Author(s)

Y. T. Chang

Abstract

Studies on adoption of new technologies have focused mainly on the behaviour of adoption and on efficiency gains from advancement in the state of technology. The contention of this study is that it is more appropriate to regard the adoption of technology in the banking industry in dual aspects by banks and by customers, given the intermediary role of banks. Despite growing interest in e-Commerce and financial activities, consumer choice decisions as to whether to adopt banking on the Internet has not been fully investigated in the literature. Applying data from Korea on the adoption of on-line banking, the study evaluates consumer characteristics that affect the adoption decision. The study focuses insight on whether the time value perceived by consumers affects their adoption decision to banking on the Internet, introducing decision criteria. The study furnishes helpful information for managers in the banking industry, regarding customer characteristics of trust and risk factors that determine adoption of banking on the Internet. Keywords: consumer adoption, Internet banking, perceived time value, risks and trust. 1 Background The banking industry has been significantly influenced by evolution of technology. The growing applications of computerized networks to banking reduced the cost of transaction and increased the speed of service substantially. In particular, the nature of financial intermediaries made banks improve their production technology, focusing especially on distribution of products. In other words, the evolution of banking technology has been mainly driven by changes in distribution channels, such as the development of over-the-counter (OTC),

Keywords

consumer adoption, Internet banking, perceived time value, risks and trust.