Effects of Subjective Norms and Security on Online Banking Adoption: Multilevel Linear Model Analysis

Abstract

Robust macroeconomic performance is essential for an economic growth and development alongside challenging technology advancements. Within the service sector of the economy, one of the broadly studied areas of technological transformation is the retail financial services which includes consumer banking activities. Online banking enables customers to experience in a vast array of financial services through e-banking websites. Nevertheless, in practice; this phenomenon varies depending on the particular context. Hence, this research addresses the significance of subjective norms and security of e-services towards adoption of consumer online banking in the specified context. Sample was drawn from the students of the Kelaniya University those who are participating for the week-end study programs. The students of the doctor of business administration attached to the university were designated as enumerators of the data collection process. Data collection has been executed by way of self-administered questionnaires which were completed by the respective respondents. Initially 400 questionnaires were distributed and 287 duly completed questionnaires were considered for the final data analysis. TAM has been extended using the subjective norms and security of e-services variables and dimensions of the variables were measured by five-point Lickert scale. Reliability analysis was conducted to measure internal consistencies using Cronbach’s alpha. In order to test the hypotheses anova, ancova and multilevel linear model used. The empirical evidence supported three hypotheses indicating the significance of the variables/constructs on adoption of online banking. In conclusion, researcher has presented several suggestions related to future researches on online banking adoption field.