By Syeda Rifat Ara
Institution of Business Administration Jahangirnagar University
ABSTRACT
The primary objective of this research is to find out the influence of perceived usefulness (PU) and perceived ease of use (PEOU) on the user acceptance of ebanking in Bangladesh. Ebanking has a huge expansion opportunity in Bangladesh. So, it is important to know what factors influence the user acceptance of ebanking in Bangladesh. Theoretical framework is based on the widely used Technology Adoption Model (TAM), which was proposed by Davis in 1989 in his doctoral thesis. A structured online questionnaire is developed to collect data using Google doc. Random sampling method was used with a final sample of 120 respondents. Cronbach's Alpha values of independent variables (0.857 and 0.867) show the reliability of the data. In the KMO test, value of 0.874 indicates the validity. Correlation matrix of PU shows strong correlation among the items of PU, while in the correlation matrix of PEOU, correlations are moderate. In the regression analysis, it was found that perceived usefulness influences the user acceptance by 31%. It is also found that perceived ease of use has no influence. It means that 27 years old TAM model is partially relevant in Bangladesh. Implications are drawn for future research on user acceptance of ebanking in Bangladesh.
Keywords: Technology Acceptance Model (TAM), Perceived Usefulness, Perceived Ease of Use, E Banking, Bangladesh
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Introduction
Ebanking is becoming more widespread and popular in Bangladesh. As on October 31, 2015, number of internet banking customers was 1.5 million. In addition, the number of daily online transaction stood at more than 19,000 amounting to Tk. 590 million. Now, the total number of internet users in Bangladesh stands at around 40 million (Thedailystar.net, 2016). As the number of internet users is quite high and the number of ebanking user is relatively low and as Bangladesh government is encouraging people to use internet more, ebanking has a huge expansion opportunity in Bangladesh. Ebanking is important for the commercial banks because by combining technology with banking, they can generate more profit and can give tough competitions to the competitors. Among the 64 banks, currently 22 banks offer ebanking facilities (Bankerbd.com, 2015). In the recent future, other banks will start providing ebanking facilities to retain existing customers and grab new customers. To stay in the competition; to reduce cost and to meet global standard, commercial banks need to know what are the reasons for which people accept ebanking, so that they can offer better service than their competitors.
Many researches showed that there are several factors that influence a customer to accept e banking. For example  perceived usefulness, perceived ease of use, perceived risk, customer attitude etc. It is very important for the commercial banks to identify what are the influential factors, so that they stay in competition and provide better service to the customers as well as attract prospects. Many research works were conducted throughout the world but no research was conducted in Bangladesh to find out which factors influence Bangladeshi consumers.
The objective of this research is to find out whether the selected factors have influence on the user acceptance of ebanking in Bangladesh or not. Specifically, the research takes two factors as independent variables and performs tests to find out if these factors have impact on the user acceptance, which is the dependent variable. The independent variables are  perceived usefulness and perceived ease of use. Perceived usefulness and perceived ease of use were identified by Davis in 1989, which is popularly known as Technology Adoption Model (TAM). To find out the impact of independent variables on dependant variable, two hypotheses are developed and test.
In the 'Technology Adoption Model' section, theoretical background of this research is briefly discussed. This section also contains the reasons of choosing this model and its importance in Bangladeshi context. The following section, titled as Methodology, covers the methods of selecting the sampling unit and sample size; structuring the questionnaire, collection of data and describes the reasons of selecting specific data analysis techniques. 'Findings' section contains result of tests and interpretation. Detail result is discussed in the 'Discussion' section. Conclusion is drawn providing a
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brief summary of the paper, the only limitation of the research and suggesting scopes of future researches.
Technology Adoption Model
Technology Adoption Model is a famous model by Fred D. Davis (Davis, 1989). It is a widely accepted and widely used model that suggests that whenever a new technology is presented before the users, two factors determine how and when they will use that technology. TAM shows that the determinants are perceived usefulness (PU) and perceived ease of use (PEOU). According to Davis, perceived usefulness is "the degree to which a person believes that using a particular system would enhance his or her job performance". The definition of Davis can be modified in the context of ebanking. A person will use ebanking when he/she will find it more useful than traditional banking system. Again, perceived ease of use is defined as the "degree to which a person believes that using a particular system would be free of effort". In ebanking context, that can be described as how easily a customer can use ebanking service of a bank, whether he/she is a tech savvy or novice. This model was used by many researchers from many countries. Researches were conducted in Pakistan, Malaysia and Turkey to apply this model to describe the user acceptance of ebanking. Two of the three researches show that user acceptance has positive relationship with perceived usefulness and perceived ease of use (Poon, 2008; Polatoglu et al., 2001). However, In Pakistan, it was found that perceived ease of use has no significant impact on the user acceptance (Kazi, 2013). In another study, it was found that along with these two variables, selfefficacy also a variable that matters to the consumers to adopt ebanking (Wang et al., 2003). Till now, some more studies have found that there are some other factors that influence the user acceptance, but PU and PEOU still play a 2 most important roles (Ying et al., 2010; Tan and Teo, 2000).
No such research to find out the factors was conducted in Bangladesh. However, a research was conducted in the year when ebanking started its journey in Bangladesh. Purpose of that research was to find out the satisfaction level of the customer who use ebanking. It was found that they were somewhat satisfied with the newly introduced system (Nupur, 2010). At that time, a very few commercial banks offered ebanking service. Switching options to other banks were limited. Now customers are being provided with lots of options. Competition is increasing as well as complications. Customers are being provided with customized service. Satisfaction level does not show that he/she will not switch from a particular bank. If he/she is provided with better option with less hassle, he/she might switch. For this reason, now it is important to know what are the factors that influence the acceptance of ebanking. This research paper aims to find out if the factors that were proposed about 27 years back by Davis have influence in Bangladeshi customers or not.
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Methodology
As this research paper is aimed at determining whether the TAM is also applicable in Bangladesh or not, quantitative data is used for testing the hypotheses. Research objectives of this research paper suggest that sample should be the persons who use ebanking. So, population of this research paper is the Bangladeshi citizens who use ebanking. As bank accounts are confidential, only the account holder/s has/have access to ebanking of their individual accounts. The sampling unit of this research is the owners of the bank accounts who use ebanking. The sample size of this research paper is 120. An online consumer survey was conducted to collect data. Random sampling method is adopted to collect the data.
A single page questionnaire was prepared using Google Doc. The questionnaire contains twelve likertscale questions and 2 demographic questions and a question on the usage pattern. First twelve likertscale questions were adopted from the paper of Davis and modified according to the objectives of this research paper and in the context of ebanking. First five questions represent the perceived usefulness and next five questions represent perceived ease of use. Next two represent the user acceptance. PU and PEOU are the independent variables. UA is the dependant variable.
Table 1: Scale Items for Variables
Factor 
Items 
Ebanking gives me greater control over my account (PU1) 

Perceived 
The ebanking system provides me with all the banking facilities I want (PU2) 
Usefulness 

(PU) 
Using ebanking saves my time (PU4) 
Ebanking improves the quality of my work (PU5) 

The ebanking system is often confusing to me (PEOU1) 



Perceived Ease 

of Use (PEOU) 





User 

Acceptance 

Link of the online questionnaire was posted in various Facebook and LinkedIn groups, which are related to internet banking. Posts were given once in a week to remind the respondents about the survey. One and half months were needed to collect the data.
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To analyze the data, Statistical software SPSS is used and three tests have been performed. At first, to check the reliability of the collected data, Cronbach's Alpha (1951) is performed. Reliability means that the result of the research is same as the previous studies that were carried under the same conditions with the same variables. As the research is conducted to find out whether results of previous researches are valid in Bangladesh or not, the Cronbach's Alpha test is performed. Secondly, Principal Component factor analysis (Jolliffe, 2002) is performed to measure validity of the collected data. Validity is important to measure because it says whether the measurements or items of a variable in the study behave in exactly the same way as the variable itself. Correlation matrix is constructed to find the correlation among items representing a single variable, KMO test is performed to find the suitability of data for factor analysis. Bartlett's test is performed to find the strength of the relationship among the variables. Finally, multiple linear regression analysis is performed to test the hypotheses. Regression Analysis measures what portion of the dependent variable can be explained by the independent variables. Multiple regression is used because this research is conducted to find empirical evidence of the influence of independent variables on the dependent variable; has more than 1 independent variable and the data is ordinal.
Findings
The hypotheses are derived from the research paper of Davis (1989) and modified according to the objective of this research paper. As a rule of thumb, it is known that in a hypothesis testing, null hypothesis always denotes no relation between the dependent and independent variable. In this research, null hypothesis is that the selected variables have no influence on user acceptance of e banking in Bangladesh. The alternative hypotheses state that there is positive influence of independent variables on the dependent variable.
Hypothesis 1 H _{0}_{A} : Perceived usefulness (PU) has no influence on the user acceptance of ebanking in Bangladesh. H _{1}_{A} : Perceived usefulness (PU) has a positive influence on user acceptance of ebanking in Bangladesh. Hypothesis 2 H _{0}_{B} : Perceived ease of use (PEOU) has no influence on user acceptance of ebanking in Bangladesh. H _{1}_{B} : Perceived ease of use (PEOU) has a positive influence on user acceptance of ebanking in Bangladesh.
Reliability and Validity
To test the reliability of data, this research performed Cronbach's Alpha (1951) test. It is a standard scale reliability test. The test is used to check the internal consistency reliability. Table 2 shows that Cronbach's Alphas for PU and PEOU are 0.857 and 0.867 respectively. Both values are greater than
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the critical threshold of 0.7 as suggested by Nunnally (1967). So, the test shows that the measures are reliable.
Table 2: Reliability test result
Independent Variables 
No. of Items 
Cronbach’s Alpha 
Perceived Usefulness (PU) 
5 
0.857 
Perceived Ease of Use (PEOU) 
5 
0.867 
Source: Analysis of Data Collected
The following table contains the correlation matrix of the 10 items. It is found from the correlation matrix that items representing one variable are positively correlated with each other and negatively correlated with another variable. According to Wong and Hiew (2005), the values of correlation coefficients ranging from 0.50 to 1.0 is considered strong. Among the items of PU, PU1 and PU5 shows high correlation, correlation between PU2 and PU4 is moderate. Among the items of PEOU, the highest correlation value is 0.755, which indicates PEOU3 and PEOU5 are highly correlated. However, moderate correlations exist between PEOU4 and PEOU5, between PEOU1 and PEOU4, between PEOU2 and PEOU5, finally between PEOU3 and PEOU4.
Table 3: Correlation Matrix
PU1 
PU2 
PU3 
PU4 
PU5 
PEOU1 
PEOU2 
PEOU3 
PEOU4 
PEOU5 

PU1 
1.000 

PU2 
.535 
1.000 

PU3 
.570 
.609 
1.000 

PU4 
.515 
.418 
.661 
1.000 

Correlation 
PU5 
.664 
.538 
.636 
.603 
1.000 

PEOU1 
.454 
.400 
.381 
.333 
.495 
1.000 

PEOU2 
.360 
.258 
.372 
.310 
.470 
.633 
1.000 

PEOU3 
.378 
.387 
.446 
.362 
.387 
.635 
.521 
1.000 

PEOU4 
.439 
.283 
.473 
.440 
.518 
.462 
.611 
.465 
1.000 

PEOU5 
.385 
.462 
.422 
.350 
.461 
.634 
.472 
.755 
.458 
1.000 
Source: Analysis of Collected Data
KMO and Bartlett's tests are done before factor analysis. Both of the test results show that items are valid. Test result and interpretation is provided in the Appendix  A.
Factor Analysis is done to check whether all the items are loaded in the two variables as described above. Test result and interpretation is provided in the Appendix  B.
Finally, to test the hypothesis, the research employed Multiple Linear Regression Analysis. From the table 4, it is found that the value of adjusted R² is 0.31, which implies that 31% of the variation in
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user acceptance of ebanking is explained by these two independent variables (perceived usefulness and perceived ease of use). It is found that F value of 27.729 being significant at p = 0.000. Thus, this implies that the entire model in this study is well fit and significant.
Table 4: Model Summary
Model 
R 
R Square 
Adjusted R 
Std. Error of the 
F 
Sig. (pvalue) 
Square 
Estimate 


.322 
.310 
.5824 
27.729 
.000 
Source: Analysis of Collected Data
Results of Table 5 shows that Perceived Usefulness is significantly lower pvalue (p < 0.05) and it
indicates a positive relationship as the standardized coefficient (beta) value is positive. The beta values are what the regression coefficients would be if the model were fitted to standardized data, that is, from each observation, the sample mean is subtracted and then divided by the sample standard deviation. It rejects the null hypothesis H _{0}_{A} and accepts alternate hypothesis, which states that Perceived usefulness (PU) has a positive influence on the user acceptance of ebanking in Bangladesh. In contrast, PEOU is a weak predictor with greater pvalue at 5% significance level (p > 0.05). It means the null hypothesis cannot be rejected. Perceived ease of use (PEOU) has no influence on user acceptance of ebanking in Bangladesh.
Table 5: Coefficients
Model 
Unstandardized Coefficients 
Standardized 
t 
Sig. (pvalue) 

Coefficients 

B 
Std. Error 
Beta 

(Constant) 
1.449 
.509 
2.849 
.005 


.589 
.092 
.610 
6.378 
.000 

PEOU 
.060 
.076 
.076 
.792 
.430 
Source: Analysis of Collected Data
Demographic and frequency of use data is presented in Appendix  C
Discussion
From the test results, it is found that Technology Adoption Model (TAM) proposed by Davis is not entirely true in the context of Bangladesh. Perceived ease of use has no significant influence in the user acceptance of ebanking in Bangladesh. From the response of the questionnaire, it is seen that almost half of the respondents find it somewhat difficult to operate the ebanking system. They find it
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tough to operate and they need give a lot of effort. The result is presented in Appendix  D. It can also be observed from the responses that they encounter minimum error, which is a positive side. The result is consistent with the study of Kazi (2013) that were in the context of Pakistan. Kazi focused on the students. In this research, 88 among the 120 respondents belong to age group 30 or less than 30, which indicates that these respondents are still students or recently have joined the workforce. Another reason of UA not being influenced by PEOU can be the exposure and usage of internet to the mass people. People of Bangladesh have been introduced to internet in the early 90s (Wikipedia). Speed was not good enough to surf the World Wide Web. Optic fiber was introduced in 2006. Still, the speed is much lower than the developed countries. Cost is also higher. So, most of the people do not use internet extensively. People use it to extract the important information and perform crucial tasks, not because it is easy. This result differs from the developed countries like Turkey, Singapore and fast developing countries like Malaysia (Poon, 2008; Polatoglu et al., 2001; Tan and Teo, 2000). Correlation matrix table also indicates that PEOU is not a significantly influencing factor. Because from the correlation matrix table, it is found that the correlation between the items of PEOU is not that good. 4 among 10 correlations are found to be moderate. In the regression analysis, the beta value of PEOU is also insignificant comparing to the beta value of PU (0.076 and 0.610 respectively). However, PU can explain only 31% of the user acceptance of ebanking in Bangladesh. It indicates that there are other significant factors that influence the user acceptance of ebanking in Bangladesh.
Conclusion
This research is conducted to find the influence of two selected variables (PU and PEOU) on independent variable (UA). From the multiple regression analysis, it is found that perceived ease of use has no influence on user acceptance. However, perceived usefulness has influence and 31% of user acceptance can be explained by it. Further research can be to find what the other factors that influence user acceptance are. For example  trust, perceived credibility, perceived risk etc. these factors are already proven influential in many researches done in many developed and developing countries. So, these factors can be also tested in the context of Bangladesh. One limitation of this research is that the population of this research is the people who use ebanking. Therefore, it cannot be generalized for all the people of Bangladesh. Further research can be done considering nonusers of ebanking.
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Appendix  A
KaiserMeyerOlkin measure of sampling adequacy test is performed to find the suitability of data for factor analysis. Kaiser (1974) suggested that the value should be greater than 0.5 for a satisfactory factor analysis to proceed. He further suggested that values ranging from 0.80 to 0.89 are meritorious. Table 7 shows the KMO test value is 0.874 which is, according to Kaiser, is meritorious. Bartlett's test is performed to find the strength of the relationship among the variables. It tests whether the correlations matrix is an identity matrix. If it is an identity matrix, it will indicate that the factor model is inappropriate. Because in identity matrix, the items are totally noncollinear. It means if the items are factor analyzed, It would extract as many factors as items, since each item would be its own factor. Null hypothesis of this test is that the correlation matrix comes from a population in which the items are noncollinear. In table 7, test result shows that the null hypothesis can be rejected as pvalue<0.05. It can be concluded from the test that the strength of the relationship among items is strong and, therefore, factor analysis can be performed.
Table KMO and Bartlett's Test
KaiserMeyerOlkin Measure of Sampling Adequacy. 
.874 

Approx. ChiSquare 
654.698 

Bartlett's Test of Sphericity 
df 
45 
Sig. 
.000 
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Appendix  B
Extraction method is set at Principal component analysis (PCA). PCA is a statistical procedure that uses an orthogonal transformation to convert a set of observations of possibly correlated variables into a set of values of linearly uncorrelated variables called principal components (Wikipedia). Varimax rotation method is used because it assumes that there is no correlation in among the factors in the final solution. Table 8 shows the rotated component matrix. The matrix indicates the correlation of each items with each factor. It can be easily understood from the table that there are two factors in the data. The first five items are substantially loaded in Factor 1 (Perceived Usefulness) and the last five items are substantially loaded in Factor 2 (Perceived Ease of Use).
Table Rotated Component Matrix ^{a}
Component 

1 
2 

PU1 
.756 
.272 
PU2 
.707 
.234 
PU3 
.825 
.254 
PU4 
.782 
.179 
PU5 
.774 
.350 
PEOU1 
.254 
.810 
PEOU2 
.201 
.776 
PEOU3 
.228 
.818 
PEOU4 
.397 
.604 
PEOU5 
.271 
.787 
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
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Appendix  C
Variable 
Frequency 

Gender 
Male 
63 

Female 
57 

Age 
Under 21 years 
16 

21 
 30 years 
67 

31 
 40 years 
20 

41 
 50 years 
12 

51 
years and above 
5 

Frequency of using ebanking 
Daily 
28 

Weekly 
53 

Monthly 
25 

Quarterly 
6 

HalfYearly 
5 

Yearly 
3 
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Appendix  D
Snapshots are taken from the google summary.
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