Factors affecting the adoption of Internet Banking in Hong Kong—implications for the banking sector

The rapid development of Internet and Electronic Business has stimulated the banking and financial sectors towards encouraging customers to bank on-line. This paper explores the adoption of Internet Banking by retail customers in Hong Kong. The paper attempts to make sense of Internet Banking in Hong Kong from three angles: (i) the current adoption rate of Internet Banking; (ii) the influences of perceived usefulness, perceived ease of use, perceived risk and personal innovativeness in information technology and (iii) the potential impacts on the strategic activity of banking organisations operating in the Hong Kong market.The research constructs were developed based on the Technology Acceptance Model and incorporated two additional elements of personal innovativeness and perceived risk. Hypotheses were constructed and then tested using t-test and Pearson's correlation. It was found that certain factors did have a positive relationship with the adoption of Internet Banking and as such strategy in the banking services sector can be refined to better meet the demands and profile of the Hong Kong market.