Adoption of internet banking: An empirical study in Hong Kong

This study investigates how customers perceive and adopt internet banking (IB) in Hong Kong. We developed a theoretical model based on the Technology Acceptance Model (TAM) with an added construct Perceived Web Security, and empirically tested its ability in predicting customers' behavioral intention of adopting IB. We designed a questionnaire and used it to survey a randomly selected sample of customers of IB from the Yellow Pages, and obtained 203 usable responses. We analyzed the data using Structured Equation Modeling to evaluate the strength of the hypothesized relationships, if any, among the constructs, which include Perceived Ease of Use and Perceived Web Security as independent variables, Perceived Usefulness and Attitude as intervening variables, and Intention to Use as the dependent variable. The results provide support of the extended TAM model and confirm its robustness in predicting customers' intention of adoption of IB. This study contributes to the literature by formulating and validating TAM to predict IB adoption, and its findings provide useful information for bank management in formulating IB marketing strategies.