Antecedents and Consequences of Adoption of Internet Banking: A Study in the Banking Industry

This thesis proposes conceptual model based on theory of internet banking among four Turkish banks in Istanbul, Turkey. According to the study model, security and privacy, perceived usefulness and easiness in internet banking, awareness, level of personal interaction and customer satisfaction of banks services prior to the bank’s adoption of internet banking are antecedents which positively effect on acceptance of employees and customers from internet banking usage. Due to the increase in these relationships the bank profitability would increase in the banking industry as it can serve more customers at any time with more clear understanding and individualized services. Internet banking is the new phenomenon attracted and employed with wide range of banks in the market. Banks as the heart of the societies play major role in serving their customers and employees effectively and efficiently. This thesis used two questionnaires for assessing the perception of both employee and customers. 100 employee questionnaires and 100 customer questionnaires used for analyzing the collected data. In this research, Pearson correlation, regression liner, one-way ANOVA, path analysis and independent sample T-test used to test the hypotheses. Thus, all of seven hypotheses were accepted. Therefore, easiness and usefulness of internet banking, awareness, level of personal interaction, security and privacy of internet banking increase the adoption rate of internet banking. As well as satisfied customers with prior banks services are more willing to use the online web pages of the banks. All of these variables lead to serving more customers at particular time and bringing more profit to the banks. Managerial implication and future direction presented at the concluding part of the study. Keywords: Internet Banking, Customer Satisfaction, Awareness, Security and Privacy, level of Personal Interaction, Profitability, Turkey.