Policies and Sustainable Economic Development | 359 Factors Influencing the Adoption of Electronic Banking in Vietnam PHAN THUY KIEU International University - Vietnam National University Ho Chi Minh City phanthuykieu2006@gmail.com NGUYEN DINH KHOI International University - Vietnam National University Ho Chi Minh City PHAM THI BICH UYEN International University - Vietnam National University Ho Chi Minh City NGO DANG HOAN THIEN International University - Vietnam National University Ho Chi Minh City Abstract The paper mainly adopts the extension of the theory of reasoned action from prior studies The first version modifies Technology Acceptance Model with Decomposed Theory of Planned Behavior and Perceived Risk in which eight constructs including Actual Usage, Behavioral Intention, Attitude toward using, Perceived Behavioral Control, Subjective Norm, Perceived Usefulness, Perceived Ease of Use, and Perceived Risk are used to examine which constructs directly influence the adoption of electronic banking by individuals in Vietnam After analyzing 405 valid questionnaires with SPSS and AMOS software version 20, the study, developed based on two common models of behavioral studies, shows that seven out of eight hypotheses are significant to the direct relationship between intention and attitude In addition, Perceived Risk is considered a barrier factor of using e-banking The paper also suggests the groundwork for further studies in Vietnam Keywords: electronic banking; traditional banking; tra; tam; tpb; perceived risk; Vietnam 360 | Policies and Sustainable Economic Development Introduction One of the most important phenomena of this age is revolutionizing of traditional banking through the developing of electronic communication and access of huge individuals to the Internet The rapid technological progress and development in the global financial market (Ozuru, 2010; Jonhson, 2005) has led to a new chapter on today’s trend in the banking industry Telecommunication and technological innovations allow banks approach their customers and provide them with not only general information but also the chance to experience interactive retail banking transactions With the convenience and efficiency, e-banking has become an important channel to sell products and services, where customers not need to queue up and even suffer their constrained manner contacted to make the bank due to offering “anytime, anywhere” banking facilities (Lassar et al., 2005) Serving customer without the need of frontline staffs while banks benefits from staff reduction, lesser branch sizes and paperrelated works (Tan and Teo, 2000) are the great main motivation to use the online banking (Bruno, 2003) Today, personal service and convenience are still the critical factors in the banking relationship, but they are defined differently Consumers still want to bank with a financial institution, but they not necessarily want to go to the bank They are utilizing computers and technology They are now comfortable with personal computers and other electronic devices They expect fast, efficient, and accurate service and the only way to cost effectively provide the instant, quality service that customers demand For all these reasons, the banks delivery systems are completely changing A better understanding of factors that influence e-banking adoption in highly developing market like Vietnam may help to further increase the adoption rates in countries with improving infrastructures and economies (Davis, 1989; Mathieson, 1991) The rest of this paper is organized as follows Section describes relevant literature in the area of consumer behavior in the acceptance of e-banking, including of e-commerce and information technology; theoretical models of information technology usage Section discusses hypothesis development and the theoretical foundation of our research model In section 4, it draws the research methodology Section is the results of data analysis, and Section contains managerial implications and discussion The final section is the conclusions and directions for future research Literater review 2.1 E-commerce, e-banking, and adoption of information technology 2.1.1 E-commerce is the trading or facilitation of trading in products or services using computer networks via the Internet With the popularity of the Internet, many enterprises and individuals are involved in e-commerce Up to present, applications of e-commerce have achieved lots of substantial progresses E-commerce is playing a very important role in the economic development Large numbers of buyers and sellers Policies and Sustainable Economic Development | 361 interact with each other through digital transactions These interactions promote the evolution and shape complex structures of e-commerce market 2.1.2 Electronic banking (E-banking) Electronic Banking is simply the use of electronic means to transfer funds directly from one account to another, rather than by check or cash (Daniel, 1999) The rapid advanced in technology in banking industry forced players to re-formulate the information technology strategies that they employ to remain competitive Consequently, e-banking becomes more popular that most commercial banks must pursue However, the transaction in the branch is still the most common method used for bank transactions in Vietnam in relation the Vietnamese habits and culture to restrain the use of banking services Moreover, e-banking services in Vietnam started late as compared to many developed countries The use of e-banking has brought many benefits among which include: no barrier limitations; convenient; lower cost; modern practices and fast services As a result, customers prefer the use of e-banking because it saves time; it makes possible for the use of innovative product or service at a low transaction fee Besides, many commercial banks have to upgrade the information technology with higher security quality to keep their current customers and attract new customers 2.1.3 User acceptance or adoption of information technology Saga and Zmud (1994) declared that consumers’ acceptance or adoption of information technology is defined as ‘‘the act of receiving information technology use willingly” The findings from user acceptance research suggest that when users are presented with a modern software package, a number of factors influence their decision about how and when they use it In the past two decades, several theories have emerged that offer deeper insights into acceptance of information technology Among these theories, the technology acceptance model (TAM) has received more attention Several theories reveal the factors that may affect consumers’ willingness to use an online financial service They consist of (1) Theory of Reasoned Action (Fishbein and Ajzen, 1975); (2) Decomposed Theory of Planned Behavior (Taylor et al 1995); (3) The first modified version of Technology Acceptance Model; 2.1.4 New opportunities for banking sectors in Vietnam The commercial banks in Vietnam need to expand more modern products rather than deliver information and prior basics services However, to improve and diversify e-banking services requires huge investment in information technology This is a barrier to introduce new value added services such as selling insurance, investment products, or market stock quotes Telephone banking can bring financial services to the home or office, especially if they are affordable screen phones By noticing how much interest the customer expresses, the banks can apply Interactive videos to the customer to maintain personal contact while still lowering the expense of delivery service With an interactive video, commercial banks can reduce labor force in their branch Complex life insurance products, 362 | Policies and Sustainable Economic Development open brokerage accounts, customized services can be widely available where needed The interactive videos will be cost effective expertise The internet allows banks to offer products to customers outside the normal customer base of a branch Banks are aware of the customer’s need for these services and plan to make them available before other sources 2.1.5 Drawbacks First of all, commercial banks are facing with some potential dangers and issues to be taken into account Because of increasingly allowed customers to bank outside of traditional bank facilities like Automated Teller Machines (ATM) or electronic home banking systems Nevertheless, customers only contact with their banks through (rather unsophisticated) electronic interfaces This also leads to the major difficulties in integrating the legacy systems of a typical bank and selling additional products to customers (cross-selling) For example, the insurance companies took the opportunity of that to grab business from banks, selling savings products to customers through their extensive distribution network Similarly, the decrease in human interaction with customers could also lead to a less sophisticated understanding of their needs, as they are not always able to express comments, criticisms or requests for new products while interacting with machines 2.2 Theoretical models of information technology usage The first-line research has employed intention-based models, which use Behavioral Intension to predict usage and in turn, focus on the identification of the determinants of intention, including: (1) The theory of reasoned action (TRA) is a behavioral intention model, developed by Fishbein and Ajzen (1980) to predict human behavior in general; including the performance of any voluntary act, unless intent changes between assessment and performance of that behavior and whether a behavior will occur (Ajzen and Fishbein, 1980; Fishbein and Ajzen, 1975) Moreover, Sheppard et al (1988) point out that the TRA was effective in predicting different behaviors (e.g., study a few hours, go to a weekend job, or write a letter) In TRA, attitude (ATT) towards a behavior and subjective norm (SN), are identified as determinants of behavior Figure The theory of reasoned action (2) The First modified version technology acceptance model (TAM1) TAM is an adaptation of TRA to explain specifically computer-usage behavior (Davis, 1989) In the TAM, Davis proposed Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) as two theoretical constructs affecting ATT towards a technology, which affects the users’ behavior intention (BI) to the technology PU is a Policies and Sustainable Economic Development | 363 strong predictor of behavioral intentions in different environments while TAM describes PEOU has an indirect effect through PU and ATT on the BI TAM has become a widely used model for predicting the acceptance and use of information systems, and has recently been applied to predict internet adoption Unfortunately, the orignal TAM does not take into account prior experience, age, gender and other personal characteristics That is why the researchers adapt the first modified version TAM (TAM1) Figure The First modified version of technology acceptance model However, TAM1 has still not tested with actual measures of usage behavior fully There are studies claimed that TAM’s fundamental constructs are unable to explain fully the variances in intention Moreover, one key benefit of using TAM1 to understand system usage behavior is that it allows other factors to be incorporated easily into its basic framework, if desired, to explain better the effects of external variables on system usage (Hong, 2001), as well as factors influencing the extent of use of the internet in financial services (McKechnie, 2006) As a result of this, it is necessary to integrate TPB and TAM for the conceptual model measured the willingness, attitudes and intentions towards using ebanking (Pavlou, 2003; Jaruwachirathanakul, 2005; Verhagen, 2006; Kim, 2006) Furthermore, this integration will be combined with other behavioral constructs to verify how technology factors affect to adopt ebanking in Vietnam (3) That is why the second line of research is added to predict user intention The theory of planned behavior (TPB) was developed by Ajzen (1988) The theory proposes a model which can measure how human actions are guided It predicts the occurrence of a particular behavior, provided that behavior is intentional The extension of the original TRA led to the formation of as the introduction of a new construct with three factors: ATT, SN and Perceived behavioral control (PBC), which reflects perceptions of internal and external constraints on behavior In the TPB, Ajzen (1991) incorporates PBC as a determinant of behavioral intention toward behavior In the contrary, intention in turn relies on attitudes, SN and PBC (Ajzen, 2006) However, the researchers also choose Decomposed TPB (DTPB) of Taylor and Todd (1995), showed the effective guidance and fuller understanding of technology usage The core concept of the DTPB is based on the assumption that individuals make rational decisions and their actions are also based on the systematic use of information and resources available to them Figure illustrates the decomposed theory of planned behavior 364 | Policies and Sustainable Economic Development Figure Decomposed theory of planned behavior (Ajzen, 1991) (4) The theory of perceived risk Considering the importance of Perceived Risk, proposed by Bauer (1960), suggested in the context of consumer behavior benefits are often accompanied by risk, this research extends an area of information systems by looking into this factor integrated to the research framework of the ebanking in Vietnam Risk is the combination of the probability of an event and its consequence when there is at least the possibility of negative consequences (Asnar, 2008) Perceived Risk is the uncertainty that consumers confront when they are not capable of forecasting the consequences of purchase decisions In a marketing (Lim, 2003) defines perceived risk as the nature and amount of risk perceived by a consumer in contemplating a particular purchase action Perceived risk is a major affecting intention to adopt or continue using a good or a service, including financial risk, performance risk, physical risk, social risk, psychological risk and time risk (Gan, 2006) In the online context, prior studies suggest the inclusion of perceived risk due to its importance in influencing online consumer behavior (Pavlou, 2003; Schlosser et al., 2006), especially in the area of e-banking (Gerrard et al., 2003) Existing studies have produced mixed results on the role of perceived risk in the transacting online (Yousafzai et al., 2003; Chen and Dhillon, 2003) 2.3 The definition of concepts Constructs Perceived usefulness Perceived ease of use Subject Norm Attitude Policies and Sustainable Economic Development | 365 Constructs Perceived Behavior Control Behavioral Intention Behavioral Usage Perceived Risk Hypothesis development and research framework 3.1 The development of hypotheses 3.1.1 Perceived Usefulness and Perceived ease of use to adopt using ebanking Perceived Usefulness (PU) has formally been defined as the extent to which a user subjectively believes that the use of a new technology or a system will be useful or will improve his/her performance In terms of PU, there is also extensive research in the information systems community that provides evidence of its significant effect on usage intention (Lee, 2009; Cheng, 2006; Wang, 2003; Chang, 2010) The ultimate reason people employ e-banking that they find the system useful to their banking transactions Meanwhile, Perceived Ease of Use (PEOU) is defined as the degree to which an individual believes that using a technology or a system will be effortless (Hamid, 2008; Huang, 2011; Lee, 2009; Shen, 2010) Gu and Suh (2009) proposed that the systems need to be both easy to learn and easy to use to make the e-banking systems more useful With high reliability of PEOU and PU as effective factors, Davis (1989) found that these two factors have strong relationship with actual usage of information technology systems Firstly, PU has stronger correlation with usage of computer technology in comparison with PEOU because users always paid more attention to the necessity of using a technology Secondly, PU also seen as being directly impacted by PEOU as the ease in a system usage creates a potential impact on users’ perception of the usefulness of a system Based on this logical inference, the study proposed the first hypothesis: H1: Perceived ease of use and Perceived usefulness positively influence the use of e-banking 3.1.2 Perceived Usefulness and Attitude towards using e-banking PU has not only been among the great priority in the use of e-banking but also a major factor that affects attitude towards acceptance of information systems Previous authors (Taylor and Todd, 1995; Parthasarathy, 1998; Karahanna, 1999, and Hardgrave, 2003) found that only PU (Relative advantage) was a significant determinant of attitude towards using e-banking Therefore, we proposed the second hypothesis: 366 | Policies and Sustainable Economic Development H2: Perceived usefulness positively influences attitude towards using ebanking 3.1.3 Perceived usefulness and Behavioral Intention to use e-banking Several works have shown that PU is an important antecedence to behavioral intention to adopt and use technology (Davis, 1989, Venkatesh, 2000) In the e-banking context, it is presumed that the level of usefulness which e-banking offers above regular banking methods could affect intentions towards adoption and usage Across many empirical tests of TAM, perceived usefulness has a significant relationship with usage intentions Therefore, the following hypothesis is tested: H4: Perceived usefulness positively influences Behavioral Intention to use e-banking 3.1.4 Attitude towards using and Behavioral Intention to use e-banking Behavioral intention, as defined as a person’s intention to perform a certain behavior, can be used to predict corresponding behavior as long as the behavior is under volitional control, i.e., if the person can perform the behavior voluntarily (Ajzen, 1980) Consequently, “intention is assumed to capture the motivational factors that influence a behavior; they are indicators of how hard people are willing to try, or how much of an effort they are planning to exert, so as to engage in a behavior” (Ajzen, 1991) The intention strength is decided by the subjective probability that a person will implement the behavior, and this is weighted by setting the subject along with a subjective probability involving the relationship between the person and the behavior As mentioned before, a person’s intention to perform a certain behavior is influenced by the person’s attitude and the subjective norms toward the behavior Empirical researches support the strong relationship between behavioral intention and behavior (Fishbein, 1975) TAM emphasized that a positive attitude directly affects an individual’s intention to use the information systems Thus, attitude towards using information system is the fundamental predictor of the users’ behavior intention to use Moreover, previous authors imply that attitudes directly impact the intentions to adopt internet banking (Tan and Teo, 2000; Hernandez, 2007) Consequently, the study proposes that: H3: Attitude toward using positively influences Behavioral Intention to use e-banking 3.1.5 Perceived Behavioral Control and Behavioral Intention TPB asserts that it is possible to measure Perceived Behavioral Control people’s perception of the ease or the difficulty in performing the behavior of interest (Ajzen, 1991) PBC is as an exogenous variable that has both a direct effect on actual behavior and an indirect effect on actual behavior through intentions (Haghighinasab, 2009) Firstly, the indirect effect is based on the assumption that PBC has motivational implications for behavioral intentions When people believe that they have little control over performing a behavior due to a lack of requisite resources and opportunities, their intentions to conceptualized in the literatures in various means Moreover, risk level associated with certain dimensions will be elevated under a different context Although studies 368 | Policies and Sustainable Economic Development showed perceived risk as an important factor that influences online shopping behavior (Doolin, 2005), there are still limited studies to identify risk dimensions in this context (Cases, 2002) Moreover, studies indicated perceived risk as an important influences online banking adoption (Cunningham, 2005; Polatoglu, 2001) Accepting the key role of perceived risk in e-banking, finding an operational segmenting variable that could both reduce customers risk perception and increase influence e-banking adoption, would be great managerial interest Some prior studies found that perceived risk is negatively influenced attitude (Schmiege, 2009; Abroud, 2010) Thus, the same hypothesis is tested in this study: H7: Perceived Risk negatively influences Attitude toward using e-banking 3.1.8 Behavioral intention and Actual Usage e-banking In previous studies, the behavioral intention to use is found to be a predictor of actual use and has been used as a dependent variable in several studies (Agarwal, 1997; Davis, 1989; Karjaluoto, 2002) In ebanking context, it is presumed that an individual with high intention to adopt e-banking will use it more frequently In other words, behavioral intention will increase the number of times using services within a specific period of time Thus, the last hypothesis is tested: H8: Perceived behavioral intention positively influences the number of times of e-banking usage 3.2 Research model From the above hypotheses, we develop the research framework presented in Figure Figure Research framework Research methodology 4.1 Scale development The questionnaire consisted of 48 items adapted from previous literatures with minor modifications Factors from TAM model (Perceived Ease of Use, Perceived Usefulness, Attitude toward e-banking and Intention to use e-banking) is adapted mostly from Cheng et al (2006) Policies and Sustainable Economic Development | 369 Subjective Norm was constructed based on the questions of Wu & Chen (2005) and Nor & Pearson (2007) Perceived Behavior Control was adapted from Wu & Chen (2005), Shih & Fang (2004) In addition, Trust is a wellknown construct on the usages of internet, thus it is built from Amin (2007), Jahangir and Begum (2008); Yousafzai et al (2009) Perceived risk is set up based on Featherman and Pavlou (2003) These items were measured using 5-point Likert scale multiple choices, anchored by strongly disagree and strongly agree Lastly, the actual usage was measured by getting information on the frequency of using electronic banking of respondents 4.2 Scale validation Firstly, a phrase of exploratory qualitative analysis was conducted by interviewing with experts in banking industry Employing a semi-structured questionnaire, researchers aim to fully understand the issue of e-banking in Vietnam context The results are utilized to modify the questions Subsequently, pilot test of 69 individuals, including experts who play major roles in determining strategic direction in implementing Internet banking for corporate business groups, 15 managers of leading Internet banking service providers, 17 staffs and 32 customers, was employed to adjust the logic in the questions once more The result is a fully-developed questionnaire for the primary fieldwork 4.3 Sample size and sampling method The sample size was calculated by a formula ∗ (p) ∗ (1 − p) Sample size = ss = In that: The confidence level of 95% => z= 1.96 P: the percentage of respondent who actually fill in the questionnaire In this study, p is expected to be 0.7 thanks to the convenience sampling method that this research adopts C: the maximum margin of error accepted In this study, c =0.05 (5%) With these statistics, the least sample size of this study equals 322 respondents The sampling technique to be employed is convenience sampling methods as it can achieve a large number of respondents in an effective and quick approach and a higher response rate Specifically, we deliver the questionnaire to users of e-banking services and bankers via the occupation and the relationship of the researchers 4.4 Data analysis method For the proposed theoretical model, the appropriate technique is the structural equation modeling (SEM) This research utilizes two statistical softwares: SPSS and AMOS 20 and the collected data are carefully examined through multiple steps First of all, the data is analyzed using SPSS 20 to 370 | Policies and Sustainable Economic Development investigate the latent constructs (through EFA) (Gorsuch, 1983) The constructs extracted in the EFA is then examined thoroughly as suggested by Anderson and Gerbing (1988) Secondly, the CFA is carried out to scrutinize the reliability, convergent and discriminant validity and the level of fitness With respects to the fitness of the model to the data, all goodness-of-fit statistics satisfied the required thresholds (CMIN/df < 2; GFI, CFI >0.9; AGFI > 0.9, RMSEA < 0.05), indicating good fit between the model and the observed information (Hu and Bentler, 1999; Hair et al., 2010) Lastly, structural equation modeling is implemented to predict the proposed hypothesis from the validated set of data The results are summarized in Table and Results Turning to the validity assessment of the data, the study investigates both convergent and discriminant validity given their different purposes The convergent validity ensures that the observed items effectively reflect their underlying factor As shown in Table 1, the composite reliability is higher than 0.7 and the average variance extracted (AVE) is higher than 0.5 Further, the standardized regression weight of each item is higher than 0.5 Thus the convergent validity is achieved In the test of discriminant validity, square root of AVE of a construct is taken is compared in the correlation table Table demonstrated the correlation table with the square root of AVE in diagonal The square root of AVE higher than the highest coefficient correlation of that construct with others indicates that the data safely passes the discriminant validity test Table Regression weight, Cronbach’s alpha, AVE and CR Construct Perceived Usefulness Subjective Norm Intention Perceived Behavior Control Policies and Sustainable Economic Development | 371 Construct Attitude toward e-banking Perceived Ease of Use Perceived Risk Overall Goodness-of-fit CMIN/df: 1.108 GFI: 0.947; CFI: 0.991; TLI: 0.990 RMSEA: 0.016 Table Correlation table Perceived Ease of Use Perceived Usefulness Subjective Norm Intention Perceived Behavioral Control Attitude toward e-banking Perceived Risk Moving to the last step, structural equation modeling is employed to analyze the proposed path in the conceptual framework All hypotheses adapted from the well-developed TAM model are accepted with the p-value lower than 0.05 Among the factor in the TBP model, Perceived Behavioral Control does not have a significant impact with Intention Lastly, trust strongly correlates with Attitude and Perceived Risk also manifests a significant and negative impact with Attitude Table illustrate the hypothesis testing results 372 | Policies and Sustainable Economic Development Table Hypothesis testing results Hypothesis Perceived Ease of Use -> Perceived Usefulness Perceived Usefulness -> Attitude Perceived Risk -> Attitude Attitude -> Intention Perceived Usefulness -> Intention Subjective Norm -> Intention Perceived Behavioral Control -> Intention Usage Intention -> Actual Use *** p < 0.0001; **p < 0.01; *p < 0.05; n/s p > 0.05 In line with previous studies on TAM model in electronic banking context, the high level perceived ease of use lead to an increase in the perception of usefulness (Gu and Suh, 2009) PU then manifested significant impacts on both attitude and behavioral intention, which is furnished by very high regression weight of 0.425 and 0.304 respectively This result is similar to previous scholars such as Taylor and Todd (1995), Hardgrave (2003), and Venkatesh (2000) Lastly, the direct, one-way relationship of attitude, behavioral intention and actual usage was also confirmed in this study, identical to Tan and Teo (2000) This indicated the well-established theory that favorable attitude will lead to higher intention of performing an action and eventually to the actual performance of such action Among the other two constructs manifested from the TPB framework, only subjective norm manifested significant positive relationship with Behavioral intention in this study Thus, the H6 is confirmed with the standardized regression weight of 0.128 Obviously, Vietnam has a collectivism culture, and the approval of surrounding people plays a crucial role in the intention to act of an individual Perceived behavioral control, however, has no impact (H7 with the standardized regression weight of 0.055) That means in this context, PBC is not as an additional determinant of intentions and behavior towards using e-banking in Vietnam Last but not least, the negative effect of perceived risk to behavioral intention is confirmed, as H8 is significant in this study A frightening perception of a negative outcome is what prevented people from using ebanking services Risk-adverse is a nature in Asian country and Vietnam is no exception Noticeably, the impact is quite strong, with the significant level below 0.01 and the standardized regression weight of -0.102 To be successful in e-banking services, most banks have to deal with the perceived risk in customers’ mindset Figure shows the testing results with denoting the significant levels Policies and Sustainable Economic Development | 373 Figure Result for hypothesis testing Discussions and implications From this result, this study draws out meaningful recommendations for both theoretical and managerial aspects First of all, the study would enable the banks executives and the policy makers of the bank and financial institutions to be aware of e-banking as a product of electronic commerce The e-banking services should be user-friendly and effortlessto-use to meet customer satisfaction and needs Moreover, e-banking services should cover at least most of the functions original banking method, and several superior functions so that it appears to be more useful on customers’ perception The fundamental for this is a good technological framework to build the whole service Secondly, an attempt to decrease perceived risk on customers has also proven to be efficient based on the result of this study All information of customers, including personal information and details of transactions should be kept up most confidentiality Furthermore, the systems should be reliable so that customers cannot perceive any risk of e-banking Most importantly, marketing effort should be utilized to increase customers’ awareness of those striking features, thus decreasing their fear of risks In brief, the implication of this study is to increase the adoption rate of e-banking, banking institutions need to improve services that affect consumer’s intention to adopt and continue usage This may be especially challenging for bank managers in Vietnam, where e-banking services are still considered new innovations However, with the rapid development of information technology, banks have been beginning to rely heavily on conducting banking transactions electronically Conclusion and further research The modern design of electronic banking systems needs to incorporate capabilities for customer understanding and for proactive selling of new products because electronic business transactions can 374 | Policies and Sustainable Economic Development only be successful if financial exchanges between buyers and sellers can occur in a simple, universally accepted, safe and cheap way Firstly, marketing activities should not only focus on its targeted customers but also the potential customers that are important to them, as well as those they are admired given the role of Subjective Norm on Intention In a collectivist environment like in Vietnam, social influences play an indispensable role to the intention and the actual behavior of any individual Secondly, this work will contribute extremely to the existing literature on the general application of e-banking services in the modern business In addition, this model presented has opened the research landscape to a wide range of opportunities Particularly, e-banking behavior is a complex and multifaceted process the knowledge and understanding of which has developed incrementally over time The final decision of an individual to adopt or to reject ebanking may be also influenced by cognitive, psychological aspects Hence, the further research should be focused on customer’s emotional and contextual processes Finally, it is also concentrated on Trust, especially two key items, including Perceived Security, Perceived Privacy, contributed to Trust of users towards e-banking Appendix Measurement scales and their source Perceived Ease of Use Perceived Usefulness Attitude toward ebanking Usage Intention Policies and Sustainable Economic Development | 375 Subjective Norm Perceived Control Perceived Risk Actual Usage References Behavioral Ab Hamid, tools International Journal of Communications, 2(3), 195-204 N R (2008) Consumers Abroud, A., Choong, Y V., & Muthaiyah, S (2010) Preparation of measurement tools of the effective factors for the acceptance of online stock trading European Journal of Economics, Finance and Administrative Sciences, 4(19), 34-41 Agarwal, R., & Prasad, J (1997) The role of innovation characteristics and perceived voluntariness in the acceptance of information technologies 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banking Journal of Services Marketing, 14(3), 244-271 378 | Policies and Sustainable Economic Development Lee, M C (2009) Factors influencing the adoption of internet banking: