FACTORS AFFECTING CONSUMER ADOPTION OF INTERNET BANKING IN MALAWI

Abstract

Internet banking is relatively new technology in Malawi. The aim of this research was to investigate factors that affect the adoption of Internet banking by consumers in Malawi. The study was motivated by the fact that most Internet banking had introduced Internet banking services but adoption levels remain very low as evidenced by long queues in banking halls and report by the Reserve Bank of Malawi (RBM), that Internet banking was the most underutilized banking delivery channel in Malawi. Understanding factors that affect the adoption of Internet banking will allow banks to create solutions and plans that attract customers to their Internet banking services, thus enabling them to gain a greater share in the banking industry market. Research data was collected using a questionnaire from 257 bank customers from Lilongwe and Blantyre. Collected data included social demographic characteristics, consumer perception and attitudes towards Internet banking. The data was analyzed using descriptive statistics and regression analysis in STATA version 11. Graphs and percentages were used to present the results. The study found relationship between social demographic factors, perception, attitude and adoption of Internet banking in Malawi. The theoretical contributions and the practical implications of the findings are that bank managers should direct Internet banking marketing programs towards the middle aged, higher income and well educated customers. Marketing programs should focus on changing consumer attitude towards technology - Internet banking.