Evaluating User Acceptance of Online Banking Information Systems
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
Introduction
The majority of successful services or goods which come to the market exhibit an adoption
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
Introduction
The majority of successful services or goods which come to the market exhibit an adoption
References: Further reading ACNielsen.Consult (2002), “391,000 Singaporeans now take it to the bank online – up 23% on 2000”, available at: www