Raechel Hughes, Lecturer, School of Business and Government, University of Canberra, Canberra, 2601. Email: raechel.hughes@canberra.edu.au
Andrew Hughes, Associate Lecturer, Department of Marketing, Australian National University, Email: andrew.hughes@anu.edu.au
Internet Banking, Risk, Perceptions, Consumer Behaviour, Innovation Adoption.
Australia’s major banks and credit unions have adopted online banking not only as a service for their consumers, but also as a way of maintaining lower overheads. With cheaper rates for consumers who carry out their transactions online, and the convenience and time saving of Internet banking, it is the ideal choice for time pressed bankers. Until recently, Australians were not adopting the use of Internet banking services as rapidly as expected. It was generally expected that this lack of adoption tied in with the lack of interest in E-Commerce, however, as Australians are becoming more trusting of online transactions, the question is still there as to why more young Australians are not performing their banking transactions online.
Sathye (1999) completed a study analysing the reason people were not utilising online banking in Australia. Five years later, this study has been adapted for this paper, testing the six hypotheses with younger Australians. The results indicated that age aside; Australians are still concerned about safety and security in online transactions. In addition, those who had not adopted Internet banking saw little benefit in changing from their current method of banking. Those who did utilise Internet banking regularly felt that it was convenient for them. From the results of this survey, implications for banks and credit unions are provided to increase the adoption of Internet banking services by young Australians.
This study is a preliminary study, with further research to be carried out.
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