Advertisement

E-banking

  • Jinkook Lee
  • Jinsook Erin Cho
  • Fahzy Abdul-Rahman

Abstract

Based on the 2004 Survey of Consumer Finances (SCF), this study identifies consumer segments left out in the adoption of e-banking technologies, such as ATMs, debit cards, direct deposits, and direct payments. While variations exist for each different type of e-banking technology, e-banking laggards tend to be older, less educated, divorced or separated, and less affluent. We also compare data from the 2004 SCF with data from 1995 to examine whether significant changes exist in the determinants of e-banking adoption over this 10-year period and report how the demographics of e-banking adoption have changed over time.

Keywords

Direct Payment Direct Deposit Internet Banking Bank Market Debit Card 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Agarwal, R., & Karahanna, E. (2000). Time flies when you’re having fun: Cognitive absorption and beliefs about information technology usage. MIS Quarterly, 24(4), 665–694.CrossRefGoogle Scholar
  2. Bass, F. M. (1969). A new product growth for model consumer durables Management Science, 15(5), 215–227.CrossRefGoogle Scholar
  3. Bellis, M. (2003). Inventors of the modern computer. Retrieved January 10, 2007, from http://inventors.about.com/library/inventors/bl_ERMA_Computer.htm.Google Scholar
  4. Bielski, L. (2007). Electronic bill pay usage heats up. ABA Banking Journal, 99(2), 53–56.Google Scholar
  5. Bucks, B. K., Kennickell, A. B., & Moore, B. M. (2006). Recent changes in U.S. family finances: Evidence from the 2001 and 2004 Survey of Consumer Finances. Federal Reserve Bulletin, 92, A1–A38.Google Scholar
  6. Cunningham, L. F., Gerlach, J., & Harper, M. D. (2005). Perceived risk and e-banking services: An analysis from the perspective of the consumer. Journal of Financial Services Marketing, 10(2), 165–179.CrossRefGoogle Scholar
  7. Dabholkar, P. A. (1996). Consumer evaluations of new technology-based self service options: An investigation of alternative models of service quality. International Journal of Research in Marketing, 13, 29–51.Google Scholar
  8. Dabholkar, P. A., & Bagozzi, R. P. (2002). An attitudinal model of technology-based self service: Moderating effects of consumer traits and situational factors. Journal of the Academy of Marketing Science, 30(3), 184–201.Google Scholar
  9. Daniel, E. (1999). Provision of electronic banking in the UK and the republic of Ireland. International Journal of Bank Marketing, 17(2), 72–82.CrossRefGoogle Scholar
  10. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–339.CrossRefGoogle Scholar
  11. Dickerson, M. D., & Gentry, J. W. (1983). Characteristics of adopters and non-adopters of home computers. Journal of Consumer Research, 10(2), 225–235.CrossRefGoogle Scholar
  12. Drennan, B. (2003). E-banking history. Retrieved January 10, 2007, from http://www.drennangroup.com/history.html.Google Scholar
  13. Gatignon, H., & Robertson, T. R. (1985). A propositional inventory for new diffusion research. Journal of Consumer Research, 11(4), 849–867.CrossRefGoogle Scholar
  14. Gefen, D., & Straub, D. W. (1997). Gender differences in the perception and use of E-mail: An extension to the technology acceptance model. MIS Quarterly, 21(4), 389–399.CrossRefGoogle Scholar
  15. Gilly, M. C., & Zeithaml, V. (1985). The elderly consumer and adoption of technologies. Journal of Consumer Research, 12(3), 353–357.CrossRefGoogle Scholar
  16. Howcroft, B., Hamilton, R., & Hewer, P. (2002). Consumer attitude and the usage and adoption of home-based banking in the United Kingdom. International Journal of Bank Marketing, 20(3), 111–121.CrossRefGoogle Scholar
  17. Jayawardhena, C., & Foley, P. (2000). Changes in the banking sector—The case of internet banking in the UK. Internet Research, 10(1), 19–31.CrossRefGoogle Scholar
  18. Karjaluoto, H., Mattila, M., & Pento, T. (2002). Factors underlying attitude formation towards online banking in Finland. International Journal of Bank Marketing, 20(6), 261–272.CrossRefGoogle Scholar
  19. Kennedy, A. (1983). Development, adoption and diffusion of new industrial products. European Journal of Marketing, 17(3), 31–87.CrossRefGoogle Scholar
  20. Kennickell, A. B., & Kwast, M. L. (1997). Who uses electronic banking? Results from the 1995 Survey of Consumer Finances. Paper presented at the Annual Meeting of the Western Economic Association, Seattle, WA.Google Scholar
  21. Kim, B., Yilmazer, T., & Widdows, R. (2005). The determinants of consumers’ adoption of Internet banking. Proceedings, Federal Reserve Bank of Boston.Google Scholar
  22. Klee, E. (2006) Families’ use of payment instruments during a decade of change in the U.S. payment system. Working Paper, Board of Governors of the Federal Reserve System.Google Scholar
  23. Kolodinsky, J. M., Hogarth, J. M., & Hilgert, M. A. (2004). The adoption of electronic banking technologies by US consumers. International Journal of Bank Marketing, 22(4), 238–249.CrossRefGoogle Scholar
  24. Lassar, W. M., Manolis, C., & Lassar, S. S. (2005). The relationship between consumer innovativeness, personal characteristics, and online banking adoption. International Journal of Bank Marketing, 23(2), 176–200.CrossRefGoogle Scholar
  25. Lee, E., & Lee, J. (2000). Haven’t adopted electronic financial services yet? The acceptance and diffusion of electronic banking technologies. Financial Counseling and Planning, 11(1), 49–61.Google Scholar
  26. Lee, E., Lee, J., & Schumann, D. W. (2002). The influence of communication source and mode on consumer adoption of technological innovations. Journal of Consumer Affairs, 36(1), 1–27.CrossRefGoogle Scholar
  27. Lockett, A., & Littler, D. (1997). The adoption of direct banking services. Journal of Marketing Management, 13(8), 791–811.CrossRefGoogle Scholar
  28. Mattilia, M., Karjaluoto, H., & Pento, T. (2003). Internet banking adoption among mature customers: Early majority or laggards? Journal of Services Marketing, 17(5), 514–528.CrossRefGoogle Scholar
  29. McGrath, J. C. (2005). Will online bill payment spell the demise of paper checks? Payment Cards Center Discussion Paper 05-08, Federal Reserve Bank of Philadelphia.Google Scholar
  30. Mester, L. J. (2006). Changes in the use of electronic means of payment: 1995–2004. Business Review, Q2, 26–30.Google Scholar
  31. Meuter, M. L., Ostrom, A. L., Roundtree, R. I., & Bitner, M. J. (2000). Self-service technologies: Understanding customer satisfaction with technology-based service encounters. Journal of Marketing, 64(3), 50–64.CrossRefGoogle Scholar
  32. Mick, D. G., & Fournier, S. (1998). Paradoxes of technology: Consumer cognizance, emotions, and coping strategies. Journal of Consumer Research, 25(2), 123–43.CrossRefGoogle Scholar
  33. Midgley, D. F., & Dowling, G. R. (1978). Innovativeness: The concept and its measurement. Journal of Consumer Research, 4(4), 229–242.CrossRefGoogle Scholar
  34. Rogers, E. M. (1965). Diffusion of innovations. New York: The Free Press.Google Scholar
  35. Sathye, M. (1999). Adoption of internet banking by Australian consumers: An empirical investigation. International Journal of Bank Marketing, 17(7), 324–334.CrossRefGoogle Scholar
  36. Stavins, J. (2002). Effect of consumer characteristics on the use of payment instruments. New England Economic Review, 3, 19–31.Google Scholar
  37. Taube, P. M. (1988). The influence of selected factors on the frequency of atm usage. Journal of Retail Banking, 10(1), 47–52.Google Scholar
  38. Taylor, S., & Todd, P. A. (1995). Understanding information technology usage: A test of competing models. Information Systems Research, 6(2), 144–176.Google Scholar
  39. Walker, R. H., Craig-Lees, M., Hecker, R., & Francis, H. (2002). Technology-enabled service delivery: An investigation of reasons affecting customer adoption and rejection. International Journal of Service Industry Management, 13(1), 91–106.CrossRefGoogle Scholar
  40. Zeithaml, V. A., & Gilly, M. C. (1987). Characteristics affecting the acceptance of retailing technologies: A comparison of elderly and non-elderly consumers. Journal of Retailing, 63(1), 49–68.Google Scholar
  41. Zinman, J. (2005). Debit or credit? Proceedings, Federal Reserve Bank of Boston.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  • Jinkook Lee
    • 1
  • Jinsook Erin Cho
  • Fahzy Abdul-Rahman
  1. 1.Department of Consumer SciencesOhio State UniversityColumbusUSA

Personalised recommendations