The adoption of electronic banking in Tunisia

8/7/2019 The adoption of electronic banking in Tunisia

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The adoption of electronic banking

in Tunisia: an exploratory study

Author: Dhekra AZOUZI

1 The adoption of electronic banking inTunisia: an exploratory study


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Motives

The prompt explosion of innovations from the steam engineto technological innovations

The crucial implication of technology in all fields andparticularly in business and finance

Tunisia was among pioneer countries to adopt technologicalinnovations

Studies focusing on e-banking in Tunisia are scarce



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The central question

Traditional paper-based transactions

Electronic network transactions

Tunisian customersattitudes toward

e-banking?



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Organisation

Literature reviewTunisian banking sector-background information

HypothesesResearch methodologyEmpirical resultsConclusionLimitations and future research



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Literature review

Banking is essentiel, Banks are not (Bill Gates, 2008)

E-banking is " the automated delivery of new and traditional banking products and servicesdirectly to customers through electronic,interactive communication channels. " (FFIEC, 2003)

Ex ample : Automated Teller Machines (ATM), Internet, personal computers, mobile phones,



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Literature review

Factors influencing e-banking adoption decision: (Lee, 2009)

What are these perceived risks and benefits?

Perceived

risks

Perceived

benefits

N egative factors Positive factors



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Literature review

PerceivedPerceived risksrisks:: A A combinationcombination of of uncertaintyuncertainty andand seriousnessseriousness of of outcomeoutcome involvedinvolved

(Ba(Bauer,uer, 19671967))

T The potential for loss in the pursuit of a desired outcome of using an ehe potential for loss in the pursuit of a desired outcome of using an e- -serviceservice (Peter and Ryan,(Peter and Ryan, 19761976))

-- TheThe perceivedperceived riskrisk isis multidimensionalmultidimensional (Cunningham, 1967; Jacoby and Kaplan, 1972and Bellman et al. , 1999).

SixSix facetsfacets: :

financial, performance, social, physical, privacy and time-loss.



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Literature review

PerceivedPerceived risksrisks in ein e--bankingbanking::

Financial risk : the potential monetary loss due to transactions errors

Performance risk : the potential loss due to malfunctions of onlinebanking websites or unexpected disconnection from the Internet

S ocial risk : the fear of being seen in a negative way by others (Kuisma et al. ,2007 and Agarwal et al. , 2009)

Privacy risk : the potential loss due to fraud or hackers (Lee et al. , 2009)

Time risk : It is the time s loss due the lateness in receiving the payment orthe difficulty of navigation (Lee et al. , 2009)



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Literature reviewSix or five perceived risk facets?

Using e-services:is not harmful,

no threats to the human life,

N o physical risksN o physical risks (Featherman and Pavlou, 2003)

O nly fivefive perceived risk facets in e-banking



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Literature review

PerceivedPerceived benefitsbenefits in ein e--bankingbanking: :

Direct benefits: immediate and tangible advantages

Ex ample: the lower transaction handling fees, higher deposit rates, opportunities to winprizes and extra credit card bonus points, immediately available and transparent data, (Lee, 2009)

Indirect benefits: intangible and difficult to be assessed advantages

Ex ample: the round-the-clock availability, the wide range of investment opportunitiessuch as stock quotations and news updates (Lee, 2009)



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Tunisian banking sector-backgroundinformation

The N ational Commission for electronic commerce andelectronic exchanges creation since 1997

A law regulating these electronic exchanges was promulgatedon the 9 th of August 2000

The N ational Digital Certification Agency creation in 2001



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The number of Tunisian internet users (January 2009): 2 810 000

The number of credit cards (30/03/2009): 1 912 333

The number of ATMs (30/03/2009): 1 289

Tunisia is classified as the 38 th country using information technologyin the world (among 134)

Tunisia remains the leader in Africa and the 7 th one in theMediterranean (Global Information Technology Report 2008-2009 ; Api N ewsn3/2009)



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The Tunisian Post has launched several electronic services:

The E-clearing interbank company creation in 1999

The WebTelegram (2003)

E-DIN AR electronic payment platform SPS (Le Blanc, 2005)

The CCPnet



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Hypotheses

The younger generation are more computer savvyand thereby are more willing to adopt e-banking (SadiqSohail & Shanmugham, 2003)

The higher the respondent is literate and particularlyPC-literate, is the more likely to adopt e-banking (Brownet al., 2003 and Sadiq Sohail & Shanmugham, 2003)



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Research MethodologyA questionnaire with two parts:

the demographic profile of the respondentthe banking profile of the respondent

A pilot study

Data collection method: any person having a current account

A sample of 82 respodents

Sphinx (V5)

1 5 The adoption of electronic banking inTunisia: an exploratory study


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Demographic profile

PercentageCountDemographic characteristics

61%20.7%7.3%

11%

50176

9

AgeBetween 18 and 30Between 31 and 40Between 41 and 50

Above 50

43.9%56.1%

3646

GenderMaleFemale

9.8%

58.6%19.5%12.2%

8

481610

Instruction-levelBaccalaureate degree

Master s degreeDoctorateO thers



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R espondent banking profile

95% of respondents have access to internet but only few of them use it for banking purpose

52.4% of the respondents prefer to go directly to banks

The ATM is used solely or jointly to traditional banking by48.8% of respondents

Minitel banking is doomed to failure (1.2% of respondents)



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Results

Young, PC-literate respondents are using or are willing to useelectronic banking particularly ATMs

Women (56.5%) prefer conventional banking more than men

(47.2%)

52.8% of men seem choosing ATMs against 45.7% of women

Young respondents are favoring on line banking

All old respondents are traditional banking defenders



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Results

Instruction s and PC familiarization s levels: two fundamentalvariables influencing the adoption of electronic banking

75% of novices in using computers are loyal to traditional

banking

25% try to use ATMs

57.1% of experts are relying on ATMs in order to bank

61.1% of respondents having advanced computer knowledgeare loyal ATMs customers



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Results

The number of internet banking s adopters is growing as and whenthe respondents computer knowledge is brushed up

PC familiarization s level and preference for banking(Sphinx 5 s output)

MinitelInternetATMTraditionalbanking

Banking s channel

PC familiarization s level

0.0%57.1%57.1%21.4%Expert

2.8%25.%61.1%58.3%Advanced computer knowledge

0.0%17.4%39.1%47.8%Average knowledge

0.0%0.0%25.0%75.0%N ovice

0.0%0.0%0.0%100%N o knowledge of computer



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Results

Gender, instruction and PC familiarization levels and ageare crucial variables impacting the customers attitudestoward the adoption of e-banking

Sphinx (V5) analysis shows, via the chi-2 test, thatawareness of e-banking products and services, ease of use, willingness to adopt e-banking, convenience,internet access and attitudes toward change influencesignificantly the adoption of e-banking

Such results differ slightly from those found by SadiqSohail and Shanmugham (2003)



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Conclusion

Thanks to information technologies, banks are being able toreach their customers anywhere at any time

The conventional banking amateurs are primarily the olderwomen having no computer knowledge

Awareness of e-banking products and services, ease of use,willingness to adopt e-banking, convenience, internet accessare key factors

The respondents attitudes toward change are a crucial factorbehind e-banking non-adoption



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Limits and future research

Limits

The sample size is limited

The sample is primarily composed of the educated Tunisians and

various opinions might therefore be not represented

Future research

A more representative sample of Tunisians

Comparative study focusing on differences in adoption processesbetween different forms of banking channels


Documents

The adoption of electronic banking in Tunisia