INVESTIGATING THE FACTORS AFFECTING THE ADOPTION OF E-BANKING SERVICES IN BANKS

This study investigates the factors influencing the adoption of e-banking services in commercial banks in Malawi, using a case study approach at a selected financial institution. The research was motivated by the persistent gap between the availability of digital banking solutions and their actual uptake among customers, despite significant investments in e-banking infrastructure by banks in Malawi.

The study employed a mixed-methods research design, combining quantitative and qualitative approaches to provide a comprehensive understanding of the adoption dynamics. Data were collected from 40 respondents, comprising 35 customers through structured questionnaires and 5 bank employees through semi-structured interviews. The sample was drawn using stratified random sampling techniques, achieving a 100% response rate. Quantitative data were analyzed using descriptive statistics presented in tables and figures, while qualitative data were subjected to thematic analysis following Braun and Clarke's (2006) framework.

Key findings reveal that awareness of e-banking services is universal among respondents (100%), indicating effective promotional efforts by the bank. However, actual adoption is moderated by several critical factors. Perceived ease of use emerged as significant, with 74.2% of respondents agreeing that e-banking platforms are user-friendly. Security perceptions were generally positive, with 80% acknowledging adequate safety measures, yet 20% remained uncertain, highlighting persistent trust concerns. Trust in the institution was identified as a driver for 77.1% of respondents.

Significant barriers to adoption included poor internet connectivity (67.6%), low digital literacy levels (68.6%), and inadequate customer support and training programs, with only 31.4% recognizing the existence of training initiatives. Customer satisfaction levels were moderate, with 62.8% expressing satisfaction with service quality, while gaps in reliability, customer support responsiveness, and cost transparency were noted.

The study concludes that while the selected bank has made commendable strides in digital service provision and awareness creation, infrastructural deficits, educational gaps, and perceptual challenges continue to impede widespread adoption. The findings underscore the need for multi-stakeholder interventions addressing connectivity infrastructure, digital literacy programs, enhanced customer support systems, and strengthened security communication. Recommendations include investing in robust digital infrastructure, implementing targeted customer education initiatives, improving service reliability, and fostering transparent communication about security protocols and fee structures. This research contributes to the body of knowledge on e-banking adoption in developing country contexts and provides actionable insights for financial institutions, policymakers, and technology providers seeking to advance financial inclusion in Malawi.