Effect of Internet Quality & Trust & Ease of Use & Usefulness factors on acceptance of Internet Banking services in Libya

Abstract

Online banking offers services around the world through Automated Teller Machines (ATM),
Internet banking and telephone banking ... act . It helps banks to remain competitive and
enhance customer service. Customer acceptance of online banking services in some
developing countries is quite low. This paper reports on research based on the Technology
Acceptance Model (TAM) which has been validated over several studies and has contributed
to the research into technology acceptance by individuals in developing and developed
countries. This study attempts to validate the integration of the TAM constructs Perceived
Ease of Use (PEOU) and Perceived Usefulness (PU) with the external factors of trust and
internet quality with respect to their influence on customer intentions to use online banking in
Libya. Using Structural Equation Modeling (SEM) on data from a survey of 536 customers
from four banks in major cities in Libya, the study results indicate the significant role of
Internet quality, trust, PEOU and PU in encouraging customers to adopt online banking in
Libya. Conclusions and recommendations for future research are also provided.