The adoption of electronic banking technologies by US consumers

TLDR

Millions of Americans use e‑banking technologies, yet a substantial portion remain offline, raising questions about a potential e‑banking revolution in the United States. The study investigates which factors influence consumers’ adoption or intention to adopt three e‑banking technologies and how these factors evolve over time. Using a Federal Reserve Board‑commissioned dataset, the authors analyze how relative advantage, complexity/simplicity, compatibility, observability, risk tolerance, and product involvement drive e‑banking adoption. Adoption is also shaped by income, assets, education, gender, marital status, and age; while overall adoption increased, the influence of these factors remained stable, offering implications for banks and policymakers.

Abstract

Is there an electronic banking (e‐banking) revolution in the USA? Millions of Americans are currently using a variety of e‐banking technologies and millions more are expected to come “online.” However, millions of others have not or will not. This paper explores factors that affect the of adoption or intention to adopt three e‐banking technologies and changes in these factors over time. Using a Federal Reserve Board commissioned data set, the paper finds that relative advantage, complexity/simplicity, compatibility, observability, risk tolerance, and product involvement are associated with adoption. Income, assets, education, gender and marital status, and age also affect adoption. Adoption changed over time, but the impacts of other factors on adoption have not changed. Implications for both the banking industry and public policy are discussed.