Customer Adoption of E-Banking Service: A Study in Pokhara City, Nepal

Abstract

         In today’s growing worldwide economy and competitive environment, e-banking is crucial for banks strategy because of its benefit for each bank and customers. The purpose of this research paper was to investigate the customer adoption towards e-banking services in Pokhara city, Nepal. Among numerous e-banking services ATM, Mobile banking and internet banking services were taken into consideration for this study. A conceptual framework was developed based on Unified Theory of Acceptance and Use of Technology (UTAUT) and examines relationship between the independent variables such as Performance Expectancy (PE), Effort Expectancy (EE), Social influence (SI) and Facilitating Condition (FC) upon dependent variable Behavioral Intention to use (BI) and also relationship between behavioral intention to use upon Actual Use (AU). Quantitative research design was used where target population was the customers of banks having residence at Pokhara city, Nepal. Survey questionnaire was prepared using Google form and sent to the customers of banks using convenience sampling method. Out of all of the surveys collected, 208 have been usable and compiled with SPSS 26. By using descriptive statistics, t-test and correlation the study discovered that Performance Expectancy, Effort Expectancy and Facilitating Condition have higher effect than Social Influence on behavioral intention to use. The results determine that demographic factors also impact significantly on adoption of e-banking. The findings of the study might assist banking industry to recognize e-banking marketplace and additionally locate customer’s conduct and belief concerning the usage of e-banking services which is fruitful to banks for formulating techniques to expand new structures of banking in the present competitive market.