“an Empirical Study on Customer Acceptance of Internet Banking in Bahrain”

Topics: Bank, Online banking, Internet Pages: 11 (3083 words) Published: January 27, 2011

This is to certify that paper entitled “An empirical study on customer acceptance of internet banking in Bahrain” is our original and exclusive research work and has been presented in international seminar at Sohar University, Oman.

(Dr. Sujeet K Sharma)
(Dr. Radha K Sharma )
(Dr. Rajan Yadav)
(Dr. N. K. Jain)


1. Associate Professor, Birla Institute of Technology, Kingdom of Bahrain Phone: 00973-39216437, Fax: 00973-17692879
Email: sujeetks1@gmail.com
2. Associate Professor, Arab Open University, Kingdom of Bahrain Email: rk691@rediffmail.com
3. Associate Professor, Inderprastha Engineering College UP India Email: raj_yadav1974@yahoo.co.in
4. Professor, Gautam Buddha University Greater Noida UP India

Kingdom of Bahrain is recognized as one of the upcoming information-communication technology nation in the world. Presently, all major banks in Kingdom of Bahrain are leveraging information communication technology as a platform for effective and convenient means of conducting financial transactions. This paper is an endeavor to determine the level of customer acceptance of the internet banking services and investigates the factors that determine customer’s behavioral intentions to accept this new information system. The paper used single cross sectional research design and involved an administration of one hundred survey questionnaires from the kingdom of Bahrain. The Cronbach Alpha is used to test the internal consistency of the administered questionnaire. The paper proposed Extended Technology Acceptance Model (eTAM) to understand the user’s acceptance towards new information system. The results of the statistical tests such as correlation and multiple regression analysis indicate that Quality of internet connection, Perceived Usefulness, Perceived Ease of use, Privacy of transactional data, Security, and Time taken to execute the transactions are the main factors that affect the acceptance of internet banking in kingdom of Bahrain. The empirical findings of the study are useful for banks, policy makers and customers. ------------------------------------------------------------------------------------------------------- Key words: Internet banking, Kingdom of Bahrain, and eTAM

An Empirical Study on Customer Acceptance of Internet Banking in Bahrain

“The Kingdom of Bahrain has long been considered a strategic trading post between East and West. Its history goes back more than 4,000 years, when the Dilmun civilization lay at the heart of the world's trade routes. In modern times, Bahrain was the first nation in the Gulf to discover oil - and the first to recognize the need to diversify its economy. Today, Bahrain's proximity to major oil producers and affluent markets has contributed to its successful development as an acknowledged international banking and financial centre of excellence. This is evidenced by the remarkable presence of local, regional and major global financial institutions, all of which have taken advantage of the many opportunities for banking business that exist in the Kingdom. The country thus plays host to over 300 financial institutions undertaking various banking activities and represents a unique blend of local, regional and international names, as well as offering a diversity of financial services and products. Bahrain has also emerged as the world's premier Islamic financial centre, with 27 Islamic banks and 11 Islamic insurance (takaful) companies operating from the Kingdom. A review of the sector was conducted in March 2006 by the International Monetary Fund Financial Sector Assessment Programme (FSAP) which yielded positive results and concluded that Bahrain's...
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