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Factors affecting internet banking adoption among internal and external customers: a case of Pakistan


  • Raza, Syed Ali
  • Hanif, Nida


This study investigates the determinants which attract the customers to adopt internet banking in Pakistan by employing internal and external customers, on the sample size of 210 for internal and 151 for external respondents through using the survey research instrument questionnaire. The confirmatory factor analysis with multiple regressions technique has been applied. The result of regression analysis shows that Perceived Usefulness (PU), Information of Internet Banking (INF), Perceived Risk (PR), Security and Privacy (SP) shows more influence to increase the intention of external customers to adopt internet banking services while Government Support (GS) provide more influence for the internal customers in adoption of internet banking services. This study proves that external customers can be more emphasize, if they believe convenient in adopting the services. It is recommended that, bank should take some consideration to apply internet banking by delivering the information in an easiest way, provide more usefulness and benefits and also minimize the fraud as providing more security and privacy. This will helps the bank to increase their profit by reducing its cost, time saving and retain more potential users.

Suggested Citation

  • Raza, Syed Ali & Hanif, Nida, 2011. "Factors affecting internet banking adoption among internal and external customers: a case of Pakistan," MPRA Paper 39314, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:39314

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    More about this item


    E-banking; Internet Banking (IB); TAM; Factor analysis; Multiple Regression;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages


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