Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 9

Determinants of Electronic Banking Service Adoption the Case of Economic Leadership in Bank in Economics Leadership Global Journal of Management and Business Research ( A ) XXIII Issue IX Version I Year 2023 22 © 2023 Global Journals 1) Convenience – By E-banking, can carry out their banking activities whenever you want. E-banking is a 24 hour service, so are no longer tied to the branch’s hours. On top of that, they don’t have to take the time to travel to the branch and wait in the inevitable lines, thus giving you more time to do what you want Turban (2008). 2) Mobility – E-banking can be done from anywhere, as long as have an Internet connection Turban (2008). 3) No Fees – Because an e-bank doesn’t have to worry about funding an actual bank location with all of those additional costs, fees can be reduced and are often non-existent. Those checking and savings accounts that are offered by completely online banks usually have no fees at all Turban (2008). 4) Online Statements – Most online banks try to be as paper-free as possible. Most statements and correspondence is done online, reducing the amount of paper used and sent out to you. This again will help reduce the costs of the online bank. As an added bonus, this makes online banking a great environmental choice. Be warned, some banks do charge if you do want a paper copy of something Turban (2008). 5) Direct Deposit – With any incoming money, such as salary, can arrange for it to be directly deposited into the bank account by the company sending the money. This is actually a double benefit, as don’t have to take the time to deposit the check, plus the money goes into account faster allowing them to earn interest that much quicker Turban (2008). 6) Automatic Bill Paying – With automatic bill paying, can automate paying their monthly bills Turban (2008). 7) Real Time Account Information – Because can access their accounts anytime, they can get up to date, real time information on the money in your accounts. 8) Transfers – Transfers between accounts with the same financial institution online can be done Turban (2008). 2. Benefits to General Economy Electronic Banking as already stated has greatly serviced both the general public and the banking industry. This has resulted in creation of a better enabling environment that supports growth, productivity and prosperity. Besides many tangible benefit in form of reduction if cost, reduced delivery time, increased efficiency, reduced wastage, e-banking electronically controlled and thoroughly monitored environment discourage many illegal and illegitimate practices associated with banking industry like money laundering, frauds and embezzlements. (Pham 2010). v. Factors Influencing Banks to Practice E-banking System There are different factors that affect the practice and adoption of technological innovation in general and specifically E-banking. For the adoption and practice of new technology there are two well- known models which describe the factors which affect the adoption and practice of E banking such as Technology-organization-environment (TOR) and Technology acceptance model (TAM). The Technology- organization-Environment framework (TOE) Kamrul, H 2009), which identifies three basic Factors for the adoption of technological innovation, i. e, technological factors, organizational and environmental factors. Technology Acceptance Model (TAM) Kamrul, H 2009), which posit the two sets of beliefs, i. e., perceived ease of use (PEOU) and perceived usefulness (PU) to determine individual's acceptance of a technology. PEOU refers to the degree to which an individual believes that using a particular system would be free of physical and mental effort, PU on the other hand is related to users' (Kamrul, H 2009) vi. Technology- organization- Environment (TOE) framework TOE framework was proposed by Tornatzky and Fleischer; it is designed for studying the likelihood of adoption success of technology innovations. This framework is a comprehensive and well received framework in the context of innovation adoption by organizations and has been used in many studies (Salwani, et al, & Ellis 2009; Chang et al 2007, Zhu & Kraemer 2006). Technology adoption within an organization is influenced by factors pertaining to the technological context, the organizational context, and the external environment. Even though theses paper is trying to assess the practice of e-banking it is also including the implementation and adoption of e- banking. Typical characteristics of technology considered in technology adoption studies are based on the assumption of Roger’s diffusion of innovation (Merga, D. (2017), Which include relative advantages (perceived benefits), and relative disadvantages (perceived risks).While the organizational factor refers to the organization’s characteristics that influence its ability to adopt and use of E-banking system. The environmental factor refers to the external environment Benefits from the economical’ point of view E- banking served so many benefits not only to the bank itself, but also to the society as a whole. (Pham 2010). E-banking made finance economically possible: Lower operational costs of banks, automated process, Accelerated credit decisions, and Lowered minimum loan size to be profitable. Potentially lower margins: Lower cost of entry, expanded financing reach, increased transparency. Expand reached through self- service: Lower transaction cost, Make some corporate services economically feasible for society and Make anytime access to accounts and loan information possible (Pham 2010).