Factors influencing the adoption of internet banking in Ghana

December 8, 2020
This article majorly focuses on the factors that influence customer intention towards the adoption of internet banking in Ghana.

In Ghana, internet usage is increasing, and this trend has positive implications towards universal internet banking and making it a success. However, adopting internet banking and switching to a cashless economy still faces headwinds. This article aims at examining the factors which will influence the adoption of online banking in Ghana.

With the increasing number of internet users reaching three billion and easy internet access; shifting from broadband to mobile broadband has led Africa to be the fastest-growing region in terms of internet usage between 2010 and 2015. The number of subscriptions reached 93 million with 11% penetration and 82% cumulative annual growth rate (CAGR). Based on these figures, countries across the Sub-Saharan Africa region like Kenya, Ghana, Senegal and Nigeria have witnessed and demonstrated material social and economic gains. 

Researchers discovered that the biggest barrier for customers switching from traditional cash based encounters to internet banking is the ease and ubiquity of internet banking channels at their fingertips. Studies are conducted to observe and identify the more important factors that influence consumers' internet banking adoption behaviour.

This post focuses on the factors that influence customer intention towards online banking adoption, internet banking usage, attitude towards adoption, security and privacy. Let's study this in detail.

Factors influencing internet banking 

  • Adoption of internet banking- 

Adoption of internet banking in Ghana- factors influencing- N2Xpress

The ever growing internet world, demands advancement in all areas from smartphone penetration to easily affordable data plans. By honing in on the Technology Acceptance Model (TAM) to test technology adoption we can sense the direction of customer intentions, towards internet banking adoption by localities. Some studies reveal that lack of trust, security and user-friendliness of the internet technology are among some factors which deprive and block users from adopting internet banking. The perceived absence of security is the foremost hindrance factor in internet banking adoption. Other factors which affect adoption are customer earnings, maturity and gender. One more study conducted revealed that acceptance and decline of the use of internet banking depend on helpfulness, the comfort of usage, reliability and social norms. These consumer behaviours are important in the adoption of internet banking. If we talk about Ghanaian customer's prime concern, then we can conclude by saying that it is largely "security and safety measures". Within that you can hone in on PIN security, individual data protection, confidentiality and hacking. Many consumers are reluctant to put trust in something that doesn’t have the track record of cash. The trust between bank and customer depends on loyal interactions and inventive behaviour.

internet banking in Ghana- bank- N2Xpress

  • The perceived usefulness of internet banking:

Two main categorizations of perceived usefulness are; intended and unintended rewards. As per intended rewards, they are tangible and immediate rewards that consumers enjoy using. It includes lower transaction fees, high deposit rates, prize and promotion opportunities, etc. The unintended rewards are palpable and tough to measure, but generally revolve around security concerns such as hacking and cloning of ATM cards.

  • Technology Acceptance Model (TAM):
 internet banking in Ghana- technology acceptance model- N2Xpress

Studies show that the TAM is extensively used across different studies globally to test technological acceptance. Mr. Davis developed the TAM in 1989 to explain how customers accept and decline the use of technology, based on "perceived ease of use" and "perceived usefulness" of technology. 

At perceived ease of use level, a potential consumer of technology believes a technology or a potential system is effortless. And on the contrary, perceived usefulness is a level at which the potential user of technology believes technology will enhance his or her performance. These two variables have a direct impact on internet banking adoption. 

  • Internet banking Trust and Security

t Internet banking in Ghana- trust and security- N2Xpress

Trust is a two-way street; it is of paramount interest for influence on online marketing; acceptance and denial. Online trust can be claimed through proper understanding of all factors and observing customers needs and requirements in trusting internet banking. Trust is developed by combining conventional and online measures and by continuous efforts of the delivery party. A survey done by computer fraud and security reveals 82% of customers were doubtful to reply to emails from banks, within that group 52% went as far as saying that they will reject any sign-up for internet banking emanating from an email channe;. This signifies more and more customers are highly concerned about the security and safety of their accounts and money and especially when using internet banking.

internet banking in Ghana- authentication- security-N2Xpress

  • Ghana government's measures to support internet banking

Government support in connection with consumer intention to use online banking is positively encouraged. It is very essential for trust-building. It is observed that customers' understanding of the benefits of adopting online modes of banking, comes from private sector advertising of services such as online banking, adoption of  online shopping and pay bills. The Ghanaian government can step into this void by encouraging public institutions like government schools to concentrate on teaching basic computer knowledge and internet awareness from an early age. The more people become IT literate, the more they will accept online internet services. And this will increase online banking adoption.

The government of Ghana has enabled a policy to expand and invest in mobile and online banking in the banking sector and formed regulatory policy bodies for this as well. The main aim of this policy is to enable the expansion of dependable and cost-effective world-class standards. Communication setups and facilities are provided by suitable high tech novelties so that it reaches all Ghanaian citizens and improves monetary competitiveness in a knowledge-driven environment. Ghana is leading the way in West Africa in terms of moving it’s IT sector from underwhelming to superior.


The above details give insight into the factors that influence the adoption of internet banking in Ghana and how changing a few variables can affect the increased use of internet banking in Ghana. Various implications have brought a significant rise in the adoption of internet banking in Ghana. The cashless economy and internet banking have proved a boon in the life of many Ghanaians. Transfer of money globally is now made easy and instant by adopting internet banking and cashless payment methods. N2Xpress helps you to transfer money safely and securely and hassle-free. The three main features of our services are instant money transfer, affordability and trust.

Send more than money.