Investigating Customers’ Acceptance of Online Banking Based on Technology Acceptance Model: An Empirical Study in the Saudi Banking Market

Abstract. The aim of this study was to investigate customers’ acceptance of online banking in the Saudi market by developinga theoretical model based on the Technology Acceptance Model (TAM) and includes a website security factor. It also tested theextent to which we can predict customers’ acceptance of online banking services. Approximately three hundred questionnaireswere collected from customers of different banks to fulfill the objectives of this research. The returned data were analyzed,discussed and compared with previous literature. This study considered three constructs; perceived usefulness, perceived easeof use and perceived website security. It was found that all three constructs directly influence customers’ acceptance of onlinebanking services. The empirical findings of this study provided further insight into online banking adoption in the Saudi market,and highlighted the factors affecting customers’ acceptance of online banking services and concepts. The results supported TAMby confirming its usefulness for prediction of customers’ acceptance of adopting online banking services. It also suggested thatTAM is helpful in finding useful information for the strategy development process. Users’ acceptance of online banking servicesin Saudi Arabia will be enhanced if perceived usefulness, perceived ease of use, and perceived website security are improved.Saudi bankers should focus mainly on the benefits of using online banking services if they want to achieve competitive advantages.