Abstract:
This study develops an extended model to predict customer adoption of Internet banking based
on the Technology Acceptance Model (TAM) integrating with perceived risks, perceived web site
features. In particular, drawing from the perceived risk construct, six specific risk facets;
security, privacy, social, time, performance and financial risk synthesized with the construct
perceived web site features which has two variables; perceived system quality and perceived
information quality which are integrated with the technology acceptance model (TAM)
variables; perceived usefulness and perceived ease of use to propose a theoretical model to
predict customers’ adoption of Internet banking. An online questionnaire was designed and sent
out to Internet banking users in the selected three local commercial banks in Sri Lanka.
Respondents participated through extensive personalized e-mail invitations through the
selected commercial banks. The extended model is then tested using the data collected and
analyzed using multiple- regression. The results indicated that the adoption of Internet banking
is positively affected by perceived usefulness, perceived security, perceived social facet, and
perceived system quality and those variables were found to be the most influential factors
explaining the adoption of Internet banking services. In addition, analysis has revealed that
there is a moderated impact on the relationship between the independent variables andendent variable through respondents’ age, income levels and working hours.
