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Currently, the banking industry is facing increasingly demanding customers and quickly eroding competitive edges. Recent technological breakthroughs in various areas, however, offer opportunities for the banks to excel in customer service quality and convenience. One area of major breakthroughs is the service delivery systems that are reshaping the banking business radically. However, there are relatively few empirical analyses of the impact of tele‐banking service technology on customers. Examines the adoption of tele‐banking in Saudi Arabia. The field findings reveal that customers increasingly extend their use of tele‐banking as their experience grows with the system. The results also indicate that in general Saudi consumers’ income levels and education play a vital role in their adoption and usage of tele‐banking technology.