Consumer Factors Affecting Adoption of Internet Banking Services: An Empirical Investigation in Taiwan

Abstract

Banking is often regarded as an information-intensive industry. From the information process point of view, banking services primarily involve creation, processing, storage, and distribution of financial information. Although most of these services can be conveniently handled via Internet-based information technologies, adoption of Internet banking has been less than optimal. Existing research has revealed that this convenience may be offset, to varying degrees, by customer-perceived risk associated with transacting in the wide-open cyberworld. A key challenge for online bankers is to maintain a secure information infrastructure that effectively manages the perceived risk factors. This research examines usages of Internet banking services, investigates the nature and sources of customers’ perceived risks, and tests hypotheses with regard to impacts of perceived risks on Internet banking adoption. Using primary data collected in Taiwan, the study finds significant relationships among involvement, familiarity, perceived risks, perception of measures for reducing perceived risks, and customer willingness to adopt Internet banking services. The findings have significant implications for practice and research in Internet banking.