The diffusion of Internet banking among Singapore consumers

TLDR

Internet banking is a costly self‑service technology that major retail banks have recently introduced. The study aims to identify eight factors that influence consumer acceptance of Internet banking to help bank managers implement the service. Accessibility and confidentiality emerge as novel drivers, and adopters perceive the service as more convenient, less complex, compatible with PC proficiency, and financially innovative, though their views on social desirability, confidentiality, accessibility, and economic benefits are similar to those of non‑adopters.

Abstract

Internet banking is a form of self‐service technology, costing millions of dollars, which leading retail banks have made available in the recent past. An understanding of why users are more accepting of Internet banking services should help bank managers implement this self‐service technology. This study identifies eight characteristics which influenced the rate of adoption. Two of these characteristics, namely accessibility and confidentiality, are new to the literature. The results show that adopters of Internet banking perceive the service to be more convenient, less complex, more compatible to them and more suited to those who are PC proficient. Adopters were also found to be more financially innovative. The perceptions that adopters had about social desirability, confidentiality, accessibility and economic benefits were viewed no differently when adopters were compared with non‐adopters.