The Relevance of Age Categories in explaining Internet Banking Adoption Rates and Customers' Attitudes towards the Service

This paper focuses on customers’ attitudes towards internet banking (IB), with particular reference to generational differences vis-à-vis such service. These factors are important for banks to project how demand is likely to develop over time. After modelling the IB adoption decision across a sample of countries, we conduct a questionnaire amongst bank customers who include users and non-users of IB and set up focus groups, each comprising participants from a specific age bracket. Whilst generational factors do not emerge as significant in the regression models, the questionnaires and focus groups suggest that generations differ in their attitudes towards IT-delivery systems and choice of preferred delivery channels. In this way banks have to constantly ensure that their online product mix is appropriate to cater for such distinct needs, especially in view of the increasing competition from non-bank entities in areas such as payments services.