Factors hindering the usage of internet banking service by consumers in Australian context

Abstract

This paper illustrates key factors that are actually hindering the usage of internet banking service by Australian consumers. A survey with open-ended questions was used to acquire data from 220 consumers who were not using internet banking service. Qualitative data obtained was subjected to content analysis and common themes were identified resulting in eleven factors which were critical in inhibiting consumers from using internet banking. In order of frequency, the factors identified are: security, trust, privacy, risk, personal help, social influence, convenience of other banking methods, routine, technology discomfort, type of internet connectivity and banking transactions performed by spouse. The factors that emerged provide a comprehensive understanding of consumer resistance to use of the internet banking service delivery channel. Findings may help service providers formulate more effective channel design and marketing strategies in future.