Evaluation of Factors Affecting Internet Banking Adoption among Governmental and Private Banks Customers in Tehran

This paper seeks to identify empirically the factors underlying the decision to adopt online banking in Tehran.
Design/methodology/approach: The sample used in this study is based on 385 interactive questionnaires completed by Tehran internet users. Data were analyzed by employing correlation and multiple regression analysis.
Findings: The results showed that perceived usefulness, perceived ease of use, internet experience, trust and use of other banking products positively associated with the intention to use online banking in Tehran.
Research limitations/implications: This study was conducted in Tehran and future research can use this model to study the adoption of online banking in other cities.
Managerial implications: The results allow banks’ decision makers to develop strategies that can increase the adoption of online banking. Banks should improve the security and privacy of the websites, which will increase the trust of users. Banks should also create features which are useful to users, try to make the process of using the services easy for consumers, teach customers how to use the online services and use a package deal, such as an account with online access, debit or credit card and a SMS banking service.
Originality/value: The findings allow the factors that can influence the adoption of online banking in Tehran to be understood. Unlike existing studies based on Technology Acceptance Model (TAM), this study includes internet experience, trust and use of other banking products on top of the existing variables used in TAM. Most studies on adoption of online banking are focused on developed countries. By focusing on Iran, this model can also be applied to other countries which are relatively new to e-commerce and online banking.