Perceived Barriers towards Adoption of Internet Banking among Rural Dwellers: An Empirical Study of Pakistan

Abstract

Internet banking is an essential component of banking services growing rapidly in developed countries unlike developing countries. The study attempts to find the perceived barriers towards the adoption of internet banking among rural dwellers of Pakistan and recommend ways for banks to remove these barriers. Different variables are taken into consideration as independent variables which affect the adoption of internet banking particularly among the rural inhabitants.

This research aims to provide recommendations for the banks offering internet services after analysing the barriers to adoption of internet banking perceived by the people living in rural areas of Pakistan. In this paper, highly perceived barriers identified by previous studies are demonstrated in literature review in order to form a basis for developing questionnaire and comparing the findings. Data were collected from 150 people residing in villages. The barriers faced by rural residents are categorized under technological and psychological barriers. Findings show that the poor internet services, loss of one to one relationship with human tellers, the low perceived value of internet banking as compared to traditional banking, safety and security concerns and lack of knowledge, education are perceived to be the most significant barriers to adoption of internet banking among rural dwellers of Pakistan. Hypothesis will be developed to show the relationship between different variables and performance.