk, Buying Behaviour and Apparel Store Choice," Journal of Economics and Behavioral Studies, AMH International, vol. 9(1), pages 157-165.

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    More about this item

    Keywords

    Internet Banking; Consumer Perceptions; Psychological Barriers; UK;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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