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INTERNET BANKING:
SUGGESTION FOR SOUTH
SUDAN
Anthony Sadalla Khamis GADO
MSc. Finance (I.U)
B.BA (UCU)
Supervisor: Prof. Dr. Ali HEPŞEN
(Oct. 2018)
WELCOME MESSAGE
Motivation
Technology and Innovation Revolution
Internet of Things (IoTs) and İnternet of Service (İoSs)
Continuous consumption of the traditional based banking system despite the
modern system
South Sudanese response to modern technology
Table of Content
Introduction to the topic
Background of the study
South Sudan and the banking
institution framework
Problem statement/Research problem
Objective of the study
Major inherent in Internet Banking
risk
Research hypothesis
Research Methodoly
Data Analysis, result and discussion
Summary of the research
Conclusion
Recommendation
Area of further studies
Introduction to the topic
We are living in a world of Internet of Thinks (IoTs). Internet user’s
percentage in developed and developing countries keep increasing exponentially
every seconds
Technologies have not only significantly impacted the banking sector
globally but every walk of life. Banks and financial institution have improved
their functions as financial intermediaries through adopting various
information technologies (Chang, 2002; Hayness and Thompson, 2002;
Ventakatesh et al, 2003).
Introduction to the topic…
Desire to capture large market shares and be a market leaders results into
extremely fierce competition in the many sector more so financial institution.
The market is for herself and the competitors battling among themselves to
gain market share and retain as well as attracting new customers.
Background of the study
Before the referendum, Sudan by then had financial services known as mobile
banking coupled with its dual banking services (Conventional and Islamic
banking system).
However, after the referendum in 2011, South Sudan opted for Conventional
banking system while Sudan maintained the Islamic system.
After establishmet of several banks in South Sudan like the Kenya Commercial
Banks (KCB), Equity Bank, Standard Chartered Bank, Stanbic bank etc dream
of having internet banking became a reality.
South Sudan and banking institution
framework
On January 9th, 2011, a landlocked country in north-eastern Africa with a
population of 12.34 million and Gross Domestic Product (GDP) per capita
730.58 USD (World Bank report) became the world’s newest nation and
Africa’s 55th country after a successful referendum and succession from
Sudan.
During the 6 years interim period, South Sudan and Sudan were using the
dual banking system with Islamic banking system in Northern Sudan and
conventional banking system in Southern Sudan (CPA between GoS and
SPLA/M, 2005).
South Sudan and banking institution
framework…
Commercial bank in South Sudan framework
Before the independence in 2011, there were five (5) commercial banks; 3
locally incorporated banks, 1 foreign subsidiary, and 1 state-owned bank.
As peace returns to the country, South Sudan has seen many banking
institutions begin to open branches in the country.
The biggest bank institution players are Kenyan Commercial Bank (KCB)
and Equity bank with many branches throughout the states
South Sudan and banking institution
framework…
Despite the foreign investors’ interest in
doing business in the country, they are
faced with many challenges of financial
instabilities such as
(a) Risk and vulnerability in the banking
system,
(b) Banking sector regulations,
(c) Payment system
(d) Arm embargo against Sudan,
(e) High cost of doing business,
(f) Scarcity of foreign exchange,
(g) Labour law,
h) Low level of skills workers
i) Political instability related
problems.
Among others
Research problem
The penetration of the internet and the emerging of internet banking in the 1980’s
have changed the banking sector in Africa. Internet banking is one of the latest
modern banking technology retail banks uses as a medium to channel their
products and services to customers
Information Communication Technology (ICT) is expanding rapidly in Africa and it
aims to add weight to the socio-economic development of the African continent.
Internet banking in Africa has gain momentum due to the availability of internet
services.
Research problem…
In many African countries more so the Republic of South Sudan, the
traditional branch-based banking system remains a widespread method
for banking transaction. Internet banking has not been fully utilized by the
customers and this convenient, easy and modern technology remains
unnoticed by the majority of customers.
According to a recent prediction by researchers, internet banking is gaining
ground and will soon dominate the traditional branch-based banking service
(Cheruiyot, 2010)
Research problem…
In South Sudan, due to the development and introduction of the modern,
convenient internet banking service, bank customers are gradually shifting
from traditional branch-based banking services to internet banking. However,
the research came to light to find out reasons for people resistence to use
internet banking despite banks offering this convenient service.
Objective of the study
Main objective
The main objective of the study was to suggest the adoption of internet banking
for South Sudan.
Specific objectives
To study factors influencing customer’s preference of traditional banking to internet
banking system.
To study customer usage of internet banking in South Sudan
To study the factors limiting the adoption of internet banking growth in South
Sudan
Major inherent risks in Internet
Banking
Operational risk/Transaction risk
This is internet banking risk that arises from fraud and errors. It occurs due to
human inability to control them. To mitigate the fraud, management should ensure
effective policies and control of the security system and segregation of duties,
dual controls system, and reconcilements.
Reputational risk
Every institution wants to have a good brand image to gain customers trust and
confidence. Warren Buffett said “It takes 20 years to build a reputation and five
minutes to ruin it. If you think about that, you’ll do things differently”.
Major inherent risks in Internet
Banking…
Legal/compliance risk
Many companies closed their business operation as a result of a legal battle with
customers keeping other factors constant. Compliance risk is a type of inherent risk
that exposes the financial institution to legal penalties, fines, payment of
damages, voiding of contracts.
Security risk
Since online banking operates via the internet, security risk can’t be ignored. This is
one of the factors hindering the growth of internet banking. Customer’s fears of
engaging in online banking because of the security threat from cyber-attack
Major inherent risks in Internet
Banking…
Strategic risk
This risk arises from the lack of effective and proper business plan,
improper implementation of these plans and lack of resources to support
the strategic plan. Unplanned and poor management of internet banking
and investment strategy decision may increase financial institution strategy
risk.
Literature Review
Internet banking
There is no single definition of internet banking because of lack of
consensus in its definition given by scholars and researchers (Daniel, 1999;
Sathye, 1999).
‘the provision of retail and small value banking products and services
through electronic channels’ (Basel committee on banking supervision in
1998 and 2003)
Literature Review
For 3 decades since internet/online banking first experimented in the 1980’s,
there has been tremendous growth even though it caught up in the late
nineties (1990’s). The first online banking was tested in 1981 in New York
with the participation of banks such as Chase Manhattan, Citibank.
However, it was first launched in the United Kingdom in 1993 by the
Nottingham Building Society (NBS).
In October 1994, online banking service was introduced in the United
States and was developed by a financial institution known as Stanford Federal
Credit Union (SFCU).
Literature Review…
According to Statista.com report 2016, there has been an exponential growth
of online banking in the European countries with Norway leading the chart
and Bulgaria at the bottom. Norway internet penetration stands at 91% in 2016,
Denmark at 88%, Finland 86% and Bulgaria at 4% among other countries.
Despite the online banking, customers have the fear of safety issues.
According to Hedberg and Taylor 2001, security of internet transaction is of
paramount concern to most customers, particularly where financial
information is involved. Security issues became a force to rock with as well as
some customers have no idea about the usage of internet banking
Literature Review…
Banks need to make their customers feel at home with their satisfactory
services to out-smart their competitors. Internet banking brings
comfortability into the banking world as customers can access their bank
information anytime anywhere 24/7/365 (24 hours, 7 weeks and 365 days in a
year) using an intelligent device connected to the internet.
Literature Review
Theory of Reasoned Action/Theory of Planned Behaviour (TRA/TPB)
Developed by Martin Ajzen Icek (1988, 1991), it determines the behavioural
intention of individuals in performing the behaviour.
The theory of Planned Behaviour determines that the use or rejection of
technology is determined by individual intention to perform the
behaviour
İt determines the link and relationship between beliefs, attitudes,
intention, subjective norms and behaviour of an individual
Literature Review…
Technology Acceptance Model (TAM) (Davis, 1989)
This theory predicts the adoptability and acceptability of technology by
individual based on two factors: Perceived Usefulness and Perceived Ease
of Use
In a multi-cultural environment, acceptance of technology is met with
resistance to perform
Literature Review…
Self-Efficacy Theory (Albert Bandura, 1982)
İt focus on belief in one’s ability to succeed or accomplish a given task.
The theories tests individual confidence to accomplish a specific task as long
as there is a belief in doing it.
Once an individual believes that it is possible to accomplish a specific task,
confidence drives him/her to attempt it.
Literature Review…
Social Construction Theory of Technology (SCOT) (Wiebe Bijker and Travor
Pinch, 1984).
This theory argues that technology does not determine human action but human
action shape technology. The theory also suggests that technology cannot be
understood without understanding how it is embedded in the society
According to SCOT concept, acceptance and rejection of technology depend on
social context. The different social group tends to have a different problem
associated with the particular technological artifact
Conceptual Framework
Research Hypothesis
1. H1: Perceived Ease of Use (PEOU) show positive significant to use
İnternet Banking.
The easier the usage of the system, the higher the consumption rate. When the system
is easy to learn, customer’s intention to adopt it is high. Sophisticated devices are hard
to use.
2. H2: Perceived Usefulness shows positive significant on adoption and use of
internet banking.
Perceived Usefulness (PU) affects attitude and manipulate the decision option.
The presumed level of using the products offers to users encourages them to shift
their focus and adopt it.
Research Hypothesis…
3. H3: Attitude (A) show positive significant to the usage of traditional
banking service
Customers attitude influence their choice in performing and adopting a system and
serves as a primary basis for decision evaluation and options.
4. H4: Self-efficacy (SE) shows positive effects on customer intention to use
internet banking.
Self-efficacy shows the confidence in accomplishing a given task. People with a
high sense of self-efficacy will challenge themselves to perform a difficult task as
compared to ease of use. Self-efficacy influences individual goals, actions and
success or a failure
Research Hypothesis…
5. H5: Security and privacy shows positive significant on the usage of internet
banking
Many studies showed that customer’s information is always at risk of being espionage,
vandalized sabotage. Bank customers have a fear that their confidential information
can be retrieved by an unauthorized person, hacked with malice intent
6. H6: Perceived Risk (PR) show positive significant on customer’s preference
of traditional banking to internet banking
Perceived risk is equivalent to the concept of uncertainty. Risk such as malware and
hacking caused malice harm to customer’s confidential information and risk of
system break down
Research Hypothesis…
7. H7: Perceived Trustworthiness has positive significant on the adoption of
internet banking
The trust of a company determines customers behavioural action towards that
company. The reputable company gains trust from the loyal and esteem customers as
they can utilize the products without doubt of any issues interfering with their
confidential information
8. H8: Government support is significant in the adoption of internet banking
The government in many developing countries did not offer a conducive environment
for the latest technological advancement
Methodology and Data Analysis
1. Research design
Based on the nature of the research study, the descriptive research design
was adopted. Descriptive research design aided the study in describing the
relationship between the independent variable and the dependent variable
2. Type of the research
The researcher used casual research (explanatory research ) type which
tends to specify the nature of the relationship between two or more variables
Methodology and Data Analysis…
3. Populations sample size and Unit of analysis
The research study target population sample was N=150 respondents and a total of
N=113 questionnaires were received for data analysis. The research unit of
analysis includes individuals with bank accounts, bank officers and geographical
Unit-Juba town.
4. Scale measurement
The researcher used a five Likert scale agreement (Likert, 1932) to assess the level
of respondent’s agreement or disagreement of asymmetric agree-disagree scale.
Besides, Nominal scale type of measurement was used.
Methodology and Data Analysis…
5. Data collection method (online google doc questionnaire)
Designed online structured google document questionnaires as a suitable
medium to reach the desired sample of internet users
6. Data Analysis
Statistical Package for Social Science known as SPSS version 22 with significant
level of 5% (α=0.05) and confidence interval of 95% for regression analysis.
Methodology and Data Analysis…
7. Test of significant
The research used Cronbach’s alpha to test the Reliability of the study.
According to rule of thumb, Cronbach’s alpha α ≥ 0.9 excellent, 0.9 > α≥
0.80 good, 0.8 > α ≥ 0.7 acceptable, 0.7 > α ≥ 0.6 questionable, 0.6 > α ≥
0.5 poor and 0.5 > α unacceptable.
The Cronbach’s alpha for the reliability of this study ranges from 0.69 to 0.9.
(Refer to table 10, page 68)
Data Analysis, Results and Discussion
Table 4. 1: Gender Table 4. 2: Age distribution
Age
Frequency Percent Valid Percent Cumulative
Percent
Valid 20-29 68 60.2 60.2 60.2
30-39 39 34.5 34.5 94.7
40-49 5 4.4 4.4 99.1
above 50 1 .9 .9 100.0
Total 113 100.0 100.0
Gender
Frequenc
y
Percent Valid
Percent
Cumulative
Percent
Valid Male 86 76.1 76.1 76.1
Female 27 23.9 23.9 100.0
Total 113 100.0 100.0
Data Analysis, Results and Discussion…
Table 4. 3: Distribution of
Education level
Education level
Frequency Percent Valid Percent Cumulative
Percent
Valid Certificate 7 6.2 6.2 6.2
Diploma 17 15.0 15.0 21.2
Degree 69 61.1 61.1 82.3
Master 20 17.7 17.7 100.0
Total 113 100.0 100.0
Table 4. 4: Length of service
Length of Service
Frequency Percent Valid Percent Cumulative
Percent
Valid Below 5 years 100 88.5 94.3 94.3
above 11 years 6 5.3 5.7 100.0
Total 106 93.8 100.0
Missing System 7 6.2
Total 113 100.0
Table 4. 5: Frequency distribution of Bank
Name
Bank name
. Frequency Percent Valid Percent Cumulative Percent
Valid KCB 27 23.9 23.9 23.9
Equity bank 37 32.7 32.7 56.6
Eco bank 28 24.8 24.8 81.4
Carter one bank 1 .9 .9 82.3
Cooperative bank 6 5.3 5.3 87.6
Ivory bank 5 4.4 4.4 92.0
Stanbic bank 9 8.0 8.0 100.0
Total 113 100.0 100.0
Table 4. 6: Frequency
distribution of Internet bank
Usage
I bank online
Frequency Percent Valid Percent Cumulative
Percent
Valid NO 82 72.6 73.2 73.2
YES 30 26.5 26.8 100.0
Total 112 99.1 100.0
Missing System 1 .9
Total 113 100.0
Table 4. 8: Interest in
internet banking
I would like to use internet banking
Frequency Percent Valid Percent Cumulative
Percent
Valid No 1 .9 .9 .9
Yes 97 85.8 88.2 89.1
Maybe 12 10.6 10.9 100.0
Total 110 97.3 100.0
Missing System 3 2.7
Total 113 100.0
A total of 97 respondents said that
they wanted to use the internet banking
services while 12 respondents are not
sure whether they can use this service
or not.
Those who said they wanted to use
internet banking has 85.8% and only
0.9% said No
These statistics show how desperate
people interest to use internet
banking
Table 4. 9: Data Analysis
Factor Loadıng Analysıs
According to Kaiser (1974) values between 0.00-0.49
are unacceptable, 0.50-0.59 is faintly acceptable
(miserable), 0.500-0.700 are mediocre, 0.700-0.800 are
good, 0.800-0.900 are great while values greater than
0.900 are labelled as superb (marvellous).
KMO Summary
Normally, 0<KMO<1
If KMO > 0.50, the sample is adequate
KMO and Bartlett's Test
The purpose of KMO is to measure the
strength of the relationship among variables.
KMO test value is between 0 and 1. A high
value (close to 1) indicates that the factor analysis
is useful for the data while less than 0.50 results
into factor analysis not useful
Bartlett’s Test Sphericity Summary
Significant level at 95%, α=0.05
P-value (sig) 0.000 < 0.05. This indicates sufficient
correlation exists among variables
Hence the factor Analysis is satisfactory
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .839
Bartlett's Test of Sphericity Approx. Chi-Square 1434.023
df 253
Sig. .000
Table 4. 11: TEST OF
HYPOTHESIS
This means that the linear regression
explains independent variables at 57.8% of
the variability of the dependent variable.
In a nutshell, the linear regression
explains 57.8% of the variance in the
data
The statistical analysis shows
that the adjusted R-value of
the model is 0.564 (56.4%)
with R Square value of 0.578
(57.8%).
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .760a .578 .564 .45976
Table 4. 12: Linear
Regression ANOVA
From the SPSS output of the ANOVA table
it shows that the variances are statistically
significant to predict the data F (6.103) =
25.021, p<0.0001.
The ANOVA test shows
whether the overall
regression model is suitable
to fit for the data.
ANOVA
Model Sum of
Squares
df Mean
Square
F Sig.
1 Regression 26.603 6 4.434 25.021 .000b
Residual 15.772 103 .153
Total 42.375 109
Table 4. 13: Linear
Regression Coefficient
Coefficientsa
Model Unstandardized
Coefficients
Standardize
d
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 2.656 .371 1.765 .000
PEOU .167 .066 .203 2.543 .013
PU .236 .042 .359 3.852 .001
Attitude .448 .074 .496 6.072 .000
Self-efficacy .188 .058 .250 3.234 .002
Security and
Privacy
.152 .039 .194 3.859 .000
Perceived risk .112 .163 .015 1.192 .043
Perceived
trustworthy
.080 .062 .116 1.295 .005
Government
support
.026 .059 .036 .443 .059
From the table above, the SPSS linear regression
analysis result shows that PEOU (t=2.543, p<0.013),
PU (t=3.852, p<0.001), Attitude (t=6.072, p<0.0001),
Self-efficacy (t=3.234, p<0.002), Security and privacy
(t=3.859, p<0.0001), Perceived Risk (t=1.192,
p<0.043), Perceived trustworthy (t=1.295, p<0.005),
Since the p<0.0001 is less than the chosen significant
level α=0.05; PEOU, PU, Attitude, Self-efficacy.
Perceived risk, perceived trustworthy are statistically
significant. However, Government Support is almost
significant at (t=.443, p<0.059). This is because the
significant level is greater than the chosen alpha level
(α=0.05).
Interpretation Of The Hypothesis Results
(Findings)
Table 4. 14: Perceived Ease of
Use (PEOU) show positive
significant to use İnternet
Banking
This statement explains the SPSS results which
show significant effects on the dependent
variables. The statistic is significant at (t=2.543,
p<0.013), which means that we can reject the
null hypothesis and accept the alternative
This statistical result has correlated with Davis
(1989) studies on Technology Acceptance Model
(TAM) which predicts the adoptability and
acceptability of technology by the individual.
An application perceived to be easier to
use than another is more likely to be
accepted by users. PEOU has a positive
and negative impact on the usage of
any electronic devices. The easier the
usage of the system, the higher the
consumption rate.
When the system is easy to learn,
customer’s intention to adopt it is
high (Davis 1970).
Katsayı
Model
Standardize Edilmemiş
Katsayılar
Standardize
Edilmiş
Katsayılar t Sig.
B Std. Error Beta
1 (Sabit) 2.656 0.371 1.765 0
PEOU 0.167 0.066 0.203 2.543 0.013
Table 4. 15: Perceived
Usefulness shows positive
significant on adoption and
use of internet banking
From the SPSS statistical result, Perceived
Usefulness is significant (t=3.852, p<0.001). This
result correlated with Davis (1989) which stated
that a system can have a positive and negative
impact on the individual performance.
This explains why due to perceived risk, a trust
issue, security, and privacy, some customers still
using traditional banking as the best banking
service
Davis (1989, 320) defined Perceived
Usefulness as “the degree to which a
person believes that using a particular
system would enhance his/her job
performance. Perceived Usefulness
(PU) affects attitude and manipulate
the decision option.
Katsayı
Model
Standardize Edilmemiş
Katsayılar
Standardize
Edilmiş
Katsayılar t Sig.
B Std. Error Beta
1 (Sabit) 2.656 0.371 1.765 0
PU 0.236 0.042 0.359 3.852 0.001
Table 4. 16: Attitude (A) show
positive significant to the
usage of traditional banking
service
From the statistical table above, attitude is
significant in influencing the dependent
variables (t=6.072, p<0.001), therefore, we can
reject the null hypothesis and accept the
alternative. This means that peoples attitude
is significant in influencing their decision to
change from traditional banking services to
internet banking
Attitude is about the behaviour,
emotion, belief of an individual to
perform a task. Attitude is enduring but
it changes according to the mood and
surrounding environment.
Attitude has 3 models (ABC model of
attitude). These are an Affective
component, Behavioural component
and Cognitive component. All these
components have a positive and
negative impact on our decision-
making process.
Katsayı
Model
Standardize Edilmemiş
Katsayılar
Standardize
Edilmiş
Katsayılar t Sig.
B Std. Error Beta
1 (Sabit) 2.656 0.371 1.765 0
Tutum 0.448 0.074 0.496 6.072 0.001
Table 4. 17: Self-efficacy (SE)
shows positive effects on
customer intention to use
internet banking.
From the SPSS statistics results, we can
conclude that self-efficacy is significant
(t=3.234, p<0.002). That means we reject the
null hypothesis and accept the alternative. This
result concurs with the theory of Self-efficacy
developed by Albert Bandura (1982) where an
individual’s belief in his or her capacity to
execute behaviour necessary to produce specific
performance attainment
Self-efficacy beliefs determine how people
feel, think, motivate themselves and the
way they behave in public or towards
accomplishing a given task
People with a high sense of self-efficacy will
challenge themselves to perform a difficult
task as compared to ease of use
Self-efficacy shows individual confident to
accomplish a difficult assignment
Katsayı
Model
Standardize Edilmemiş
Katsayılar
Standardize
Edilmiş
Katsayılar t Sig.
B Std. Error Beta
1 (Sabit) 2.656 0.371 1.765 0
Öz yeterlilik 0.188 0.058 0.25 3.234 0.002
Table 4. 18: Security and
privacy shows positive
significant on the usage of
internet banking
The results show significant level at (t=3.859,
p<0.001), and because of that we accept the
alternative and reject the null hypothesis
Bank customers have a fear that their
confidential information can be retrieved by an
unauthorized person, hacked with malice intent
Security and privacy issue can be in a form of
unauthorized access, computer fraud, pharming,
malware attack, phishing attack caused by skilled
internet frauders
When it comes to technological
advancement, security and privacy issues
always is a topic to talk about
Besides the risk that comes with using
technology, security and privacy affect our
decision
M.Less (2009, 2) defined perceived security
as “potential loss due to fraud or a hacker
compromising the security of an online
user”
Katsayı
Model
Standardize Edilmemiş
Katsayılar
Standardize
Edilmiş
Katsayılar t Sig.
B Std. Error Beta
1 (Sabit) 2.656 0.371 1.765 0
Güvenlik ve
Gizlilik
0.152 0.039 0.194 3.859 0.001
Table 4. 19: Perceived Risk
(PR) show positive
significant on customers’
preference of traditional
banking to internet banking
The SPSS statistic results show that perceived risk
is significant at (t=1.192, p<0.043), hence we can
reject the null hypothesis and accept the alternative
As seen from the table above, perceived risk has a
positive response to customer’s preference for
traditional banking. They tend to use the
traditional banking not because they cannot
use internet banking but because of the
perceived risk in internet banking
Due to the perceived risk of internet
banking usage, customers find it hard to
trust the website and the bank system in
online service delivery
Perceived risk is equivalent to the
concept of uncertainty
Risk such as malware and hacking caused
malice harm to customer’s confidential
information and risk of system break down
Katsayı
Model
Standardize Edilmemiş
Katsayılar
Standardize
Edilmiş
Katsayılar t Sig.
B Std. Error Beta
1 (Sabit) 2.656 0.371 1.765 0
Algılan risk 0.112 0.163 0.015 1.192 0.043
Table 4. 20: Perceived
Trustworthiness has positive
significant on the adoption of
internet banking
The statistics resulting from SPSS version 22
shows that Perceived Trustworthy is significant at
(t=1.295, p<0.005). The trust of a company
determines customers behavioural action
towards that company. Reputable company
gains trust from the loyal and esteem customers
as they can utilize the products without doubt of
any issues interfering with their confidential
information.
When an individual trust financial institute,
no matter the risk it takes, he/she will be a
loyal customer.
Trust is always an issue that comes when it
concerns banking or any financial institution.
Customers wanted to know how
trustworthy the institution is in
managing and safeguarding their
finances
Trust affects the individual relationship and
who we choose to deal with. With trust
comes confidence.
Katsayı
Model
Standardize Edilmemiş
Katsayılar
Standardize
Edilmiş
Katsayılar t Sig.
B Std. Error Beta
1 (Sabit) 2.656 0.371 1.765 0
Algılanan
güvenilirlik
0.08 0.062 0.116 1.295 0.005
Table 4. 21: Government
support is significant in the
adoption of internet banking From the SPSS statistics above, the result is
almost significant at (t=.443, p<0.059) which
means that we accept the null hypothesis and
reject the alternative
When a government supports the financial
institute, there will be an open innovation and
adopting to the latest technology becomes easy.
The government can support internet banking
adoption by investing in infrastructural
development most especially IT infrastructure that
will encourage investor’s inflow in the sector
The government has a positive or
negative impact on the economy. The
financial institution cannot operate
without abiding by government legal
obligation. A country with a stable
economy encourages investors to invest
more in different sectors such as
agriculture, mining industry, construction
companies, financial institute
Katsayı
Model
Standardize Edilmemiş
Katsayılar
Standardize
Edilmiş
Katsayılar t Sig.
B Std. Error Beta
1 (Sabit) 2.656 0.371 1.765 0
Devlet
desteği
0.026 0.059 0.036 0.443 0.059
SUMMARY
The research study is about internet banking suggestion for South Sudan with
objectives to study factors influencing customer’s preference of traditional banking to
internet banking system, customer usage of internet banking in South Sudan and
factors limiting adoption of internet banking growth in South Sudan.
The research study came to light because of the latest adoptability of the internet
banking in many different countries that facilitate the easy transaction, checking of
bank information and account management among other benefits.
Majority of the population are using traditional branch-based internet banking system
despite the internet advancement in the country. Customers are either unaware of the
latest bank products or they were not informed.
SUMMARY…
The SPSS version 22 statistic results show that these variables are significant.
The results concur with many authors who have done similar research on
internet banking in different countries..
Despite Government Support is almost significant in this research, the
government has a bigger role to play in infrastructural development in the
country to encourage more investment.
CONCLUSION
Based on the linear regression analysis, the study concludes that there is a strong
relationship between Perceived Risk, Perceived trustworthy, Security and privacy,
Perceived ease of use, Perceived usefulness, Attitude, self-efficacy toward internet
banking suggestion and adoption of internet banking in South Sudan. However
government support is almost significant.
Despite Government Support is almost significant in this research, the government
has a bigger role to play in infrastructural development in the country to encourage
more investment. Government strict laws on financial institution also may hinder the
latest banking technologies to ease money transfer and transaction
RECOMMENDATION
I would suggest and recommend internet banking in the Republic of South Sudan.
Besides the benefits, internet banking can be used as a competitive advantage.
Therefore, banks need to carry out an aggressive campaign to encourage customers
to use the online banking system. Since the majority of customers are not aware of the
internet banking, the researcher suggests that during the opening of banking accounts,
customers should be informed about all latest products, their benefits and how
to use them
I recommend that the government should continue to support the financial institution
in the country. The government should focus on infrastructural development to
encourage investors to invest more in the country.
AREA OF FURTHER STUDIES
This research has paved way for many areas of interest in internet banking in
the country. Therefore, there is a need to study the profitability of internet
banking in South Sudan
There is a need to study consumer’s satisfaction and dissatisfaction of the
online banking in South Sudan.
There is a need to study the efficiency of internet banking in South Sudan.
Closing Remarks and Questions

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Thesis presentation

  • 1. INTERNET BANKING: SUGGESTION FOR SOUTH SUDAN Anthony Sadalla Khamis GADO MSc. Finance (I.U) B.BA (UCU) Supervisor: Prof. Dr. Ali HEPŞEN (Oct. 2018)
  • 3. Motivation Technology and Innovation Revolution Internet of Things (IoTs) and İnternet of Service (İoSs) Continuous consumption of the traditional based banking system despite the modern system South Sudanese response to modern technology
  • 4. Table of Content Introduction to the topic Background of the study South Sudan and the banking institution framework Problem statement/Research problem Objective of the study Major inherent in Internet Banking risk Research hypothesis Research Methodoly Data Analysis, result and discussion Summary of the research Conclusion Recommendation Area of further studies
  • 5. Introduction to the topic We are living in a world of Internet of Thinks (IoTs). Internet user’s percentage in developed and developing countries keep increasing exponentially every seconds Technologies have not only significantly impacted the banking sector globally but every walk of life. Banks and financial institution have improved their functions as financial intermediaries through adopting various information technologies (Chang, 2002; Hayness and Thompson, 2002; Ventakatesh et al, 2003).
  • 6. Introduction to the topic… Desire to capture large market shares and be a market leaders results into extremely fierce competition in the many sector more so financial institution. The market is for herself and the competitors battling among themselves to gain market share and retain as well as attracting new customers.
  • 7. Background of the study Before the referendum, Sudan by then had financial services known as mobile banking coupled with its dual banking services (Conventional and Islamic banking system). However, after the referendum in 2011, South Sudan opted for Conventional banking system while Sudan maintained the Islamic system. After establishmet of several banks in South Sudan like the Kenya Commercial Banks (KCB), Equity Bank, Standard Chartered Bank, Stanbic bank etc dream of having internet banking became a reality.
  • 8. South Sudan and banking institution framework On January 9th, 2011, a landlocked country in north-eastern Africa with a population of 12.34 million and Gross Domestic Product (GDP) per capita 730.58 USD (World Bank report) became the world’s newest nation and Africa’s 55th country after a successful referendum and succession from Sudan. During the 6 years interim period, South Sudan and Sudan were using the dual banking system with Islamic banking system in Northern Sudan and conventional banking system in Southern Sudan (CPA between GoS and SPLA/M, 2005).
  • 9. South Sudan and banking institution framework… Commercial bank in South Sudan framework Before the independence in 2011, there were five (5) commercial banks; 3 locally incorporated banks, 1 foreign subsidiary, and 1 state-owned bank. As peace returns to the country, South Sudan has seen many banking institutions begin to open branches in the country. The biggest bank institution players are Kenyan Commercial Bank (KCB) and Equity bank with many branches throughout the states
  • 10. South Sudan and banking institution framework… Despite the foreign investors’ interest in doing business in the country, they are faced with many challenges of financial instabilities such as (a) Risk and vulnerability in the banking system, (b) Banking sector regulations, (c) Payment system (d) Arm embargo against Sudan, (e) High cost of doing business, (f) Scarcity of foreign exchange, (g) Labour law, h) Low level of skills workers i) Political instability related problems. Among others
  • 11. Research problem The penetration of the internet and the emerging of internet banking in the 1980’s have changed the banking sector in Africa. Internet banking is one of the latest modern banking technology retail banks uses as a medium to channel their products and services to customers Information Communication Technology (ICT) is expanding rapidly in Africa and it aims to add weight to the socio-economic development of the African continent. Internet banking in Africa has gain momentum due to the availability of internet services.
  • 12. Research problem… In many African countries more so the Republic of South Sudan, the traditional branch-based banking system remains a widespread method for banking transaction. Internet banking has not been fully utilized by the customers and this convenient, easy and modern technology remains unnoticed by the majority of customers. According to a recent prediction by researchers, internet banking is gaining ground and will soon dominate the traditional branch-based banking service (Cheruiyot, 2010)
  • 13. Research problem… In South Sudan, due to the development and introduction of the modern, convenient internet banking service, bank customers are gradually shifting from traditional branch-based banking services to internet banking. However, the research came to light to find out reasons for people resistence to use internet banking despite banks offering this convenient service.
  • 14. Objective of the study Main objective The main objective of the study was to suggest the adoption of internet banking for South Sudan. Specific objectives To study factors influencing customer’s preference of traditional banking to internet banking system. To study customer usage of internet banking in South Sudan To study the factors limiting the adoption of internet banking growth in South Sudan
  • 15. Major inherent risks in Internet Banking Operational risk/Transaction risk This is internet banking risk that arises from fraud and errors. It occurs due to human inability to control them. To mitigate the fraud, management should ensure effective policies and control of the security system and segregation of duties, dual controls system, and reconcilements. Reputational risk Every institution wants to have a good brand image to gain customers trust and confidence. Warren Buffett said “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently”.
  • 16. Major inherent risks in Internet Banking… Legal/compliance risk Many companies closed their business operation as a result of a legal battle with customers keeping other factors constant. Compliance risk is a type of inherent risk that exposes the financial institution to legal penalties, fines, payment of damages, voiding of contracts. Security risk Since online banking operates via the internet, security risk can’t be ignored. This is one of the factors hindering the growth of internet banking. Customer’s fears of engaging in online banking because of the security threat from cyber-attack
  • 17. Major inherent risks in Internet Banking… Strategic risk This risk arises from the lack of effective and proper business plan, improper implementation of these plans and lack of resources to support the strategic plan. Unplanned and poor management of internet banking and investment strategy decision may increase financial institution strategy risk.
  • 18. Literature Review Internet banking There is no single definition of internet banking because of lack of consensus in its definition given by scholars and researchers (Daniel, 1999; Sathye, 1999). ‘the provision of retail and small value banking products and services through electronic channels’ (Basel committee on banking supervision in 1998 and 2003)
  • 19. Literature Review For 3 decades since internet/online banking first experimented in the 1980’s, there has been tremendous growth even though it caught up in the late nineties (1990’s). The first online banking was tested in 1981 in New York with the participation of banks such as Chase Manhattan, Citibank. However, it was first launched in the United Kingdom in 1993 by the Nottingham Building Society (NBS). In October 1994, online banking service was introduced in the United States and was developed by a financial institution known as Stanford Federal Credit Union (SFCU).
  • 20. Literature Review… According to Statista.com report 2016, there has been an exponential growth of online banking in the European countries with Norway leading the chart and Bulgaria at the bottom. Norway internet penetration stands at 91% in 2016, Denmark at 88%, Finland 86% and Bulgaria at 4% among other countries. Despite the online banking, customers have the fear of safety issues. According to Hedberg and Taylor 2001, security of internet transaction is of paramount concern to most customers, particularly where financial information is involved. Security issues became a force to rock with as well as some customers have no idea about the usage of internet banking
  • 21. Literature Review… Banks need to make their customers feel at home with their satisfactory services to out-smart their competitors. Internet banking brings comfortability into the banking world as customers can access their bank information anytime anywhere 24/7/365 (24 hours, 7 weeks and 365 days in a year) using an intelligent device connected to the internet.
  • 22. Literature Review Theory of Reasoned Action/Theory of Planned Behaviour (TRA/TPB) Developed by Martin Ajzen Icek (1988, 1991), it determines the behavioural intention of individuals in performing the behaviour. The theory of Planned Behaviour determines that the use or rejection of technology is determined by individual intention to perform the behaviour İt determines the link and relationship between beliefs, attitudes, intention, subjective norms and behaviour of an individual
  • 23. Literature Review… Technology Acceptance Model (TAM) (Davis, 1989) This theory predicts the adoptability and acceptability of technology by individual based on two factors: Perceived Usefulness and Perceived Ease of Use In a multi-cultural environment, acceptance of technology is met with resistance to perform
  • 24. Literature Review… Self-Efficacy Theory (Albert Bandura, 1982) İt focus on belief in one’s ability to succeed or accomplish a given task. The theories tests individual confidence to accomplish a specific task as long as there is a belief in doing it. Once an individual believes that it is possible to accomplish a specific task, confidence drives him/her to attempt it.
  • 25. Literature Review… Social Construction Theory of Technology (SCOT) (Wiebe Bijker and Travor Pinch, 1984). This theory argues that technology does not determine human action but human action shape technology. The theory also suggests that technology cannot be understood without understanding how it is embedded in the society According to SCOT concept, acceptance and rejection of technology depend on social context. The different social group tends to have a different problem associated with the particular technological artifact
  • 27. Research Hypothesis 1. H1: Perceived Ease of Use (PEOU) show positive significant to use İnternet Banking. The easier the usage of the system, the higher the consumption rate. When the system is easy to learn, customer’s intention to adopt it is high. Sophisticated devices are hard to use. 2. H2: Perceived Usefulness shows positive significant on adoption and use of internet banking. Perceived Usefulness (PU) affects attitude and manipulate the decision option. The presumed level of using the products offers to users encourages them to shift their focus and adopt it.
  • 28. Research Hypothesis… 3. H3: Attitude (A) show positive significant to the usage of traditional banking service Customers attitude influence their choice in performing and adopting a system and serves as a primary basis for decision evaluation and options. 4. H4: Self-efficacy (SE) shows positive effects on customer intention to use internet banking. Self-efficacy shows the confidence in accomplishing a given task. People with a high sense of self-efficacy will challenge themselves to perform a difficult task as compared to ease of use. Self-efficacy influences individual goals, actions and success or a failure
  • 29. Research Hypothesis… 5. H5: Security and privacy shows positive significant on the usage of internet banking Many studies showed that customer’s information is always at risk of being espionage, vandalized sabotage. Bank customers have a fear that their confidential information can be retrieved by an unauthorized person, hacked with malice intent 6. H6: Perceived Risk (PR) show positive significant on customer’s preference of traditional banking to internet banking Perceived risk is equivalent to the concept of uncertainty. Risk such as malware and hacking caused malice harm to customer’s confidential information and risk of system break down
  • 30. Research Hypothesis… 7. H7: Perceived Trustworthiness has positive significant on the adoption of internet banking The trust of a company determines customers behavioural action towards that company. The reputable company gains trust from the loyal and esteem customers as they can utilize the products without doubt of any issues interfering with their confidential information 8. H8: Government support is significant in the adoption of internet banking The government in many developing countries did not offer a conducive environment for the latest technological advancement
  • 31. Methodology and Data Analysis 1. Research design Based on the nature of the research study, the descriptive research design was adopted. Descriptive research design aided the study in describing the relationship between the independent variable and the dependent variable 2. Type of the research The researcher used casual research (explanatory research ) type which tends to specify the nature of the relationship between two or more variables
  • 32. Methodology and Data Analysis… 3. Populations sample size and Unit of analysis The research study target population sample was N=150 respondents and a total of N=113 questionnaires were received for data analysis. The research unit of analysis includes individuals with bank accounts, bank officers and geographical Unit-Juba town. 4. Scale measurement The researcher used a five Likert scale agreement (Likert, 1932) to assess the level of respondent’s agreement or disagreement of asymmetric agree-disagree scale. Besides, Nominal scale type of measurement was used.
  • 33. Methodology and Data Analysis… 5. Data collection method (online google doc questionnaire) Designed online structured google document questionnaires as a suitable medium to reach the desired sample of internet users 6. Data Analysis Statistical Package for Social Science known as SPSS version 22 with significant level of 5% (α=0.05) and confidence interval of 95% for regression analysis.
  • 34. Methodology and Data Analysis… 7. Test of significant The research used Cronbach’s alpha to test the Reliability of the study. According to rule of thumb, Cronbach’s alpha α ≥ 0.9 excellent, 0.9 > α≥ 0.80 good, 0.8 > α ≥ 0.7 acceptable, 0.7 > α ≥ 0.6 questionable, 0.6 > α ≥ 0.5 poor and 0.5 > α unacceptable. The Cronbach’s alpha for the reliability of this study ranges from 0.69 to 0.9. (Refer to table 10, page 68)
  • 35. Data Analysis, Results and Discussion Table 4. 1: Gender Table 4. 2: Age distribution Age Frequency Percent Valid Percent Cumulative Percent Valid 20-29 68 60.2 60.2 60.2 30-39 39 34.5 34.5 94.7 40-49 5 4.4 4.4 99.1 above 50 1 .9 .9 100.0 Total 113 100.0 100.0 Gender Frequenc y Percent Valid Percent Cumulative Percent Valid Male 86 76.1 76.1 76.1 Female 27 23.9 23.9 100.0 Total 113 100.0 100.0
  • 36. Data Analysis, Results and Discussion… Table 4. 3: Distribution of Education level Education level Frequency Percent Valid Percent Cumulative Percent Valid Certificate 7 6.2 6.2 6.2 Diploma 17 15.0 15.0 21.2 Degree 69 61.1 61.1 82.3 Master 20 17.7 17.7 100.0 Total 113 100.0 100.0 Table 4. 4: Length of service Length of Service Frequency Percent Valid Percent Cumulative Percent Valid Below 5 years 100 88.5 94.3 94.3 above 11 years 6 5.3 5.7 100.0 Total 106 93.8 100.0 Missing System 7 6.2 Total 113 100.0
  • 37. Table 4. 5: Frequency distribution of Bank Name Bank name . Frequency Percent Valid Percent Cumulative Percent Valid KCB 27 23.9 23.9 23.9 Equity bank 37 32.7 32.7 56.6 Eco bank 28 24.8 24.8 81.4 Carter one bank 1 .9 .9 82.3 Cooperative bank 6 5.3 5.3 87.6 Ivory bank 5 4.4 4.4 92.0 Stanbic bank 9 8.0 8.0 100.0 Total 113 100.0 100.0
  • 38. Table 4. 6: Frequency distribution of Internet bank Usage I bank online Frequency Percent Valid Percent Cumulative Percent Valid NO 82 72.6 73.2 73.2 YES 30 26.5 26.8 100.0 Total 112 99.1 100.0 Missing System 1 .9 Total 113 100.0
  • 39. Table 4. 8: Interest in internet banking I would like to use internet banking Frequency Percent Valid Percent Cumulative Percent Valid No 1 .9 .9 .9 Yes 97 85.8 88.2 89.1 Maybe 12 10.6 10.9 100.0 Total 110 97.3 100.0 Missing System 3 2.7 Total 113 100.0 A total of 97 respondents said that they wanted to use the internet banking services while 12 respondents are not sure whether they can use this service or not. Those who said they wanted to use internet banking has 85.8% and only 0.9% said No These statistics show how desperate people interest to use internet banking
  • 40. Table 4. 9: Data Analysis Factor Loadıng Analysıs According to Kaiser (1974) values between 0.00-0.49 are unacceptable, 0.50-0.59 is faintly acceptable (miserable), 0.500-0.700 are mediocre, 0.700-0.800 are good, 0.800-0.900 are great while values greater than 0.900 are labelled as superb (marvellous). KMO Summary Normally, 0<KMO<1 If KMO > 0.50, the sample is adequate KMO and Bartlett's Test The purpose of KMO is to measure the strength of the relationship among variables. KMO test value is between 0 and 1. A high value (close to 1) indicates that the factor analysis is useful for the data while less than 0.50 results into factor analysis not useful Bartlett’s Test Sphericity Summary Significant level at 95%, α=0.05 P-value (sig) 0.000 < 0.05. This indicates sufficient correlation exists among variables Hence the factor Analysis is satisfactory KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .839 Bartlett's Test of Sphericity Approx. Chi-Square 1434.023 df 253 Sig. .000
  • 41. Table 4. 11: TEST OF HYPOTHESIS This means that the linear regression explains independent variables at 57.8% of the variability of the dependent variable. In a nutshell, the linear regression explains 57.8% of the variance in the data The statistical analysis shows that the adjusted R-value of the model is 0.564 (56.4%) with R Square value of 0.578 (57.8%). Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .760a .578 .564 .45976
  • 42. Table 4. 12: Linear Regression ANOVA From the SPSS output of the ANOVA table it shows that the variances are statistically significant to predict the data F (6.103) = 25.021, p<0.0001. The ANOVA test shows whether the overall regression model is suitable to fit for the data. ANOVA Model Sum of Squares df Mean Square F Sig. 1 Regression 26.603 6 4.434 25.021 .000b Residual 15.772 103 .153 Total 42.375 109
  • 43. Table 4. 13: Linear Regression Coefficient Coefficientsa Model Unstandardized Coefficients Standardize d Coefficients t Sig. B Std. Error Beta 1 (Constant) 2.656 .371 1.765 .000 PEOU .167 .066 .203 2.543 .013 PU .236 .042 .359 3.852 .001 Attitude .448 .074 .496 6.072 .000 Self-efficacy .188 .058 .250 3.234 .002 Security and Privacy .152 .039 .194 3.859 .000 Perceived risk .112 .163 .015 1.192 .043 Perceived trustworthy .080 .062 .116 1.295 .005 Government support .026 .059 .036 .443 .059 From the table above, the SPSS linear regression analysis result shows that PEOU (t=2.543, p<0.013), PU (t=3.852, p<0.001), Attitude (t=6.072, p<0.0001), Self-efficacy (t=3.234, p<0.002), Security and privacy (t=3.859, p<0.0001), Perceived Risk (t=1.192, p<0.043), Perceived trustworthy (t=1.295, p<0.005), Since the p<0.0001 is less than the chosen significant level α=0.05; PEOU, PU, Attitude, Self-efficacy. Perceived risk, perceived trustworthy are statistically significant. However, Government Support is almost significant at (t=.443, p<0.059). This is because the significant level is greater than the chosen alpha level (α=0.05).
  • 44. Interpretation Of The Hypothesis Results (Findings)
  • 45. Table 4. 14: Perceived Ease of Use (PEOU) show positive significant to use İnternet Banking This statement explains the SPSS results which show significant effects on the dependent variables. The statistic is significant at (t=2.543, p<0.013), which means that we can reject the null hypothesis and accept the alternative This statistical result has correlated with Davis (1989) studies on Technology Acceptance Model (TAM) which predicts the adoptability and acceptability of technology by the individual. An application perceived to be easier to use than another is more likely to be accepted by users. PEOU has a positive and negative impact on the usage of any electronic devices. The easier the usage of the system, the higher the consumption rate. When the system is easy to learn, customer’s intention to adopt it is high (Davis 1970). Katsayı Model Standardize Edilmemiş Katsayılar Standardize Edilmiş Katsayılar t Sig. B Std. Error Beta 1 (Sabit) 2.656 0.371 1.765 0 PEOU 0.167 0.066 0.203 2.543 0.013
  • 46. Table 4. 15: Perceived Usefulness shows positive significant on adoption and use of internet banking From the SPSS statistical result, Perceived Usefulness is significant (t=3.852, p<0.001). This result correlated with Davis (1989) which stated that a system can have a positive and negative impact on the individual performance. This explains why due to perceived risk, a trust issue, security, and privacy, some customers still using traditional banking as the best banking service Davis (1989, 320) defined Perceived Usefulness as “the degree to which a person believes that using a particular system would enhance his/her job performance. Perceived Usefulness (PU) affects attitude and manipulate the decision option. Katsayı Model Standardize Edilmemiş Katsayılar Standardize Edilmiş Katsayılar t Sig. B Std. Error Beta 1 (Sabit) 2.656 0.371 1.765 0 PU 0.236 0.042 0.359 3.852 0.001
  • 47. Table 4. 16: Attitude (A) show positive significant to the usage of traditional banking service From the statistical table above, attitude is significant in influencing the dependent variables (t=6.072, p<0.001), therefore, we can reject the null hypothesis and accept the alternative. This means that peoples attitude is significant in influencing their decision to change from traditional banking services to internet banking Attitude is about the behaviour, emotion, belief of an individual to perform a task. Attitude is enduring but it changes according to the mood and surrounding environment. Attitude has 3 models (ABC model of attitude). These are an Affective component, Behavioural component and Cognitive component. All these components have a positive and negative impact on our decision- making process. Katsayı Model Standardize Edilmemiş Katsayılar Standardize Edilmiş Katsayılar t Sig. B Std. Error Beta 1 (Sabit) 2.656 0.371 1.765 0 Tutum 0.448 0.074 0.496 6.072 0.001
  • 48. Table 4. 17: Self-efficacy (SE) shows positive effects on customer intention to use internet banking. From the SPSS statistics results, we can conclude that self-efficacy is significant (t=3.234, p<0.002). That means we reject the null hypothesis and accept the alternative. This result concurs with the theory of Self-efficacy developed by Albert Bandura (1982) where an individual’s belief in his or her capacity to execute behaviour necessary to produce specific performance attainment Self-efficacy beliefs determine how people feel, think, motivate themselves and the way they behave in public or towards accomplishing a given task People with a high sense of self-efficacy will challenge themselves to perform a difficult task as compared to ease of use Self-efficacy shows individual confident to accomplish a difficult assignment Katsayı Model Standardize Edilmemiş Katsayılar Standardize Edilmiş Katsayılar t Sig. B Std. Error Beta 1 (Sabit) 2.656 0.371 1.765 0 Öz yeterlilik 0.188 0.058 0.25 3.234 0.002
  • 49. Table 4. 18: Security and privacy shows positive significant on the usage of internet banking The results show significant level at (t=3.859, p<0.001), and because of that we accept the alternative and reject the null hypothesis Bank customers have a fear that their confidential information can be retrieved by an unauthorized person, hacked with malice intent Security and privacy issue can be in a form of unauthorized access, computer fraud, pharming, malware attack, phishing attack caused by skilled internet frauders When it comes to technological advancement, security and privacy issues always is a topic to talk about Besides the risk that comes with using technology, security and privacy affect our decision M.Less (2009, 2) defined perceived security as “potential loss due to fraud or a hacker compromising the security of an online user” Katsayı Model Standardize Edilmemiş Katsayılar Standardize Edilmiş Katsayılar t Sig. B Std. Error Beta 1 (Sabit) 2.656 0.371 1.765 0 Güvenlik ve Gizlilik 0.152 0.039 0.194 3.859 0.001
  • 50. Table 4. 19: Perceived Risk (PR) show positive significant on customers’ preference of traditional banking to internet banking The SPSS statistic results show that perceived risk is significant at (t=1.192, p<0.043), hence we can reject the null hypothesis and accept the alternative As seen from the table above, perceived risk has a positive response to customer’s preference for traditional banking. They tend to use the traditional banking not because they cannot use internet banking but because of the perceived risk in internet banking Due to the perceived risk of internet banking usage, customers find it hard to trust the website and the bank system in online service delivery Perceived risk is equivalent to the concept of uncertainty Risk such as malware and hacking caused malice harm to customer’s confidential information and risk of system break down Katsayı Model Standardize Edilmemiş Katsayılar Standardize Edilmiş Katsayılar t Sig. B Std. Error Beta 1 (Sabit) 2.656 0.371 1.765 0 Algılan risk 0.112 0.163 0.015 1.192 0.043
  • 51. Table 4. 20: Perceived Trustworthiness has positive significant on the adoption of internet banking The statistics resulting from SPSS version 22 shows that Perceived Trustworthy is significant at (t=1.295, p<0.005). The trust of a company determines customers behavioural action towards that company. Reputable company gains trust from the loyal and esteem customers as they can utilize the products without doubt of any issues interfering with their confidential information. When an individual trust financial institute, no matter the risk it takes, he/she will be a loyal customer. Trust is always an issue that comes when it concerns banking or any financial institution. Customers wanted to know how trustworthy the institution is in managing and safeguarding their finances Trust affects the individual relationship and who we choose to deal with. With trust comes confidence. Katsayı Model Standardize Edilmemiş Katsayılar Standardize Edilmiş Katsayılar t Sig. B Std. Error Beta 1 (Sabit) 2.656 0.371 1.765 0 Algılanan güvenilirlik 0.08 0.062 0.116 1.295 0.005
  • 52. Table 4. 21: Government support is significant in the adoption of internet banking From the SPSS statistics above, the result is almost significant at (t=.443, p<0.059) which means that we accept the null hypothesis and reject the alternative When a government supports the financial institute, there will be an open innovation and adopting to the latest technology becomes easy. The government can support internet banking adoption by investing in infrastructural development most especially IT infrastructure that will encourage investor’s inflow in the sector The government has a positive or negative impact on the economy. The financial institution cannot operate without abiding by government legal obligation. A country with a stable economy encourages investors to invest more in different sectors such as agriculture, mining industry, construction companies, financial institute Katsayı Model Standardize Edilmemiş Katsayılar Standardize Edilmiş Katsayılar t Sig. B Std. Error Beta 1 (Sabit) 2.656 0.371 1.765 0 Devlet desteği 0.026 0.059 0.036 0.443 0.059
  • 53. SUMMARY The research study is about internet banking suggestion for South Sudan with objectives to study factors influencing customer’s preference of traditional banking to internet banking system, customer usage of internet banking in South Sudan and factors limiting adoption of internet banking growth in South Sudan. The research study came to light because of the latest adoptability of the internet banking in many different countries that facilitate the easy transaction, checking of bank information and account management among other benefits. Majority of the population are using traditional branch-based internet banking system despite the internet advancement in the country. Customers are either unaware of the latest bank products or they were not informed.
  • 54. SUMMARY… The SPSS version 22 statistic results show that these variables are significant. The results concur with many authors who have done similar research on internet banking in different countries.. Despite Government Support is almost significant in this research, the government has a bigger role to play in infrastructural development in the country to encourage more investment.
  • 55. CONCLUSION Based on the linear regression analysis, the study concludes that there is a strong relationship between Perceived Risk, Perceived trustworthy, Security and privacy, Perceived ease of use, Perceived usefulness, Attitude, self-efficacy toward internet banking suggestion and adoption of internet banking in South Sudan. However government support is almost significant. Despite Government Support is almost significant in this research, the government has a bigger role to play in infrastructural development in the country to encourage more investment. Government strict laws on financial institution also may hinder the latest banking technologies to ease money transfer and transaction
  • 56. RECOMMENDATION I would suggest and recommend internet banking in the Republic of South Sudan. Besides the benefits, internet banking can be used as a competitive advantage. Therefore, banks need to carry out an aggressive campaign to encourage customers to use the online banking system. Since the majority of customers are not aware of the internet banking, the researcher suggests that during the opening of banking accounts, customers should be informed about all latest products, their benefits and how to use them I recommend that the government should continue to support the financial institution in the country. The government should focus on infrastructural development to encourage investors to invest more in the country.
  • 57. AREA OF FURTHER STUDIES This research has paved way for many areas of interest in internet banking in the country. Therefore, there is a need to study the profitability of internet banking in South Sudan There is a need to study consumer’s satisfaction and dissatisfaction of the online banking in South Sudan. There is a need to study the efficiency of internet banking in South Sudan.
  • 58. Closing Remarks and Questions

Editor's Notes

  1. Conventional banking system. It is profit-oriented and its purpose is to make money through interest". Islamic banks earn their money by profit and loss sharing, trading, leasing, charging fees for services rendered, and using other sharia contracts of exchange.
  2. casual research : investigation of cause-and-effect relationships.