Understanding consumer adoption of internet banking : an interpretive study in the Australian banking context

This paper reports key findings from an interpretive study of Australian banking consumer experiences with the adoption of internet banking. The paper provides an understanding of how and why specific factors affect the consumer decision whether or not to bank on the internet, in the Australian context. A theoretical framework is provided that conceptualizes and links consumer-oriented issues influencing adoption of internet banking. The paper also provides a set of recommendations for Australian banks. Specifically, the findings suggest that convenience is the main motivator for consumers to bank on the internet, while there is a range of other influential factors that may be modulated by banks. The findings also highlight increasing risk acceptance by consumers in regard to internet-based services and the growing importance of offering deep levels of consumer support for such services. Gender differences are also highlighted. Finally, the paper suggests that banks will be better able to manage consumer experiences with moving to internet banking if they understand that such experiences involve a process of adjustment and learning over time, and not merely the adoption of a new technology.

Mcommerce - a vision in time

Global mCommerce revenues are expected to grow from $400 million in 2000, to 22.2 billion by 2005 (Raczkowski, 2002) mCommerce is a key driver in developing the global information society, with applications emerging in numerous areas including banking, financial services, security services and shopping (Khalifa and Cheng, 2002). With optimistic projections regarding its growth, many researchers are actively determining the future of mCommerce. In this paper, we have tried to synthesise some predictions and evolving definitions, explored security as a critical impediment and developing solutions; investigated the mPayment scenario; and derived a futuristic research framework. Specifically, we have attempted to capture the moving mCommerce scenario in present time, with a special focus into mPayments.

The road to internet banking: understanding emerging customer issues

This paper presents findings from an empirical study of banking customer experiences with the adoption of Internet banking. Using a qualitative, interpretive grounded theory approach and single and group interviews, the study explores customer perceptions and experiences and provides an understanding of how and why specific factors affect their decision whether or not to bank on the Internet in the current era. The findings are used to develop a theoretical framework which conceptualizes and links consumer issues influencing the adoption of this application, and we also provide a set of recommendations for banks. Specifically, the findings suggest that convenience – in particular, time savings – is the major motivator to bank on the Internet, while there are a range of other influential factors which could be modulated by banks. The results also highlight increasing online risk acceptance by customers and the growing importance of deep levels of customer support for online services. Key gender differences in attitudes to Internet banking are highlighted. This study suggests that organizations will improve their management of customer attitudes to new Internet service applications by understanding the need to proactively address customer fears and misconceptions about the technologies involved.

Directors' remuneration and performance in Australian banking

This paper explores the relationship between directors' pay and performance within Australian banking, using panel data for the 1992-2005 period. The relationship between CEO pay and performance is investigated also. Several earnings models are estimated, using different dependent variables, alternate measures of performance and different estimation techniques. The results indicate an absence of a contemporaneous relationship between directors' pay and bank performance, and no association with prior year performance. However, there is a more distant pay-performance relationship, with total directors' pay having a robust positive association with earnings per share lagged two years, as well as with ROE lagged two years. The other key determinants of directors' pay in Australian banking are bank specific managerial policies, lags in the administration of pay, bank size, directors' age and directors' stock ownership. In contrast to total directors' pay, the evidence confirms a strong positive and direct association between CEO remuneration and prior year bank performance. The pay-performance association is stronger and more direct for CEO remuneration than it is for total directors' remuneration. The responsiveness of CEO pay with respect to bank performance appears to have increased over time.

To choose or not to choose: exploring Australians` views about internet banking

This paper explores Australian domestic customers' choices with regard to Internet banking, examining why it is taken up by some Australians and not others. The constructivist conceptual framework and the grounded nature of the method enabled in-depth exploration of key issues not undertaken before by the mainly positivist studies. The purposeful sample of 32 participants was selected to represent the major categories of people relevant to the research. Everett Rogers' famous analysis of 'diffusion of innovations' was one theoretical framework used to illuminate the findings; the other was digital divide factors in relation to banking choices. The findings include 1) that the major motivation for people to adopt Internet banking is convenience, closely linked to time savings and ease of accessibility, as well as confidence and skill in Internet use; and 2) that, at the time of the study, digital divide factors were playing an important part in banking choices.