An investigation of the adoption by banks and acceptance by bank customers of internet banking in the Sultanate of Oman

Internet banking has been part of the American and European banking system for many years, but only since 2005 have Omani banks adopted this technology. There is little research on Internet banking adoption in Oman and no research on Omani customers' acceptance of Internet banking. This two-phase research study used the unified theory of acceptance and use of technology (UTAUT) as a theoretical basis. The UTAUT model was modified by adding three constructs (culture, customers' attitude towards computers, trust) to investigate the key constructs influencing customers acceptance of Internet banking.

In phase one fourteen managers in seven Omani banks were interviewed to clarify their understanding of Internet banking and determine the main challenges in the early stages of system adoption. The banks had a clear understanding of Internet banking terminology and identified a number of barriers in the early stages of Internet banking adoption which could be classified into internal and external barriers. The research identified the main constructs affecting customers' acceptance of Internet banking from the managers' perspectives and resulted in the exclusion of the 'voluntariness of use' moderator from the original UTAUT model.

The second phase explored the key constructs affecting customers' acceptance of Internet banking. Multivariate analysis was used to analyse questionnaire responses from 611 customers. The results identified that one independent construct 'attitude towards Internet banking' comprising six sub-constructs influenced customers' intentions towards Internet banking. Gender, age and educational level moderators influenced the independent construct.

Based upon these findings a model of Internet banking acceptance and use in the Omani context was developed that illustrates the key constructs affecting customers' acceptance of Internet banking in Oman. This is considered the major contribution of this research. The study offers potential solutions to overcome Omani customers' loyalty to traditional banking and encourage a shift towards adoption of Internet banking.