Determinants of Online Banking Adoption: Evidence from NMB Bank Plc Customers in Iringa Municipality.

This paper aimed to empirically examine the factors that affect the adoption of online banking in Iringa Region, Tanzania, using the extended technology acceptance model (TAM). Perceived usefulness, perceived ease of use, perceived risk, and perceived trust were factors assessed as determinants for online banking adoption. The study adopted descriptive research design whereby a sample of 300 respondents featured in the survey. The survey was conducted in Iringa Municipality where convenience sampling technique was used in selecting the respondents. Data collection was through questionnaire completion by selected respondents. Data analysis was done by applying descriptive analysis, correlational and multiple regression model techniques. Perceived usefulness and perceived trust were found to be significant positive predictors of the adoption of online banking. While Perceived risk had negative significant effect on online banking adoption, the perceived Ease of Use had an insignificant effect on online banking adoption. The findings imply that for bank customers to increase their adoption of the online banking services, the bank should strive to make the service more useful, include more features that can increase the level of customers’ trust on it while at the same time reduce the underlying risk. Keywords: Internet Banking, Adoption, Technology Acceptance, Perceived Risk