Today, banking is an information-intensive business in which information technology (IT) is increasingly important. The nature of financial intermediaries made banks improve their production technology by focusing on distribution of products. Online banking (Internet banking) is a term used for performing transactions, payments etc. over the internet through a bank’s secure website. This can be very useful, espcially for banking outside bank hours (which tend to be very short) and banking from anywhere where internet access is available. Therefore, with the help of the Internet, banking is no longer bound to time or geography. Customers all over the world have relatively easy access to their accounts 24 hours per day, seven days a week.
Nevertheless, customers interact with their banks in several ways. Most of the transactions traditionally occurred at the branch counter. This points out the need for research to identify the factors that determine acceptance of online banking by the customers. It also examines effect of based on the technology acceptance model the current research re-specifies and validates an integrated model for predicting actual use via behavioral intention service by adding one construct “perceived credibility” that reflects the user’s security and privacy concerns to the TAM’s original structure and re-examining the relationships between the proposed constructs.
Based on a sample of 264 customers from four banks which offered online banking service in Mongolia, this empirical study found that the core TAM relationships hold just as well in a Mongolian setting as they do in Western and some Asian countries. The majority of hypothesized relationships are strongly supported the appropriateness of using extended TAM to understand the intention of people to adopt online banking by the data. Therefore, our results provide evidence of the significant effects of the individual different variables (computer experience) on customer attitude through perceived ease of use and perceived usefulness. Also, the results of the study also propose that demographic factors impact heavily online banking behavior.
Specifically, education and household income were significant variables. The result suggests that a typical online banking user is relatively young, well educated with high level of income, a family members with a good job.

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