Exploring perceptions of challenges in using personal online banking diffusion in Bangladesh

  • Farhana Parveen

Student thesis: Doctoral Thesis


Technological progress underpins economic growth. In Asia, this has been particularly evident in China, India, Malaysia, and Singapore. An important aspect of technological progress manifests in the financial system. Banking transactions which were largely based on traditional methods about two and half decades ago, have been revolutionised very rapidly in recent times.

The level of technologically based banking systems in China, India, Malaysia, and Singapore is significantly different compared with other Asian countries such as Bangladesh, Myanmar, Nepal, Bhutan, Cambodia, and Laos. This disparity may help to explain the different experiences of these sets of countries in terms of economic development. Recent examples to reinforce this notion are Thailand and Vietnam which are transforming their banking sectors and growing very fast at the same time.

In the case of Bangladesh, we observe that the banking sector has largely remained traditional. In addition, Bangladesh is lagging its neighbouring countries in terms of economic progress. This observation has provided the motivation to study the reasons behind the lack of technology adoption in the banking sector in Bangladesh.

Specifically, this thesis explores the role of change perception, culture, tradition and demography on the acceptance of Personal Online Banking in Bangladesh. Other studies have explored similar aspects for other countries, but Bangladesh has remained relatively ignored. Among the findings of previous analyses, we appreciate that culture, beliefs, faith based hegemonies, level of infrastructural development and political structure seem to explain the lack of technology adoption in the banking system.

This thesis adopts a qualitative approach with data gathered by the means of semi-structured interviews. Data were collected from 33 commercial bank’s customers via face-to face interviewing. Findings indicate that eight key factors prevented customers’ intention towards Personal Online Banking adoption in Bangladesh. These include: (i) Perceived Usefulness; (ii) Perceived Ease of Use; (iii) Security; (iv) Demonstrability; (v) Compatibility, (vi) Result Demonstrability; (vii) Government support (viii) Information about Online Banking. It is important to highlight that Government Support and Demonstrability seem to be particularly relevant for the adoption and acceptance of Personal Online Banking in Bangladesh.
Date of Award4 Mar 2021
Original languageEnglish
Awarding Institution
  • Abertay University
SupervisorMohamed Branine (Supervisor) & Alex Avramenko (Supervisor)

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