An empirical analysis of factors that influence the adoption of internet banking in China: A case study of Zhengzhou

Abstract

The developments in information technology and telecommunications have set in motion an electronic revolution in today's banking industry including China's banking sector. This in turn results new delivery channels for banking products and services such as Automatic Teller Machine (ATM), telephone banking, cable television banking, Personal computer banking (PC), and Internet banking. Internet banking has become one of the most popular banking adopted by consumers. The evolution of Internet banking benefits both the banks and their customers, and most banks have been using it as one of their distribution channels. Benefits of the internet banking to banks include generating additional revenue, improving customer service, extending marketing, and increasing cost saving. For consumers, Internet banking means convenience, but there is an increasing risk exposure to consumers in regard to internet-based services and the growing importance of offering consumer support services such as security to mitigate security risk exposure. This research investigates the factors that affect consumers' adoption of Internet banking services in Zhengzhou, China. These factors include personal factors, services quality factors, price factors, service product factors, situational factors, perceived risk factors, computer illiterate factors, etc. This research also provides an understanding of the specific factors that affect the consumers' decision whether or not to adopt Internet banking.