ADOPTION OF INTERNET BANKING IN KAZAKHASTAN

BY : B O T A
MASTER IN BUSINESS ADMINISTRATION LIMKOKWING UNIVERSITY OF CREATIVE TECHNOLOGY FINANCE FEB 2012

Structure of The Study

Chapter 1: Introduction Chapter2: Literature Review

Chapter3: Research Methods

Chapter 4: Data Analysis Chapter 5: Conclusion and Recommendation References

Project Outline
The following Study is about the adoption if internet banking in kazakhastan

Chapter one

Introduction

Introduction Chapter 1

introduction
The applying of internet technologies to firms for enhancements in performances not a new

thing.

One e-commerce application that's becoming adopted by the banking industry is online

banking as well as e-banking. IT tools for example online banking have got given a noticeable difference in services among the banking industry (Dawes and Rowley, 1998).
Although online banking is still implemented in a lot of developed international locations like

the U.S States and individuals in Europe (Pikkarainen et al., 2004), there is certainly a growing

craze in the use of online banking by banks in developing nations as well (Gurau, 2002).

Research Objectives
To investigate the relationship between Perceived

usefulness and Adoption of online banking in Kazakhstan To investigate the relationship between Perceived Ease of use and Adoption of online banking in Kazakhstan To investigate the relationship between Government support and Adoption of online banking in Kazakhstan To investigate the relationship between Trust and Adoption of online banking in Kazakhstan

Research questions
What is the relationship between Perceived

usefulness and Adoption of online banking in Kazakhstan? What is the relationship between Perceived Ease of use and Adoption of online banking in Kazakhstan? What is the relationship between Government support and Adoption of online banking in Kazakhstan? What is the relationship between Trust and Adoption of online banking in Kazakhstan?

Problem Statement
Almost all the banks now have the Internet or Online

banking facilities to private and business users but still this is not yet implemented in many parts of kazakh Often the young generation is quicker adopting new technologies, while older people sometimes have difficulties to adapt to those changes. (Huang, 2007, pp. 114-20). Online banking is used for making transactions & payments over the Internet through a bank or credit union

Significance of Study
The whole world of business has been revolutionized

by the word called Internet which has started to facilitate various interconnections and communications among the systems all across the world (Amor , 2000) and this internet technology has not left the banks also , it has had an tremendous impact on the banking industry and its services and the needs of the customers(Kaplan & Norton,2004)

Chapter two

Literature Review

Chapter 2 Literature Review

Literature review

The study is based on Adoption of Online Banking.

Dependent Variable Adoption of Online Banking Independent Variable : Four Independent variable

Theory Applied : Theory of Reasoning (Aizhen,1976)

Chapter Three

Research Methodology Chapter-3

Research methodology
Methods of Data Collection Primary Data : Distribution of Questionnaires

Secondary Data : Journals , Articles , Magazines and Other Reputed Online Sources.

Research framework
Perceived EASE of USe

ADOPTION of ONLINE BANKING

PERCEIVED USAGE
GOVERNMENT SUPPORT TRUST

Alain et al., (2010)

Research hypothesis
H1. Perceived usefulness has a positive relationship with

the adoption of online banking in Kazakhstan

H2. Perceived ease of use has a positive relationship with

the adoption of online banking in Kazakhstan

H3 Government Support has a positive relationship with

the adoption of online banking in Kazakhstan

H4 Trust has a positive relationship with the adoption of

online banking in Kazakhstan

Chapter Four

Data Analysis

Data Analysis
Data Analysis using SPSS Software Version 16 Tasks Performed in SPSS

Descriptive Analysis
Reliability Scale Regression Analysis ( Analysis , Multiple Regression

, Multiple Regression) Correlation

Reliability Scale
Reliability Scale measures the Value of the Cronbach

Alpha.
EASE of USE
Cronbach's Alpha .720 N of Items 5 Cronbach's Alpha .645

USAGE
N of Items 5

GOVERNMENT SUPPORT
Cronbach's Alpha
Cronbach's Alpha .633 N of Items 4

TRUST
N of Items 3 .762

Co-relations
To measure the Strength of the Relationship of the

variables
Table 4.4.1 Correlations adoption ease Adoption Ease Pearson Correlation USE Trust GOV adoption ease Sig. (1-tailed) USE Trust GOV 1.000 .439 .559 .873 .883 . .000 .182 .000 .000 .439 1.000 .023 .524 .471 .000 . .361 .000 .000 USE .559 .023 1.000 .0100 .0200 .182 .361 . .438 .377 Trust .873 .524 .010 1.000 .793 .000 .000 .438 . .000 GOV .883 .471 .020 .793 1.000 .000 .000 .377 .000 .

MULTIPLE Regression

Change Statistics Model R R Square Adjusted Square R Std. Error of Square the Estimate R F Change Change .12638 .864 376.727 Sig. Change .000 F

df1

df2

.930(a)

.864

.862

237

a Predictors: (Constant), GOV, USE, ease, Trust

Co-efficients

To determine the Impact of variables and to test the Hypothesis from the significance column

Unstandardized Coefficients Model B (Constant) ease 1 USE Trust GOV .442 .066 .045 .398 .517 Std. Error .164 .028 .024 .033 .039

Standardized

Coefficients
Beta

Sig.

2.697 .066 .045 .493 .522 2.342 1.858 12.029 13.186

.008 .020 .044 .000 .000

a Dependent Variable: adoption

Chapter Five

Conclusion

And Recommenda tion

conclusion
In this study a total of four hypothesis were tested

and based on the results derived Four hypothesis were accepted were the value of the alpha was less than 0.05 which was the criteria to be accepted.

Limitations

Reluctance from the respondents to participate in

the study
The shortage of time
Feeding the Data into SPSS was a daunting Task

recommendations
The online banking industry is in a developing stage in Kazakh so it

is a must that the people realise the importance of online banking and the manner to use it.

All the four variables which were tested had a positive impact on the

variable adoption of online banking so it would be advisable to test this framework with a higher number of respondents The variable Government had the highest Impact with a value of 52% which was followed by the variable Trust which was slightly less than 50% The variable Ease of use had the lowest impact on the dependent variable. The researcher has tested only a limited number of variable due to the time constraint future researchers can study more about other variables

Thank you