Degree Name

Doctor of Philosophy


School of Information Systems and Technology


Significant changes in the business environment globally have forced the banking sector to modify their service strategies. One of the primary goals of banks is now to leverage advances in information and communication technologies (ICT) to build and maintain long-lasting relationships with customers through the adoption of new channels that facilitate electronic banking. The literature has identified that ICTs are an ideal medium for carrying out banking activities with customers due to the cost savings offered and speed of information transmission.

While the global banking sector is one of the most up-to-date industries with regard to the use of the Internet and mobile technologies, developing countries (such as Libya) have not broadly adopted these technologies. For example, ATMs, online banking and mobile banking are either not offered or provided on a restricted basis by many banks. As developing countries now seek to catch up with the global environment, both banks and customers are likely to face challenges. Understanding the reasons for the lack of ICT usage in developing countries is useful for informing future adoption strategies and hence improving relationships between banks and their customers.

This thesis investigated (from the customers’ perspective) the factors that determine whether the Libyan banking sector can effectively utilise self-service technologies to create relationships. Specifically, it investigated the importance of online relationships with customers. These relationships can be understood through several factors including attitude, trust, quality, satisfaction and loyalty. The research sought to understand which factors drive customers to use self-service technologies as compared with traditional channels of banking.

This thesis also investigated the relationship(s) in online banking between the constructs of perceived easy of use, perceived usefulness, service quality, customer satisfaction, customer trust, technology attitude, and customer loyalty. These relationships have not previously been considered in the Libyan banking industry. The Technology Acceptance Model is extended to describe the impact of ICT in creating customer relationships in banking.

Data was collected through both surveys and interviews. All participants were Libyan citizens living in Australia, who had experience as a customer of both a Libyan bank and an Australian bank.

This thesis found that perceived usability, online banking quality, customer satisfaction, customer trust and customer loyalty are all important components of ICTfacilitated banking success. Notably, customer satisfaction mediates the relationship between online banking quality and customer loyalty. Also, the trust that the customer places in the bank needs to be considered, as it is strongly related to loyalty. The findings provide useful insight for banks in developing fitting banking strategies to meet customer needs, and further to maintain and increase the degree of relationships with customers. The interviews also provided a richer understanding of the enablers and inhibitors of e-banking adoption in the Libyan banking sector.

There are numerous factors that need to be overcome for the Libyan banking sector to achieve global competitiveness in the use of self-service ICTs. One of the most significant findings is that Libya must reach out to its citizens about Internet technology and mobile technology, improve its national technological infrastructure, and include the input of all customers in the implementation of ICT applications and services.