Academic journal article International Journal of Business and Information

Internet Banking Non-Users: Thematic Matrix Display Analysis

Academic journal article International Journal of Business and Information

Internet Banking Non-Users: Thematic Matrix Display Analysis

Article excerpt


This study investigates themes that impact the non-adoption of internet banking by consumers in Australia. Qualitative data from a cross-sectional mall intercept survey of 311 non-users of internet banking in the Western Sydney region revealed that non-users are hindered by factors such as security, trust, risk, value, lack of resources, social influence, technology apprehension, interactivity, preference for other channels, routine, past use, and performance of the task by their spouse. The study has important implications for formulating effective strategies for service delivery channel management by implementing effective mechanisms to protect consumers' sensitive data through adequate control. The study also outlines important guidelines for practical solutions to reduce barriers to the adoption of internet banking, thus creating business customer value. The results provide bank executives, consultants, and academics with enhanced knowledge of the service areas they need to focus on to improve customer satisfaction, retention, and profitability in the financial services businesses.

Keywords: Internet banking, non-users, thematic matrix displays, Australia, qualitative fata


The financial services sector includes banking and non-bank financial services such as building societies, the securities exchange, and services ranging from finance to insurance businesses. Growth in the industry has been driven by the globalization of financial transactions, development of new and more sophisticated financial services and products, increased international activity, and significant growth in the funds management industry [Gyptra and Dixon, 2002].

Commercial banking in Australia began in the 1800s with the formation of British banks by colonists [Unnithan and Swatman, 2001]. The first central bank was the Commonwealth Bank, established in 1901 [Lyell et al., 1997]. The Reserve Bank of Australia (RBA) emerged as a separate entity in 1959 and became the national regulatory body. The Non-Bank Financial Intermediaries (NBFIs) in Australia were formed and developed in the 1960s and 1970s [Carew, 1998]. The decrease in the influence of the RBA was evident in 1979 and 1983 following the recommendations of the Campbell and Martin Committees [Carew, 1998]. Australian banks were even more open to service innovations because of the floating of the exchange rate in 1983 and the opening of the Australian banking system to foreign competitors in 1984 [Unnithan and Swatman, 2001]. In the last two decades, the financial services sector has developed rapidly in terms of size, industry, and the introduction of innovative products and services oriented toward consumers and businesses [Al-Hawari et al., 2005].

The Australian financial sector has been transformed from a relatively closed system in the 1950s and 1960s based on a conventional mode of banking to a modern and competitive system offering a wide range of products and services [Gardener et al., 1999]. An upsurge in the Australian retail banking sector's productivity was evident during the period 1986 to 1995 [Avkiran, 2000]. The Australian financial market is currently dominated by principal regulators such as the RBA, which regulates monetary policies; the Australian Prudential Regulation Authority (APRA), which oversees banking and financial institutions; and the Australian Securities and Investments Commission (ASIC), which regulates shares trading. The modern Australian banking system is characterised by four major banks that have garnered a significant portion of the market share as a result of a series of bank mergers, credit unions formed by unions and co- operatives, building societies predominantly created by housing finance demand, and funds management institutions involved in super-annuation and funds [Unnithan and Swatman, 2001]. The Australian Bankers Association (ABA) is the national organization representing licensed banks in Australia [Avkiran, 2000]. …

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