The term EFT refers to the application of computer and telecommunication technology in making or processing payments. (Stan Sienkiewicz, April 2002). While various forms of payment - including cash, check, and credit and debit cards- are accepted in brick-and-mortar locations, credit cards are currently the payment vehicle of choice for transactions conducted on the Internet. EPOS, which is a form of EFT, is a system which allows customers to pay retailers for the goods and/or services purchased by making a direct transfer of funds from the consumers' account with a bank to the retailer's account which might be necessarily with the same bank (Alhassan G. Abdul-Muhmin, Ibrahim A. Alzamel, (2001). It is further described as a system which is taking the place of paper symbols of value such as cheques, withdrawal slips and other payment vouchers with 'invisible' symbols capable of being processed by computers (Paul White, 2007). One use of EFT is at point of sales known as EFTPoS. EFTPoS is an alternative of the conventional retail payment method through debit and credit cards or online payment other than cash (Simon S.M. Ho, Victor T.F. Ng, 1994). From the research of Simon S.M. Ho, Victor T.F. Ng, (1994) on 'Customers' Risk Perceptions of Electronic Payment Systems', it was found that EFTPoS has low usage rate as it is perceived as risky by consumers compared to the traditional payment methods.
With the introduction of EFTPoS as a new payment method by banks, there is reduction in the transaction paperwork of banks (Simon S.M. Ho and Victor T.F. Ng, 1994). Moreover, from the research carried out by Marti and Zeilinger (1982), the transaction time for EFTPoS which usually takes less than 30 seconds is faster than that for cheques and credit cards. Thus, this helps in the reduction if not the elimination of fraud and delinquent accounts because of bad cheques and credit cards. Moreover, customers can have direct access to their bank accounts at retailers' counters and therefore have no need to carry large amounts of cash (Simon S.M. Ho and Victor T.F. Ng, 1994).
Mobile Banking:
Mobile banking came into use in the early 2000 allowing customers to transact with the bank using Short Messaging Service (SMS) or mobile internet (Sudeep, 2007). Banking transactions take place by sending instructions through SMS to a predefined number given by the bank (Sudeep, 2007). Mobile banking is further defined by Tiwari and Buse (2007) as the provision of banking transactions such as managing accounts and access customized information through mobile devices.
Theories on the unwillingness to adopt innovative banking services:
This study is based on Technology Acceptance Model (TAM) (Davis, 1989), Theory of Reasoned Action (TRA) (Fishbein and Ajzen (1975), Theory of Planned Behavior (TPB) (Ajzen, 1988, 1991) and the Expectations Disconfirmation Theory (EDT) (Olivier, 1980). These theories help us to understand the perceptions of customers when faced with innovative banking services that is the theories give us an insight of why customers behave in a particular manner which further help us in understanding why certain innovations are not welcomed by certain customers.
Figure 1
TAM has been concetualised by Legris, Ingham, & Collerette, 2003 as a theoretical model which is useful in explaining and predicting user behavior of information technology. In fact, TAM is an extension of Theory of Reasoned Action (TRA) (Ajzen and Fishbein, 1980).
Technology Acceptance Model (TAM)
Innovation took place in the banking sector mainly to improve the life of the citizens but many are unwillingness to adopt these new innovative services. This unwillingness is explained by the Technology Acceptance Model (Davis 1989, 1993) which is an adaptation of reasoned action theory (Ajzen and Fishbein, 1980) to the field of information systems. It further states that when faced with a new technology, users' decisions of how and when they will make use of it are affected by a number of factors mainly: external variables such as influence belief, attitude, and intention to use and Perceived Usefulness (PU) and Perceived Ease-Of- Use (PEOU) (Davis et al., 1989). PEOU refers to the amount of effort involved in using the technology (Dabholker, 1996) while PU refers to the extent to which the user believes the new technology would enhance job performance (Davis 1989, 1993; Davis, Bagozzi & Warshaw 1989). The TAM which shows causal relationships between system design features, perceived usefulness, perceived ease of use, attitude toward using, and actual usage behavior is represented in Figure 1:
Theory of Reasoned Action
TRA was developed by Fishbein and Ajzen (1975) to draw links between beliefs, attitudes, norms, intention and behaviors of individuals. The TRA model illustrates that the behavioral intention of an individual depends on the person's attitude about the behavior and subjective norms (BI = A + SN) where BI is behavioral intention, A is attitude and SN is subjective norm as shown below in Figure 2:
Figure 2
In fact, the TAM is able to account for only 40 to 50 percent of user acceptance but with the evolution of TAM to TAM2, the latter can account up to 60 percent of user adoption (Venkatesh & Davis, 2000). TAM2 is an updated version of TAM to explain perceived usefulness and usage intentions including social influence (subjective norm, voluntariness, and image), cognitive instrumental processes (job relevance, output quality, and result demonstrability) and experience (Park, S. Y. (2009)). The enhanced TAM that is TAM2 is shown in Figure3:
Figure 3
Hence, TAM is said to give an overview of the factors that influence mostly technology acceptance by customers.
Theory of Planned Behavior
Theory of Planned behavior (TPB) (Ajzen, 1991) is an improvement of the Theory of Reasoned Action as shown in Figure 4. TPB has perceived behavioral control (PBC) as an additional component which is not present in TRA. PBC allows for the prediction of behaviors that were not complete under volitional control (Armitage and Conner, 2001). In fact, TPB provides the links between attitudes and behavior (Ajzen, 1988, 1991). The additional component of PBC should (1) facilitate the implementation of behavioural intentions into action, and (2) predict behavior directly (Ajzen, 1991). TPB is more reliable than TRA in predicting unethical behavior (Chang (1998)). In other words, TRA works best when it is applied to behaviors that are under the control of the individual while TPB works best when the behavior is not perceived to be under the control of the individual.
Figure 4
Expectations disconfirmation theory (EDT)
Another theory which is linked with the acceptance of technology is the expectations disconfirmation theory (EDT) (Olivier, 1980). This theory is mostly applied to predict the satisfaction among first time visitors. Expectation-Disconfirmation theory (EDT) deals mainly with the pre-usage expectations about a product or service and the post-usage perceptions of the product or service (Bhattacherjee and Premkumar, 2004). EDT has as aim to provide a better understanding on consumer satisfaction, complaining behaviors, and repurchase intentions (PicazoVela, 2009; Hsu et al, 2006; Bhattacherjee and Premkumar, 2004; Patterson et al, 1997). This theory is often used to explain IT adoption and IT usage (Venkatesh and Goyal, 2010; Bhattacherjee et al, 2008; Bhattacherjee and Premkumar, 2004; Susarla et al, 2003). The EDT, which posits that expectations, coupled with perceived performance, lead to post-purchase satisfaction, states that if there is positive disconfirmation that is a product outperforms expectations, then post-purchase satisfaction will result. However, if negative disconfirmation arises as the product falls short of expectations, then this leads to dissatisfaction of consumers (Oliver, 1980; Spreng et al. 1996). EDT explains why some consumers are unwilling to use the innovative banking services and instead prefer to use the conventional banking system that is going personally to a bank to make their transactions.
2.2 Empirical Review
Various empirical studies have been conducted to determine customer perception about the innovative services provided by banks nowadays.
Findings of R. A. Gbadeyan (2011)
From a survey carried out by R. A. Gbadeyan in 2011 on "customers' preference for e - banking services: a case study of selected banks in Sierra Leone", it was found that from out of the 360 people surveyed, only 75% of the were making use of the innovative service: e-banking that are offered by the banks and 25% do not. It was also found that 15% of them prefer the brick-and-mortar that is the conventional banking system while 9% of them were unaware of the innovative service mainly e-banking being provided by banks. Moreover, the survey indicated that the majority (85%) prefer e-banking rather than queuing up at banks to make transactions. ATMs are ranked first with 60% of the surveyed population using them, then money transfer with 30% and other internet banking facilities with 10%. Out of the respondents, 27% perceive the innovative services of bank as a facility to bank anytime and anywhere; 23% perceive them as easy to use while 19% perceive it as saving time. Moreover, 17% view the innovative banking system as a convenient way of operating banking transactions; 8% find it as a way of escaping the queues while 6% find it a very flexible virtual banking system. Overall, it can be stated that a majority of 82% is comfortable with the innovative banking services and the 18% which are not comfortable stated that they security concerned, lack of knowledge, unreliability. Hence, the minority (18%) still has preference for the face-to- face banking system. It was further discovered the majority perceives the new services as they provide speedy transfer, efficient transactions, regular check of transaction and statement details, easy access, lower transactions costs hence save cost on transactions and fund transfer to third party facility. However, the minority of 18& perceives the new services as risky as they are concerned about security and fear cyber fraud, cyber theft and hacking. From this survey, it can be concluded that people in Sierra Leone, people are increasingly making use of internet banking which is one of the innovative services offered by banks particularly for bill payments, online deposits and account opening and ticket booking to fund transfer.
Frederick Abeku Eshun (2009)
From a survey carried out by Frederick Abeku Eshun in 2009 on "The role of Telecommunication on banking services in Ghana", it was found that ATM and Branch Network are the most popular electronic banking delivery channels in Ghana and that ATM were used by customers for their day-to-day transactions. However, Internet Banking, Telephone Banking, PC Banking and EFTPoS, are still emerging strongly and it is expected to be used more frequently by banking customers in the coming years. These conclusions were drawn from the data obtained from 102 out of 200 respondents which represents a 51% response rate. Furthermore, the research concluded that out of 102 respondents, unlike 5 of the respondents, 97 of them use at least one form of electronic delivery system that is they were making use of the innovative services provided by bank. The common services used are the ATM, Internet Banking, Telephone Banking, PC Banking and others. In other words, out of the 102 respondents, 77 of them representing 75.5 % acknowledge that with these innovative services, they can make enquiry about their accounts faster. However, 10 respondents be it 9.8 % of the surveyed population disagreed while 14.7 % that is 15 respondents were neutral about the fact that innovation in the banking sector has made banking enquiries faster. Also, 85 respondents (83.3%) believe that the innovative services reduce the time involved in doing transaction with banks while 11 of the (10.8%) could not make a decision and 6 of them (5.9%) agree that the IT innovation in banking has saved them time in their business transactions. Additionally, 91 respondents (89.2% of the surveyed population) consented that the innovative services have improved the quality of service delivery. However, 5 respondents (4.9%) categorically disagreed to this fact while 6 respondents (5.9%) held neutral view. Again, the majority that is 85 customers representing 83.3% of the surveyed population stated that IT innovation has led to improvement in banking products and services while 7 customers did not agree and 10 respondents were neutral about this view. Even though the majority perceives innovation in banks as a boon, they still stated that human teller that is personal touch is important. Overall, it can be concluded that innovation in the banking sector is welcomed in Ghana and it is perceived as a boon to various customers.
Joseph and Stone (2003)
Another survey regarding customers' perception towards innovative banking services has been conducted by Joseph and Stone (2003). His findings illustrated that in order to have high customer satisfaction, internet banking only, which is on of the innovations of banks, is not sufficient. Instead, customers should be friendly with the new system (Joseph and Stone, 2003, p. 200). This statement was further reinforced by Lang and Colgate (2003) in stating that "customers, who do not have IT gap, find it easier to use internet banking services therefore they have higher-satisfaction levels than the ones who do not have IT skills." Consequently, those who are not IT literate might be unwilling to utilize the innovative banking services.
Charles Blankson, Audhesh K. Paswan, Kwabena G. Boakye (2012)
Moreover, the research work done by Charles Blankson, Audhesh K. Paswan, Kwabena G. Boakye, (2012) on College Students' Consumption of Credit Cards, it was learnt that the majority representing 66% of the respondents perceive credit cards as a measure of enhancing financial security of customers. It further relates that credit cards are widely used mostly because consumers are in need for credit and the cards provide individuals with the power to make purchases.
Joaquín Aldás-Manzano, Carlos Lassala-Navarré, Carla Ruiz-Mafé, Silvia Sanz-Blas, (2009)
A research carried out by Joaquín Aldás-Manzano, Carlos Lassala-Navarré, Carla Ruiz-Mafé, Silvia Sanz-Blas, (2009) with respect to "The role of consumer innovativeness and perceived risk in online banking usage" gives us an insight of how online banking, which is one of the innovative products of banks, is perceived by Spanish Customers. In fact, it can be conceded that online banking is a success in Spain with 5.04 million internet users in 2006 that access banking websites (Fundacio´n Orange, 2007). Apart from online banking, credit cards which are also innovative banking products have also emerged successfully with 4.8 million operations in 2005 and 1200 million euros in 2006. Thus, representing a 74% increase over the precedent year (CMT, 2006). These results were obtained from online survey carried out from 2025 Spanish internet banking users. However, only 759 out of 2025 people responded to the questionnaires set out. The chosen population was those who 16 years old and above using internet banking facilities in the research year (2006). From the 759, the responses of only 511 (67.3%) were investigated in July 2007. The respondents represent 61.6% of men and 38.4% of women representing a further of 35.0% of people age between 25 and 34 and 30.9% represents those aged between 35 and 45. Moreover, it was also deduced that the majority (62.4) were University educated individuals. The most frequently financial transactions performed through online banking services were checking account balance and transaction history, transferring funds between accounts and paying bills. However, the research conducted also demonstrated that the use of internet banking was hindered with perceived risk that is users lack trust in the web payment system thus causing obstacle in the adoption of e-banking. Another key hindrance to the adoption and use of e-banking stated by Yousafzai et al. (2003) is the lack of awareness of internet banking. It was also discovered that privacy risk (Bestavros, 2000) makes banking customers refrain from using e-banking as they believe that by sharing personal financial information, their financial life might become an open book. Thus, this demonstrates lack of trust in the new e-banking system.
Katariina Mäenpää (2010)
From a survey carried out by Katariina Mäenpää on User Perceptions of Internet Banking in 2010, it was found that out of 1031 respondents only 300 were active internet users. These respondents were aged between 15 and 74 years old. The survey further indicated that out of the 300 respondents, 77 declared that they were "low-familiar users" that is they make use of internet banking most infrequently and some of them have recently started to make use of the new internet banking system. 90 respondents were "highly familiar users" while the majority that is 133 respondents was "moderately familiar users". Overall, it was found that new technology was unwilling
7) Research of Sevgi Ã-zkan, Gayani Bindusara, Ray Hackney on "Facilitating the adoption of e-payment systems: theoretical constructs and empirical analysis"
The survey carried out by Sevgi Ã-zkan, Gayani Bindusara, Ray Hackney on "Facilitating the adoption of e-payment systems: theoretical constructs and empirical analysis" in 2010 depicts that respondents perceive e-payment system as a means of facilitating online transactions. Hence, the e-payment system is widely adopted and accepted as an e-commerce activity. Also, even though as other research concluded that respondents usually find that it risky to provide information online, this research carried out by Sevgi Ã-zkan, Gayani Bindusara, Ray Hackney shows that the use e-payment such as credit cards is mostly used for online shopping or banking even though it is perceived as risky. However, from the statement of the 57.8% of the respondents, it is clear that a positive relation between security and the intention to use the internet as a medium for online payments as the respondents said that if they face a breach of security they will stop using the e-payment system. Thus, it is vital for banks and other institutions to provide proper security in online services so that customers do not lose their trust in the system. It was also acknowledged that the respondents found the e-payment system as saving time and money. Moreover, perceived ease of use depicted a direct relationship with intention to adopt e-payments.
Alhassan G. Abdul-Muhmin, Ibrahim A. Alzamel used a modified convenience sampling procedure to collect data for their survey on Retailers' experiences with and attitudes toward the Saudi Arabian EFTPoS system. 250 questionnaires were ste out but only 184 people responded to the questionnaire representing 73.6% response rate. The respondents are as follows:
Type Of Business
Count
Percent
Supermarket
7
4.1%
Jewelry Shop
24
14.1%
Clothing
85
49.7%
Others
64
32.1%
It was also found that the percent of daily sales occurring in this retail shops was as follows:
Percent of Daily sales through EFTPoS
Count
Percent
Less than 5 percent
35
21.5%
5-10 percent
30
18.4%
10.1-20 percent
31
19.0%
20.1-30 percent
31
19.0%
30.1-40 percent
20
12.3%
>40 percent
16
9.9%
Thus, from the survey, it can be concluded that the Saudi retailers which have accepted one of the innovative banking products, EFTPoS system, find it a boon as they benefit from:
Increased convenience for customers
Overall improvements at checkout counter
Creating a modern image for the store
Improved customer retention
Improved overall customer relations
Increased sales
Encouraging customers to spend more
Reduction in cash theft
Provision of useful information on customers
Reduction in work done by counter clerks
Reduction in need to supervise counter clerks
It was also discovered that Saudi retailers have positive attitude towards the EFTPoS system that is in place in the country. From the findings, it is clear that not adopting the new EFTPoS system will be at the peril of the Saudi retailers themselves. They will lose customers due to competition and as a result they will lose vital revenues. Thus, it can be concluded that banking innovation such as the use of electronic fund transfer at point of sale is warmly welcomed in Saudi Arabia.
In 2005, Sylvie Laforet, Xiaoyan Li did a research on "Consumers' attitudes towards online and mobile banking in china" and it was found that the level of awareness of innovative banking services like online and mobile banking was low in China. This was determined from the results obtained from 300 respondents from six major cities of China. The survey was concerned with users and non-users of internet/mobile banking and it dealt with the following issues:
. Consumers' attitudes and reactions to new technology;
. Consumers' attitudes to the traditional retail banking distribution channel;
. Consumers' perceptions of online and mobile bank product attributes;
. Consumers' expectations and major concerns of online and mobile banking;
. Psychological factors; and
. Demographic factors
From the 300 respondents, 53% was male while 47% was female and the respondents were all adults aged between 25 and above. It was also found that one third of the surveyed population was online bank users and aged between 25 and 34 years old. These online bank users were mostly salaried employees and senior managers. The majority not using online banking was mostly women aged 45 and 54 years and these women were small business owners and retired women. However, only 14% of the interviewed population was mobile banking users. The mobile banking users comprised salaried employees, senior managers and a smaller proportion of small business owners, with an age group between 25-34 and 35-44. This was also evident that small business owners prefer the use of mobile banking rather than online banking. The factors that were seen as a hindrance to the adoption of online and mobile banking in China were education, awareness, possession of a credit or debit card, attitudes towards online and mobile banking, past experience with computer, new technology and personal banking.
Lia Patrício, Raymond P. Fisk, João Falcão e Cunha researched on "Improving satisfaction with bank service offerings: measuring the contribution of each delivery channel" in 2003. Their research was based on four focus-group and 14 in-depth interviews in 3 Portuguese cities. The research was carried with 36 participants ranged from 21 to 77 years old. The research has as aim to better understand customers' evaluations and attitudes towards internet banking and telephone banking which form part of innovative services provided by almost all banks nowadays. The research ascertained users of internet banking were mostly younger male with higher level of education and higher professional status. The transactions performed through internet banking were mostly information gathering, transactions of current accounts, credit cards, stocks, and mutual funds' investments. However, the research also showed that internet banking users represent only a small percentage banking customers in Portugal. The research further amplified the findings by stating that all the surveyed population were users of Automatic Teller Machines while five of them used telephone banking regularly. These people believed that internet banking provide them with facilities like accessibility, convenience, time saving, and ease of use. However, those who are non-users of technology stipulated that they are not comfortable with technology thus avoid the use of internet banking. Others refrain from using internet banking in fear of breach of security.
The survey carried out by Michal Polasik on "Empirical Analysis of Internet Banking Adoption in Poland" drew the conclusion that customers which were already using or were familiar with other electronic channels like mobile banking and payment cards were more willing to adopt internet banking. Furthermore, it was found that variables, such as Internet experience and connection mode, perceived security, exposure to marketing campaigns, experience with other banking products, and socio-demographic characteristics had an influence in the decision of banking customer as whether to accept internet banking as a medium to perform banking transaction or not. Also, the presence of infrastructural barriers coupled with lower income per capita and lower saturation with basic banking services were viewed as a hindrance to internet banking adoption. In a nutshell, the adoption rates in Poland seemed to lag behind the EU-Wide averages by about four years and the rates are expected to rise up progressively in the upcoming years.
A further work on customers' adoption of banking channels was done in Hong Kong by Wendy W.N. Wan, Chung-Leung Luk, Cheris W.C. Chow (2005). In this study, ATMs, being the weakest in level of providing information, were found to be mostly used by banking customers followed by internet and branch banking and telephone banking was perceived as being least used. ATMs were perceived to provide high level of convenience to banking customers allowing them to withdraw cash 24 hours a day. Even though internet banking was not highly developed in Hong Kong, banking customers of the latter perceived internet banking as beneficial especially in terms of time and place convenience. Thus, it can be concluded that overall innovative banking services are mostly welcomed by Hong Kong residents.
The research of Siriluck Rotchanakitumnuai, Mark Speece (2003) on "Barriers to Internet banking adoption: a qualitative study among corporate customers in Thailand" revealed that most of the banking customers of Thai do make use of internet banking but they use it as a means of receiving money from their customers. However, they do not use it to transfer their own money to other parties as they are concerned with security. Non-Internet Banking customers perceive internet technology as insecure and highly untrustworthy. Thus, it can be noted that some serious barriers like trust, reliability of transaction and security are hindering the adoption of internet banking Thai customers as along with non-users, users of internet banking also were not doing their whole banking transactions via the internet. In fact, internet banking is still in its early stage in Thailand as Thai people believe that there is not enough legal support for privacy protection in internet banking and also that the country lacks adequate measures to protect bank customers against financial loss via the internet.
