Understanding adoption and continual usage behaviour towards internet banking services in Hong Kong

  • Siu Cheung CHAN

Student thesis: MPhil Thesis (Lingnan)


Banks and financial institutions in Hong Kong are increasingly finding themselves facing rapid increases in turbulence and complexity, leading to greater uncertainty and increased competition. Customers are also becoming more demanding. Apart from the traditional type of banking services, customers today require more personalized products and services, and access to such services at any time, and at any place. Although there is no panacea for banks to stay competitive, Internet Banking is one of the advanced information technologies they can employ to achieve a high level of customer services.

Internet Banking is an emerging technology that permits conduct of banking transactions through the Internet. From the banks’ point of view, it requires the lowest transaction cost among various channels, just one percent of branch-based banking. It also can improve the efficiency and effectiveness of corporate business processes through elimination of paper work. One of the many benefits of Internet Banking is that customers can use bank services 24 hours a day from anywhere in the world.

This study investigates university students' adoption/continual usage behaviour within the context of Hong Kong Internet Banking services. A research framework based on the extension of Technology Acceptance Model and Social Cognitive Theory was developed to identify factors that would influence the adoption/continual usage of Internet Banking. The framework includes subjective norm, image, result demonstrability, perceived risk, computer self-efficacy, perceived usefulness, perceived ease of use and intention constructs. A diverse sample of undergraduate and postgraduate students of seven universities in Hong Kong was used to test the models.

Structural Equation Modeling was used to examine the entire pattern of intercorrelations among the eight proposed constructs and to test related propositions empirically. The results reveal that both subjective norm and computer self-efficacy play significant roles in influencing the intention to adopt Internet Banking indirectly. Perceived usefulness has significant positive effect on intention to adopt, this result supports the extension of the Technology Acceptance Model. Perceived ease of use has significant indirect effect on intention to adopt/continual usage through perceived usefulness, while its direct effect on intention to adopt is not significant in this empirical study. Theoretical contributions and practical implications of the findings are discussed and suggestions for future research are presented.
Date of Award2001
Original languageEnglish
Awarding Institution
  • Department of Computing and Decision Sciences
SupervisorMing Te LU (Supervisor)

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