Offering a Conceptual Model of Technology Acceptance in e-Banking ...

Offering a Conceptual Model of Technology Acceptance in e-Banking Based on the Customers’ Satisfaction and Trust Alireza Dehghan, Parham Arjomand, Amirahmad Nayyeri and Masoud Tabatabaey

Abstract By facilitating the relationship with customers and increasing its speed and effectiveness, the Information Technology paves the way to improve the functions and innovations of offering services. One of the issues that is always raised when investigating a new technology is the amount of the Acceptance of that technology by users and customers. Getting highly improved in the two recent decades, electronic banking is not an exception. The Technology Acceptance Model is one of the models which has been widely used to describe the influential factors in the Acceptance of information systems and new technologies. The two factors of conceived using facility and conceived profitability have been regarded as basic factors in determining the Acceptance of various information technologies in the last two decades. In this article, while investigating the technology Acceptance model, efforts have been made to offer a combined model based on two significant factors, including customers’ satisfaction and trust, as other influential factors in e-banking Acceptance. Keywords e-Banking

Technology Acceptance Model Satisfaction Trust

A. Dehghan (&) P. Arjomand Faculty Member of Department of Information Technology Engineering, Kazeroun, Iran e-mail: [email protected] P. Arjomand e-mail: [email protected] A. Nayyeri Faculty Member of Department of Computer Science, Kazeroun, Iran e-mail: [email protected] M. Tabatabaey Student of Information Technology Engineering, Kazeroun Higher Education Complex, Fars, Kazeroun, Iran e-mail: [email protected]

James J. (Jong Hyuk) Park et al. (eds.), Computer Science and Convergence, Lecture Notes in Electrical Engineering 114, DOI: 10.1007/978-94-007-2792-2_40, Ó Springer Science+Business Media B.V. 2012

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1 Introduction One of the most important elements to develop e-commerce is an e-banking system that facilitates transactions of e-commerce instantaneously with global financial system changes. In fact, e-commerce is not independent of e-banking. Use of electronic systems in finance and credit institutions is increasing fast all over the world and customers of e-banking services are growing. According to Data Monitor research, number of e-banking services customers in 8 countries, France, Germany, Italy, Sweden, Switzerland, The Netherlands, Spain and England from 4.5 million in 1999 got up to 22 millions in 2004. In 2005 more than 75% of companies in developed countries use at least one of the e-banking services [19]. E-banking is one of the most successful services in e-commerce based on increase of customer satisfaction which is relied to access to value-added services. Actually, this method has transformed the way access to accounts and type of transactions. In this type of banking, customer needs should be identified and ranked to know the importance and influence of each of these needs on customer satisfaction. It can work with banks to determine what factors and with what degree of influence, have an impact on customer satisfaction and as a result try to satisfy that factors. One of the most significant results of customer satisfaction is their loyalty. Regarding to rapid growth of communication technology and emerging electronic banking system, pioneer banks in this field that make customer satisfaction their highest priority, can get up great benefits. In the past, because of the state banking system and the same services provided by banks, customers paid no fixation to any particular bank. But in recent years by growth of nongovernmental banks and having more competition among banks, all banks try to gain competitive advantage, particularly through better satisfying customers’ needs. In this regard, one of the most strategic services is electronic banking and customer satisfaction of that. There is always a concern in the implementation of electronic banking whether this new technology and new services to their users and customers will be admitted or not. The Technology Acceptance Model (TAM) is one of the models which has been widely used by users and customers to describe the influential factors in the Acceptance of information systems and new technologies [22]. In this paper in addition to examine each of the satisfaction and trust factors, will pay attention to the relationship between this two factors in e-banking and at the end we will provide a conceptual model of technology Acceptance in electronic banking based on satisfaction and trust of customers.

2 Acceptance of IT Acceptance of IT systems plays an important role in investing in this technology. Acceptance of this technology by the users is one of the factors affects the success and has positive results for banking organizations. Impact of technology, has

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positive relationship with its acceptance. So, if the potential users of this technology show resistance against it, the desired objectives can’t be achieved. Low level of acceptance of information technology causes low-level use. Low level of computer use at work is one of the main problems that affect the effectiveness and efficiency of banking institutions and has negative effects. Since the new banking system based on computer use, factors affecting customers and users of information technology should be known to increase the use of computers.

3 The Technology Acceptance Model (TAM) The Technology Acceptance Model is one of models which widely used to describe the factors affecting the Acceptance of information systems and communication technology by users and customers [22, 30]. This model should be regarded as a powerful model for predicting technology acceptance by users [30]. Understanding the factors that cause the Acceptance of a technology and make information technology to be accepted is important researches in the field of information technology [9, 11]. Technology Acceptance model was made by Davis In 1989 to understand the relationship between attitudes, behavior of IT consumer and also to determine the factors affecting IT Acceptance by users of information systems and in order to clarify and predict the behavior of computer users was developed [8].(see Fig. 1). As shown in Fig. 1, technology Acceptance model derived from the Theory of Reasoned Action (TRA) (Fishbein-Ajzen). The logical operation theory that is a general model expresses that: attitude determines the social behavior [23] and attitude is a function of the beliefs about the consequences of the behavior and evaluates the result [1]. In the technology Acceptance model an implementation of the logical operation theory is done to model the Acceptance of information systems by users. To beliefs, Perceived Ease of use (PEOU) and Perceived Usefulness (PU) has been considered as two basic structures in the Acceptance of IT in the past decades [12]. According to The technology Acceptance model, perceived usefulness of the system by users is influenced by the fact that the system is easy to use. This model also assumes that the perceived ease of use and perceived usefulness has a direct impact on people’s attitude to use of information systems and ICT [2]. The aim of technology model is to provide a description of the computer acceptance parameters which is general and has the ability to describe the behavior of users in a wide range of computing technology and its users are of different types [20]. The model has descriptive approach, in addition to predictive aspects. Thus, researchers and administrators can identify why a specific system may not be accepted and the appropriate corrective steps to be done. In 2000, Davis and Venkatesh [30] expanded the TAM model theoretically and described the usefulness and desires and intentions to use words the social impact and Cognitive instrumental processes. The model developed is known as TAM II

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Fig. 1 Original technology acceptance model

Fig. 2 Technology acceptance model II

[21] (see Fig. 2). Using collected data from four different systems that in two examples voluntary use and in two others compulsory use was analyzed. Model structures at three different times: before deployment, a month after deployment, and three months after system implementation in any organization was measured. So, the developed model was confirmed in all organizations at all three times [16]. By using TAM I as starting model, in TAM II new theoretical structures including social impacts (subjective norms, voluntary and imagine) and cognitive instrumental processes (job relationship, quality of output, the ability to prove the results and ease of use) was added to the model [20].

4 The First Principle of e-Banking, Customer Orientation Because the economic cycle of all financial institutions will continue with the support and investment of customers of in e-banking systems should pay special attention to the customer. Research shows that customer retention is how crucial for businesses and service quality is a factor that is likely to affect customer retention rate. Even a 5% increase in customers, raises the profit level 25–30% and if a institution 5% decrease rate of losing customers, the final net value of each customer up to 75% increase for the Institute [15]. Because of today’s competitive business world, the organization will succeed in attracting customers that provides


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the best and most to services to its customers. Therefore, the role of customers in the development of economic activities should be a principle and E-banking applications regarding to this principle of structures [18]. One of the major flaws in the current banking system is that the customer’s is classified by the bank branch where he has account and other branches do not know him as one of users of their bank’s services. This causes the customer refers to several banks for performing banking activities and incurs costs and wastes a lot of time [19]. Development of ebanking creates the possibility that customers be serviced in any branch of that bank and not just a specific branch [18]. In other words, the extensor branch of account will register his signature and his name and through connected systems all the branches of the bank, and if all systems are connected, all the banks knew him and will service him [19].

5 Customer Satisfaction According to this research, the concepts related to customer satisfaction and its measurement, the first time was expressed in 1977 by ‘‘Oliver’’. He proposed customer satisfaction as pleasant experience of shopping of last product or service [10]. In other words, customer satisfaction means that customers are satisfied with treatment of employees and services of organizations and the bank has succeeded in attracting and retention of them. These satisfied customers, how spend more time and money, to will expect services with higher quality [7]. In other words, Kotler defines customer satisfaction as a scale to which a company’s actual performance to satisfy customer expectations is measured. In his opinion If the performance of the company meets customer expectations, customer is satisfied and otherwise make him sense discontent [25]. Customer satisfaction provides many benefits for the company and higher levels of customer satisfaction leads to loyalty. The customers, who are satisfied a lot, tell their good experiences to others. High customer satisfaction is a kind of insurance for the company against possible mistakes that because of changes associated with their services is inevitable. Permanent customers in dealing with such situations are more tolerant and due to previous good experiences, easily ignore these few mistakes. Therefore, it is not surprising that customer satisfaction is the most important function of organizations and institutions [17]. In accordance with principles of communication marketing, customer satisfaction is the beginning of relationship between customer and seller. Communication satisfaction is the prerequisite for quality of communication. But in electronic banking there is no relationship between customer and seller. Therefore for satisfying customers other solutions such as giving special discounts to customers using electronic banking, giving services to customers conveniently, providing high-speed internet for transaction should be used.

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Fig. 3 Technology acceptance model and its impact on trust

6 Trust The first step in describing a structure is to understand its meaning. The important element among organizations and transactions is trust which facilitates risk and significantly eases the economic transactions. Trust facilitates human interactions. Trust helps the economy and helps people to do business transactions smoothly. In other side, Lack of Trust is a beneficial mental state that makes us able to avoid the systems or individuals or organizations which are unreliable and unsafe [6]. Berry mentioned trust as the most powerful marketing tools based on relationship [3]. According to studies of Fui-Hoon [5] Customers decide to buy online just because of trust [28]. Meyer has defined trust as a person willing to be vulnerable in front of the opponent, Based on this assumption that the other side will perform the expected activity without his direct supervision and control [26]. In another definition trust given as a belief or expectation to which the seller states are reliable and seller is not exploiting vulnerability of customer [6]. Trust and risk completely relevant together and in other words, risk is core of trust [26].

7 The Impact of Trust on Electronic Banking Today, security and distrust are the main concerns of users of electronic banking. For users of electronic banking that connect to the Internet to use services of this type of banking, trust has a great importance. Trust happens when a person believes that the other side has useful factors in addition to profitability [27]. It is essential that customers know the product or service provider because without reducing the risk customers can’t continue to interact with the product or service providers. Trust is one of the most effective methods of reducing risk for customers [14]. Trust in electronic banking is more important than in offline banking [26]. When it is important to make others to trust us that uncertainty and risk is


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Fig. 4 Factors affecting customer satisfaction and loyalty

widespread [24]. In the Internet, users all around the world have the ability to find important files and information on the computers and transfer information through internet. Marketing researchers consider trust as a key structure in relationship marketing [4], [14]. The researchers believe that customer trust has a significant effect on customer loyalty. This could be considered as customer willingness to maintain an ongoing relationship with the seller. Bashiri and Joneidi in an article titled ‘‘Effect of Trust on customer acceptance of Internet banking, based on TAM model, Mellat Bank case’’ studied the basic model of TAM (see Fig. 3). The researchers by adding another structure to the basic model, Concluded that the Trust as a third influential structure in the basic model will increase the acceptance of Internet banking by customers [20].

8 The Relationship Between Satisfaction and Customer Trust Since different models for the study of loyalty, customer satisfaction and Trust in the marketing issues are discussed. For example Deng and Zhaohua in an article titled ‘‘Understanding customer satisfaction and loyalty’’ offered a model where factors such as Trust, service quality, perceived value (functional, emotional, social and financial) and the costs for change are considered as factors influencing customer loyalty and satisfaction but these factors are not necessarily affected by the companies trade marks (see Fig. 4) [13].

9 Technology Acceptance Model Based on Trust and Customer Satisfaction Based on discussed models and cases and after studies done in this research, these models were combined and eventually a conceptual model for acceptance of technology with emphasis on satisfaction and Trust was provided (see Fig. 5).

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Fig. 5 TAM with an emphasis on customer satisfaction and trust

As was stated in the previous sections, TAM model has two basic structures which are perceived usefulness and perceived ease of use. These two structures are always influenced by external variables such as organizational factors, social factors, mental perceptions and system features such as computer hardware, training method and etc. After upgrade of this model to TAM II, new theoretical structures were added to the TAM model. Regarding to interplay of these two basic structures on Trust and effect of trust on tend to use technology we can introduce trust as the third affecting structure on this model. According to research done by Zhohavi Dong and his colleagues, factors such as Trust, service quality, perceived value (functional, emotional, social and financial) and costs for are considered as factors influencing customer loyalty and satisfaction (see Fig. 4) Hence the usefulness of Trust and Perceived ease of use and perceived value creates customer satisfaction that this trust has a significant impact on customer satisfaction and tend to use technology and Finally leads to two different sense of loyalty and technology adoption ore on the other side, will make customer to complain that causes customer temporarily dismissal or possibly will Completely separate him of technology.

10 Conclusion Economic life of all financial institutions continues with investment and support of customers. In launching e-banking systems should pay special attention to the customers. Due to global extent of business competition, an Institution will be


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successful in attracting more customers that provides its services in high quality and quantity. But, to fulfill this need, these institutions should respect important principles that always focuses on creating Satisfaction and confidence among customers. Decades of electronic banking passed, and there is still the concern whether this technology can be fully accepted by customers. For this reason, various researches has been done about the electronic banking. One of the ways to evaluate acceptance of new technology is the TAM model. In theoretical part of this research relationship between technology acceptance and the satisfaction and trust was widely described and then the relationship between satisfaction and trust introduced. These issues show that there is a close relationship between these two structures and this model. Finally, Due to studies done by researchers in other researches, expressed a combined model obtained from trust and satisfaction which are important in acceptance of electronic banking.

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