Encouraging Offline Banking Customers to Adopt Online Banking: A Study on Customers of Dhaka City

摘要

While the use of technologies in banking services is on the rise worldwide, a substantial percentage of customers, specially in developing countries, still prefer the traditional forms of banking. This study aims to investigate the factors that inhibit customers of offline banking to switch towards online banking. In addition, it also identifies the factors that influence those customers positively towards online banking. Data were collected from 236 customers who conduct transactions traditionally in different banks in Dhaka city and who do not take any online services from any bank. The data collected from the survey were analyzed using the IBM SPSS package. Both descriptive and inferential statistical tools were used for analysis. Our study shows that customers of offline banking have lack of trust/confidence in online banking services and consider the services are associated with risk, which inhibits them to switch to online banking. On the other hand, customers of offline banking are found to perceive that online banking services are useful and facilitating conditions are favorable for taking online services. However, the customers are found to be in a confusing state about the ease of use of the services. Interestingly, about 71% of the traditional customers are found to switch to online banking mode if their concerns with the later system are addressed. Finally, based on these findings, implications for banking practitioners and policy makers are articulated.