Dynamics of Internet Banking Adoption

CCP Working Paper No. 06-3

63 Pages Posted: 28 Jun 2006

See all articles by Yoonhee Tina Chang

Yoonhee Tina Chang

University of Bath - School of Management

Date Written: October 2005


This paper analyses the behaviour of banks' customers when a new technology (internet banking) is introduced. The determinants of consumer adoption of internet banking are characterised using survey data from Korea in both static and dynamic frameworks. There is evidence that adoption of internet banking is influenced by sex, age, marital status, degree of exposure to internet banking, and the characteristics of the banks. A duration analysis shows no evidence of first mover advantage (order effects) in internet banking whilst the largest bank (rank effects) in commercial banking remains dominant in internet banking. The results imply that the internet banking adoption is dominated by social norm effects.

Keywords: Internet banking, technology adoption, first-mover advantage, pre-emption, social norm

JEL Classification: D80, G21, G28, L00, L89, O33

Suggested Citation

Chang, Yoonhee Tina, Dynamics of Internet Banking Adoption (October 2005). CCP Working Paper No. 06-3, Available at SSRN: https://ssrn.com/abstract=911602 or http://dx.doi.org/10.2139/ssrn.911602

Yoonhee Tina Chang (Contact Author)

University of Bath - School of Management ( email )

Bath, Avon BA2 7AY
United Kingdom
+44 (0)1225 383744 (Phone)

HOME PAGE: http://people.bath.ac.uk/ytc23

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