Adoption of Internet banking and the future of banking

Internet has been more and more popular, accessible and powerful. Like other industries, the banking industry is now using the Internet as a business technology strategy. Internet banking acceptance has become a vital issue, which can take bank’s process to further innovation as well as re-establishing the service delivery when customers can do activities by themselves at home.


Why Internet Banking?


Internet banking is meant to provide 24/7 services for banking customers. It gives customers the convenience to access their account no matter what where they are 24 hours a day. Customers do not need to queue up, wait for hours to be served in a branch. Moreover, they are not only save time for branch visit but also money when they can do most of thing with mobile apps. There is easy way for customers to view their bank statements, set up direct debits, pay bills such as gas or electricity, transfer money to another account and other activities by themselves through apps.



Factors in Consumer Adoption of Internet Banking


  1. Attention: Gaining consumer attention is the most and the first important thing in adopting Internet banking because the difference in range of customers need multiform methods.
  2. Accessibility: Internet accessibility plays a vital role in adoption decision so there should be a “dedicated and unchallenged access” (Lichtenstein, S, Williamson, K 2006).
  3. Self-efficacy: One of motivation in adopting Internet banking when customers are familiar with the applications.
  4. Convenience: The most obvious advantages of using Internet banking when it provides 24/7 access, time saving and personal safety.
  5. Usability: The rejection of complexity, the approach of integratability/interoperability.


Achievements and challenges


The number of customers using digital banking is more and more growing and incessantly developing. In Australia, the proportion of bank customers using the Internet to assist transactions in an average four-week period has increased to 62.2% from 2013 to 2015 (Morris, N 2015). The rapid growth of Internet banking in popularity is inherent in the high satisfaction levels of customers than traditional bank.



Achievements always come along with challenges that need to be concern. Information security and information privacy are most considered issues when it can be hacked or the subject of malware. There are some types of costs restricted the customers’ use of Internet banking such as: identified procedural, financial and relational costs considered by consumers when switching between various types of service offerings (Burnham et al. 2003). Customers stated that setting up procedure is one significant barrier they had overcome.



The future of banking


It is believed that, in the future of banking, human physical strength will be released as well as customers will feel more comfortable when using Internet banking due to development, credibility and improvement.



By Linhnamiz – 213327923


Kien, S, Soh, C, Weill, P & Chong, Y 2015, “Rewiring the Enterprise for Digital Innovation: The Case of DBS Bank”, The Asian Business Case Centre;


Lichtenstein, S, Williamson, K 2006, “Understanding consumer adoption of Internet banking: an interpretive study in the Australian banking context”, Journal of Electronic Commerce Research, 2006, Vol. 7 Issue 2, p50.


Morris, N 2015, The rise of Internet banking, Roy Morgan Research, Finding No. 5203 <;.


3 thoughts on “Adoption of Internet banking and the future of banking

  1. Good topic. The way consumers are doing banking is already completely changed. Majority of the customers have been completely involved in internet banking.

    Liked by 1 person

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