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Article
Publication date: 19 March 2024

Junsung Park, Joon Woo Yoo, Youngju Cho and Heejun Park

This study aims to understand the reasons for individuals switching from traditional banks to Internet-only banks and examine how switching intentions differ between Generation X…

Abstract

Purpose

This study aims to understand the reasons for individuals switching from traditional banks to Internet-only banks and examine how switching intentions differ between Generation X and Generation Z. Notably, Generation Z, being digital natives, exhibits distinct characteristics compared to Generation X, who often referred to as digital immigrants. Given the technology-driven nature of Internet-only banks, a multi-group analysis between these two generations was conducted.

Design/methodology/approach

This study utilizes Bansal’s push–pull–mooring model as a framework to analyze switching intention. The study collected survey data from 383 Korean participants, consisting of 198 participants from Generation Z and 185 participants from Generation X.

Findings

The findings indicate that low satisfaction and discomfort are factors that push people to leave traditional banks. Specifically, Generation Z shows a significantly higher inclination to leave traditional banks due to discomfort. On the other hand, relative advantage, compatibility, observability and trialability are factors that pull people to switch to Internet-only banks. Generation X is more likely to consider adopting Internet-only banks when compatibility is high and complexity is low.

Originality/value

This study is the first to explore unique motivators for Generation Z, such as their discomfort with interpersonal interactions in the retail banking sector. These findings challenge earlier research emphasizing human interaction’s importance in technology adoption, offering insights into their future adoption of contactless services.

Details

International Journal of Bank Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 28 October 2019

Souheila Kaabachi, Selima Ben Mrad and Anne Fiedler

The purpose of this paper is to demonstrate how an e-bank’s structure (click-and-mortar bank vs internet-only bank) influences the consumer’s evaluation of website quality, and to…

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Abstract

Purpose

The purpose of this paper is to demonstrate how an e-bank’s structure (click-and-mortar bank vs internet-only bank) influences the consumer’s evaluation of website quality, and to identify the most significant website features that influence online trust and lead to consumer loyalty.

Design/methodology/approach

A non-probability convenience sample of 476 online bank users (248 click-and-mortar and 230 internet-only bank users) was used in this study. An online survey was conducted. Structural equation modeling and multi-group analysis were used to analyze the data.

Findings

Findings suggest that e-trust and e-loyalty levels depend on the e-banking structure. Click-and-mortar-based online users were found to have more trust and loyalty in their online banks than internet-only bank users. Findings demonstrate that website features are evaluated differently according to the e-bank structure. Information design and interactivity are very important for internet-only banks, and their effect on online trust seems to be higher. On the other hand, website personalization was evaluated as more important for click-and-mortar banks and had a stronger impact on online trust.

Practical implications

To promote the trustworthiness of their websites and retain customers, internet-only banks should make the experience more tangible for users by developing a pleasant online experience. Personalization is an important variable that can enhance the consumer’s engagement with the brand. Click-and-mortar banks should enhance their interactivity by providing a continuous and consistent experience across different channels of distribution whether online or in-person and provide more interactive tools on their websites.

Originality/value

This study contributes significantly to the marketing research literature related to consumer trust as well as to the electronic banking literature. It is the first study to compare customers of click-and-mortar banks with customers of internet-only banks when evaluating website features. It also explores the impact of the e-bank model on the relationship between website features and online trust and customer loyalty.

Details

International Journal of Bank Marketing, vol. 38 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 14 February 2020

Jin-Myong Lee and Hyo-Jung Kim

The purpose of this study is to investigate the determinants of consumers' intention to adopt or continue to use Internet-only banks based on the benefit–risk framework and…

2296

Abstract

Purpose

The purpose of this study is to investigate the determinants of consumers' intention to adopt or continue to use Internet-only banks based on the benefit–risk framework and network externality theory. It also examines the difference in the determinants between pre- and postadoption stages of innovation.

Design/methodology/approach

The proposed research model was tested by using online survey data collected from a South Korean sample, which was divided into two subgroups of 321 nonadopters and 351 existing users.

Findings

In both pre- and postadoption stages, the number of services provided and trust had a significant positive impact on consumers' behavioral intentions, while security risks had a negative impact. Critical mass in the preadoption stage and convenience and economic efficiency in the postadoption stage had positive effects on consumer's adoption intention and continuance intention, respectively.

Practical implications

Internet-only banks must reduce the security risks for consumers and increase their trust. In addition, to facilitate the adoption of nonadopters, focus should be on securing a critical mass; on the other hand, to promote the continued use of existing users, the focus should be on enhancing benefits such as convenience and economic efficiency.

Originality/value

The results of this study confirm the influence of network externalities on consumers' adoption and use of financial technology services and show differences in consumer decision-making according to the innovation diffusion process.

Details

International Journal of Bank Marketing, vol. 38 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 15 January 2018

Yun Zhang, Xiaogang Chen, Xinhui Liu and Nan Zhu

With the development of information technology, there is a growing trend for internet enterprises in China to launch internet-only banks. This paper aims to explore how the brand…

1354

Abstract

Purpose

With the development of information technology, there is a growing trend for internet enterprises in China to launch internet-only banks. This paper aims to explore how the brand trust in an internet enterprise is transferred to the initial trust in its affiliated internet-only bank and how such transfer affects adoption behavior of potential internet-only banking users.

Design/methodology/approach

Data were obtained from online questionnaires via a well-known Chinese survey website and a popular Chinese social platform, which yielded 486 usable responses for the analysis. Partial least squares was used for testing hypotheses.

Findings

The results show that brand trust in the internet enterprise increases initial trust in its affiliated internet-only bank. This, in turn, enhances the adoption of internet-only banking. More importantly, these results show that brand trust in the internet enterprise transfers to initial trust in internet-only banking through performance expectancy and perceived risk. Further, the need for interaction moderates the relationship between brand trust and performance expectancy as well as the relationship between brand trust and perceived risk.

Originality/value

This study provides new insights into the mechanism by which trust is transferred between two affiliated business entities. The results of the study suggest several useful managerial implications for managing the internet-only banks.

Details

Chinese Management Studies, vol. 12 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 1 December 2001

Minjoon Jun and Shaohan Cai

Focuses on the issues associated with Internet banking service quality. Customer anecdotes of critical incidents in Internet banking were content‐analyzed. Identified a total of…

21852

Abstract

Focuses on the issues associated with Internet banking service quality. Customer anecdotes of critical incidents in Internet banking were content‐analyzed. Identified a total of 17 dimensions of Internet banking service quality, which can be classified into three broad categories – customer service quality, banking service product quality, and online systems quality. The derived dimensions include: for customer service quality, ten dimensions such as reliability, responsiveness, competence, courtesy, credibility, access, communication, understanding the customer, collaboration, and continuous improvement; for online systems quality, six dimensions such as content, accuracy, ease of use, timeliness, aesthetics, and security; and for banking service product quality, one dimension of product variety/diverse features. Also revealed that, in terms of frequency of references to the 17 dimensions, no substantial differences exist between Internet‐only banks and traditional banks offering Internet banking service. The most frequently mentioned dimensions, as the main sources of satisfaction or dissatisfaction, were reliability, responsiveness, access, and accuracy. Some suggestions and recommendations were provided to improve the Internet banking service quality and, in turn, customer satisfaction.

Details

International Journal of Bank Marketing, vol. 19 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 22 January 2021

Jong Ho Lee, Jaehyeon Jun, Junsung Park, Joon Woo Yoo and Heejun Park

Digital stickers are being used frequently due to a rapid increase in the usage of mobile messenger services. Moreover, characters featured on digital stickers are being used as…

Abstract

Purpose

Digital stickers are being used frequently due to a rapid increase in the usage of mobile messenger services. Moreover, characters featured on digital stickers are being used as spokes-characters for brand marketing and advertisements. These characters create positive consumer attitude toward the brand and the brand's product or service.

Design/methodology/approach

Based on 307 surveys collected in Korea, this paper examines the relationship between the dimensions of the characters and the usage intention of an Internet-only banking service.

Findings

Results indicate that unlike conventional spokes-characters, the expertise of sticker characters does not have an influence on usage intention. However, all three dimensions of characters are effective in forming a positive brand equity, and this has a mediating role in enhancing usage intention.

Originality/value

Current research has brought academic attention to characters featured on digital stickers and have verified their significant role. Moreover, in an Internet-only banking context, branding strategy is an effective way to encourage customers to use services. Theoretical implications are addressed, as are implications for managers who are looking for a character that will execute effective marketing campaigns.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 33 no. 8
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 4 September 2017

Souheila Kaabachi, Selima Ben Mrad and Maria Petrescu

The purpose of this paper is to investigate internet-only banks’ (IOBs) adoption by French consumers and attempt to understand the factors that influence consumers’ initial trust…

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Abstract

Purpose

The purpose of this paper is to investigate internet-only banks’ (IOBs) adoption by French consumers and attempt to understand the factors that influence consumers’ initial trust in this type of service.

Design/methodology/approach

A non-probability convenience sample of potential IOBs adopters from France was used to test a structural equation model that analyzed the antecedents of initial trust and usage intentions of IOBs.

Findings

The study shows that trust is a major influencer in IOBs’ adoption in France. It has also been found that consumer familiarity with internet banking, high perceived structural assurance, perceived website quality, bank reputation and relative advantage are critical factors influencing IOBs’ initial trust formation.

Research limitations/implications

This study shows the applicability of the initial trust-building model in the context of IOBs and underlines the importance of factors such as familiarity, reputation and perceived quality in the context of online banking services in France.

Practical implications

This paper provides e-banking companies with the most important factors that contribute to build the initial trust of customers. E-banks need to focus on making themselves known and promoting their brand more effectively through advertising and advocacy.

Originality/value

This study contributes significantly to the marketing research related to consumer trust and brand reputation, as well as to the electronic banking literature. The results show the importance of initial trust in the context of services and the main factors that influence it, including a key branding variable such as reputation. The paper also focuses on the IOBs’ adoption in France, a market understudied compared to the USA, and seeks to understand the mechanisms associated with the initial formation of French consumers’ trust toward it.

Details

International Journal of Bank Marketing, vol. 35 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 5 June 2009

Alan D. Smith

The purpose of this paper is to examine the online retail banking industry and determine if there is evidence that online banking will be a dominant player in the financial…

5583

Abstract

Purpose

The purpose of this paper is to examine the online retail banking industry and determine if there is evidence that online banking will be a dominant player in the financial services retail marketplace.

Design/methodology/approach

An analysis of 22 banks is conducted and it is determined that the barriers to entry that are identified may not be enough to prohibit a substantial number of entrants into the marketplace.

Findings

Using Porter's five‐force model to conduct the industry analysis; online banking is still in its infancy, although with great potential. According to FDIC, while approximately 40 percent of the 10,623 banks and thrifts in the US market have a website, only 376 offer transactional internet banking at the time of the study. About 30 internet‐only banks or a pure‐play format operate in the USA. All of the web‐only banks in the USA combined have about 250,000 depositors, out of the nearly six million customers who have stated that they do significant banking activities over the internet.

Practical implications

Owing to the different types of potential suppliers, the suppliers in the online‐banking industry do not appear to have as big a bargaining power in this industry as they would in another industry. Buyers, however, hold the keys to success in the online‐banking industry. Buyers do not need the product that is offered due to the many substitute products available in the market.

Originality/value

In the end, the rivalries among banks lead them to differentiating their internet banking products which is what will afford one bank to have a competitive advantage over the rest of the market.

Details

Information Management & Computer Security, vol. 17 no. 2
Type: Research Article
ISSN: 0968-5227

Keywords

Article
Publication date: 2 November 2023

Valeriia Melnyk

This study aims to explore how the shift from traditional to digital banking transforms the nature of trust between banks and their younger clients (aged 18–35) from the…

Abstract

Purpose

This study aims to explore how the shift from traditional to digital banking transforms the nature of trust between banks and their younger clients (aged 18–35) from the perspective of bank employees.

Design/methodology/approach

Qualitative semi-structured interviews with representatives of Ukrainian classical banks and neobanks were conducted. The interviews were analysed using the theoretical approach of institution-based and social network-based trust to identify the key distinctions between the nature of trust in traditional and digital banking.

Findings

The employees of the banks reported that digitalization processes have helped to mitigate trust issues; as a result, their banks have not experienced any difficulties in this regard among young people. Furthermore, social networks, particularly social approval, were found to be significant factors for establishing trust in digital banking among young people.

Research limitations/implications

The results of this study could assist bank managers in adapting their strategies for cultivating trust among younger clients and aiding international law regulators and government institutions in preventing unintended circumstances in financial services. These contributions were shaped by the study’s limitations, including its focus on only two concepts of trust building: institution-based and social network-based, as well as its specific Ukrainian context.

Originality/value

This study highlights social approval as a valuable constituent of the trust-building process that influences trust in institutions. Furthermore, while gaining social approval – particularly through digital platforms – can promote trust-building among young people, this “easy way” may have negative societal consequences by endorsing unscrupulous institutions.

Details

Qualitative Research in Financial Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 22 February 2013

Ather Akhlaq and Ejaz Ahmed

The aim of this study is to find out the type of motivation that provokes an individual to trust and use the internet banking system in a low income country. In this paper…

3712

Abstract

Purpose

The aim of this study is to find out the type of motivation that provokes an individual to trust and use the internet banking system in a low income country. In this paper, extrinsic motivation and intrinsic motivation are studied that may build trust in an individual to accept internet banking technology.

Design/methodology/approach

With the sample size of 109 respondents, structural equation modeling is used to find the measurement and the structural model for this research.

Findings

Extrinsic motivation did not fit within the measurement model and was therefore excluded. Finally, the research model showed that intrinsic motivation is responsible in building user's trust in the acceptance of internet banking.

Research limitations/implications

This research is difficult to generalize because of the relatively small sample size. However, the sample has been taken from the biggest city of Pakistan, Karachi, which accommodates people from almost every region of the country suggesting that the results could be generalized to an extent. Future research can use this model to study the adoption of internet banking in other regions.

Practical implications

This research contributes to the banking industry including foreign banks that have laid the foundations and infrastructure for a robust internet banking environment but still have not reached the optimal user base due to lack of trust. Banks need to follow a strategy to work on intrinsic motivational factors such as perceived ease of use, and perceived enjoyment to induce trust in individuals to attract more internet banking users.

Originality/value

Despite the benefits, internet banking is not being used extensively in low income countries. The research fills the gap for the low income country by using the motivation theory and the technology acceptance model to increase the level of trust in individuals to adopt internet banking. This integrated model can also be applied to other developing countries which are relatively new to internet banking.

Details

International Journal of Bank Marketing, vol. 31 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

1 – 10 of 189