Why consumers are not using internet banking: a qualitative study

TLDR

The study investigates why consumers resist using internet banking. The authors surveyed 127 non‑internet‑banking consumers to gather data. Eight factors—risk perception, need, lack of knowledge, inertia, inaccessibility, desire for human touch, pricing concerns, and IT fatigue—explain why consumers avoid internet banking and offer a basis for strategies to boost adoption. The study could not obtain a random sample due to lack of a list of non‑internet‑banking consumers.

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.