Drivers and Barriers of E-banking Adoption: Case of Karafarin Bank

This paper investigates drivers, determinants and barriers of electronic banking adoption in Iran. Results of the analysis of information gathered through comprehensive interviews with the key managers of the pioneer private bank for e-banking adoption in Iran (KB) indicate that the adoption status is the transition of pre-development to development phase and the main drivers for adopting e-banking are downsizing, gaining competitive advantage, increasing market share and improving bank's image. The analysis further reveals that inefficient ICT infrastructure, political challenges and traditional organizational culture are barriers for adoption of e-banking in Iran. We conclude that banks in Iran need to web-enable themselves sooner or later and in order for the banks to overcome some of their barriers identification of the drivers for e-banking adoption would be a helpful tool.