Using Diffusion of Innovation Theory to Model Customer Loyalty for Internet Banking: A TT Millennial Perspective

The internet has successfully transformed the way most businesses and customers interact with each other. Many companies, including banks are using the technology as an alternative distribution channel. But despite this trend, the use of internet banking among customers in Trinidad and Tobago (TT) is limited. This paper explores the reasons for this limited use. Specifically, the study asks; what are the factors that determine the continued use of internet banking by young customers (Millennials) in TT? Through the Diffusion of Innovation Theory and Structural Equation Modeling analysis, the study showed that perceived relative advantage and to a lesser extent government support were two fundamental determinants of internet banking loyalty while trust, compatibility and awareness were driven by the perceived benefits the medium offer to customers’ lifestyle. The study concluded with a discussion of strategies bankers can