Title: Internet banking adoption: case of Lithuania and Latvia

Authors: Elīna Gaile-Sarkane; Daiva Jurevičienė; Viktorija Skvarciany; Juris Iljins

Addresses: Institute of Production and Entrepreneurship, Riga Technical University, Kaļķu str. 1, LV-1658 Riga, Latvia ' Institute of Finance, Mykolas Romeris University, Ateities str. 20, LT-80303 Vilnius, Lithuania ' Department of Financial Engineering, Vilnius Gediminas Technical University, Saulėtekio ave. 11, LT-10223 Vilnius, Lithuania ' Institute of Production and Entrepreneurship, Riga Technical University, Kaļķu str. 1, LV-1658 Riga, Latvia

Abstract: The banking sector has developed and extended usage of different services at a distance using the internet in the last decade. Internet-based banking services dominate over other historically provided alternatives. This paper explores the adoption of internet banking in Lithuania and Latvia. Internet banking success model was developed based on four main factors - ease of use, perceived risk, trust, and perceived usefulness. A survey of Lithuanian and Latvian respondents was carried out. Correlation and regression analysis was used to determine which factors influence intention to use internet banking. The results showed that the most important in both countries is perceived risk, which has a positive direct impact. Moreover, two additional factors were distinguished and analysed in the study, they are website design and customers' satisfaction with e-banking services. Limitation of the study is the respondents - they were individuals, thus the results do not reflect companies' intention to use e-banking system.

Keywords: internet banking; adoption model; ease of use; perceived risk; trust; perceived usefulness; website design; customers' satisfaction with e-banking services; regression; correlation analysis.

DOI: 10.1504/IJLC.2017.084234

International Journal of Learning and Change, 2017 Vol.9 No.1, pp.46 - 58

Received: 12 Jan 2016
Accepted: 19 Jul 2016
Published online: 21 May 2017 *

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