Evaluating User Acceptance of Online Banking Information Systems

Topics: Bank, Online banking, Internet Pages: 23 (7820 words) Published: January 31, 2011
Why consumers are not using internet banking: a qualitative study Philip Gerrard
Nanyang Business School, Nanyang Technological University, Singapore

J. Barton Cunningham
School of Public Administration, University of Victoria, Victoria, British Columbia, Canada, and

James F. Devlin
Nottingham University Business School, Nottingham University, Nottingham, UK Abstract Purpose – This paper illustrates why consumers are resistant to using internet banking. Design/methodology/approach – A survey was used to acquire data from 127 consumers who were not internet bank users. Findings – Using a content analysis procedure, eight factors were identified which explain why consumers are not using internet banking. In order of frequency, the factors are: perceptions about risk; the need; lacking knowledge; inertia; inaccessibility; human touch; pricing and IT fatigue. Research limitations/implications – A list of those consumers who were not internet banking users could not be sourced, meaning that a random sample could not be carried out. The factors which emerged, however, appear to provide a comprehensive understanding of why certain consumers are not internet banking users. The factors provide a useful basis for researchers to conduct studies to better understand what influences a consumer decision not to use the internet as a means of sourcing banking services. Practical implications – The findings provide a framework for creating a strategy to enhance adoption rates. Originality/value – The findings create an awareness of the various reasons explaining why consumers are not becoming internet banking users. The various reasons provide scholars with an opportunity to conduct further research in this area and practitioners with an opportunity to enhance adoption rates. Keywords Internet, Banking, Financial services, Consumer behaviour Paper type Research paper

The majority of successful services or goods which come to the market exhibit an adoption pattern which is typically S-shaped or sigmoid in form irrespective of whether they are high-tech or otherwise (Gatignon and Robertson, 1985; Onkvisit and Shaw, 1989; Boyd and Orville, 1990; and Jain, 1997). Some new services or goods reach the take-off point on the upward slope of the S-shaped pattern quite quickly, while others take far longer (Rogers, 1962). Unfortunately, a substantial majority of new services or goods do not get adopted (Foxall, 1984). Internet banking, a service delivery method introduced in 1997 (Furst et al., 2002), has been expensive to develop. Banks offering their financial services over the internet are keen to accelerate the adoption process, knowing that the cost of delivering a service over the internet is much less than delivering the same service over-the-counter (Polatoglu and Ekin, 2001). Any bank which is positioned on the upward slope of the S-shaped pattern should be optimistic about its The current issue and full text archive of this journal is available at www.emeraldinsight.com/0887-6045.htm

Journal of Services Marketing 20/3 (2006) 160– 168 q Emerald Group Publishing Limited [ISSN 0887-6045] [DOI 10.1108/08876040610665616]

ability to recover its capital outlay and make its internet operation profitable (one example would be DBS, a bank mentioned in the section immediately below). In Singapore, where the present study was conducted, the first bank began to offer some of its financial services over the internet in 1997. The 2002 annual survey of the Infocomm Development Authority of Singapore (2002) established that a little in excess of 30 percent of Singapore’s over-15 population was using internet banking. Data from this locally conducted survey and statistical data relating to other countries or regions show that, while the number of consumers using internet banking is growing, a majority still do not use the service[1]. The objective of this exploratory study is to develop a better understanding of the factors which...
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