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Internet Banking Adoption in Saudi Arabia: An Empirical Study

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  • Shahzada Nayyar Jehan
  • Zaid Ahmad Ansari

Abstract

The current study was conducted with the primary objective to explore the factors and analyse their relevance and importance in the adoption of internet banking in Saudi Arabia. In this paper, we gathered evidence from 300 consumers about the factors they considered important before opting for internet banking. Responses were collected by administering a Likert scale close ended structured questionnaire. Factor analysis was conducted to group the factors into significant components areas. The results showed that the factors under study explained 91.508% of the variance in internet banking adoption. Also, that the trust is the most crucial factor for the consumers of internet banking (25.950% variance) followed by ease of using internet banking services (25.188% variance); whereas 21.921% variance explained efficiency and effectiveness of the internet banking and 18.449% variance explained the importance of information about the internet banking to the consumers. The findings of this study will allow the banks to develop internet banking strategies tailored to the expectations of their clients. The study recommends banks to focus on building the trust of the customers and should also make internet banking as convenient as possible. Besides, the internet banking should be efficient and effective in delivering banking services. Furthermore, there should be sufficient information available regarding internet banking. Saudi Arabia is the largest economy in the Middle East. Of late the country has focused on the modernisation of its economy and has been trying in earnest to integrate with the world economy. The e-commerce activities are also growing; however, research in internet banking is limited. The findings of the paper can serve as a model for the adoption of internet banking especially in Saudi Arabia and in the Middle East or elsewhere in general. The research was conducted in Saudi Arabia, and more researches could be conducted based on this study in other parts of the Middle East for more generalisation of the findings.

Suggested Citation

  • Shahzada Nayyar Jehan & Zaid Ahmad Ansari, 2018. "Internet Banking Adoption in Saudi Arabia: An Empirical Study," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 10(3), pages 1-57, August.
    • Handle: RePEc:ibn:ijmsjn:v:10:y:2018:i:3:p:57
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    References listed on IDEAS

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    1. Hani AlHaliq & Ahmad AlMuhirat, 2016. "Customer Satisfaction with Electronic Banking Services in the Saudi Banking Sector," Asian Social Science, Canadian Center of Science and Education, vol. 12(5), pages 139-139, May.
    2. Agarwal, Reeti & Rastogi, Sanjay & Mehrotra, Ankit, 2009. "Customers’ perspectives regarding e-banking in an emerging economy," Journal of Retailing and Consumer Services, Elsevier, vol. 16(5), pages 340-351.
    3. Jiaqin Yang & Li Cheng & Xia Luo, 2009. "A comparative study on e-banking services between China and USA," International Journal of Electronic Finance, Inderscience Enterprises Ltd, vol. 3(3), pages 235-252.
    4. Nick Hajli & Xiaolin Lin, 2016. "Exploring the Security of Information Sharing on Social Networking Sites: The Role of Perceived Control of Information," Journal of Business Ethics, Springer, vol. 133(1), pages 111-123, January.
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    Cited by:

    1. Shahzadah Nayyar Jehan, 2021. "Due Diligence and Risk Alleviation in Innovative Ventures—An Alternative Investment Model from Islamic Finance," JRFM, MDPI, vol. 14(6), pages 1-13, June.
    2. Alexandros P. Bechlioulis & Dimitrios Karamanis, 2023. "Consumers’ changing financial behavior during the COVID-19 lockdown: the case of Internet banking use in Greece," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 526-543, September.
    3. Orkida Ilollari & Petraq Papajorgji & Adrian Civici & Howard Moskowitz, 2022. "Measuring Client’s Feelings on Mobile Banking," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 23(1), pages 28-39, June.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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