Is there an electronic banking (e-banking) revolution in the USA? Millions of Americans are currently using a variety of e-banking technologies and millions more are expected to come "online." However, millions of others have not or will not. This paper explores factors that affect the of adoption or intention to adopt three e-banking technologies and changes in these factors over time. Using a Federal Reserve Board commissioned data set, the paper finds that relative advantage, complexity/simplicity, compatibility, observability, risk tolerance, and product involvement are associated with adoption. Income, assets, education, gender and marital status, and age also affect adoption. Adoption changed over time, but the impacts of other factors on adoption have not changed. Implications for both the banking industry and public policy are discussed.
IntroductionElectronic banking (e-banking) technology represents a variety of different services, ranging from the common automatic teller machine (ATM) services and direct deposit to automatic bill payment (ABP), electronic transfer of funds (EFT), and computer banking (PC banking). The use of some e-banking technologies has grown rapidly in the USA, while others have been adopted more slowly [1].Both theoretical and empirical literature related to the general adoption of technology provides a framework to examine the adoption of e-banking technologies. If the promise of increased efficiency for the banking industry and increased convenience and service for the consumer is to be realized, then understanding the factors that influence the acceptance of new products will allow businesses to create a climate in which technological advances with real advantages can be embraced by a majority instead of just a few techno-savvy consumers.This paper applies the theories of technology acceptance and the diffusion of innovations to the adoption of three e-banking technologies: automatic bill payment, phone banking, and PC banking. Empirically, we examine whether and how the characteristics that describe the adoption of new innovations are related to consumer adoption of e-banking technologies. Unlike other studies, we include adoption as well as intentions to adopt in our measurement and we explore how these factors have changed over time.