Customers' adoption of banking channels in Hong Kong
- 1 May 2005
- journal article
- research article
- Published by Emerald in International Journal of Bank Marketing
- Vol. 23 (3), 255-272
- https://doi.org/10.1108/02652320510591711
Abstract
Purpose: The study sought to investigate factors that influenced Hong Kong bank customers’ adoption of four major banking channels, i.e. branch banking, ATM, telephone banking, and internet banking. Specifically, it aimed to focus on the influences of demographic variables and psychological beliefs about the positive attributes possessed by the channels.Design/methodology/approach: Based on extant literature on bank marketing and interviews with ten bank managers in Hong Kong, a questionnaire was designed. Then, in a large‐scale survey by means of mall‐intercept and telephone interviews, we successfully obtained data from 314 bank customers.Findings: Overall, ATM was the most frequently adopted channel, followed by internet banking and branch banking, and telephone banking was the least frequently adopted channel. Psychological beliefs about the extent to which a channel possessed certain positive attributes were more predictive of adoptions of ATM and internet banking than adoptions of branch banking and telephone banking. Demographic backgrounds were strongly associated with adoption of all banking channels except ATM. A major research implication is that the theory of reasoned action is less applicable when a behavior is habitual, such as the adoptions of branch banking and telephone banking.Research limitations/implications: The managerial implications are that telephone banking can be gradually phased out, whereas internet banking is becoming the dominant channel in the future. For branch banking, different marketing strategies should be adopted for those who are financially and cognitively less resourceful, and those who are wealthier but higher time cost.Originality/value: The value of the study for bank managers is that it provides an updated account of the banking behaviors of Hong Kong bank customers.Keywords
This publication has 23 references indexed in Scilit:
- Adoption of Internet banking among sophisticated consumer segments in an advanced developing countryInternational Journal of Bank Marketing, 2004
- Success factors in e‐channels: the Malaysian banking scenarioInternational Journal of Bank Marketing, 2003
- The diffusion of Internet banking among Singapore consumersInternational Journal of Bank Marketing, 2003
- Online banking in transition economies: the implementation and development of online banking systems in RomaniaInternational Journal of Bank Marketing, 2002
- Consumer attitude and the usage and adoption of home‐based banking in the United KingdomInternational Journal of Bank Marketing, 2002
- Customer adoption of tele‐banking technology:the case of Saudi ArabiaInternational Journal of Bank Marketing, 2001
- Online banking: a field study of drivers, development challenges, and expectationsInternational Journal of Information Management, 2001
- Provision of electronic banking in the UK and the Republic of IrelandInternational Journal of Bank Marketing, 1999
- Customer needs and front‐office technology adoptionInternational Journal of Bank Marketing, 1997
- Prediction of goal-directed behavior: Attitudes, intentions, and perceived behavioral controlJournal of Experimental Social Psychology, 1986