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Electronic banking in Finland

Consumer beliefs and reactions
to a new delivery channel
Received (in revised form): 27th September, 2001

Heikki Karjaluoto
is an assistant professor at the University of Oulu. His main research interests cover electronic delivery channels in banking,
specifically Internet and mobile banking, consumer behaviour in an IT environment and Internet research in general.

Minna Mattila
is a professor at the School of Business and Economics/Marketing at the University of Jyväskylä.

Tapio Pento
is a professor at the School of Business and Economics/Marketing at the University of Jyväskylä.

Abstract The increasing turbulence in the financial service industry sector since the
mid-1990s has created a whole new delivery channel for banking: Internet banking. The
purpose of this paper is to describe the current state of Internet banking in Finland and
to study consumer perceptions, beliefs and reactions to electronic banking in general
and Internet banking in particular. The results of this study indicate that bank managers
can, by knowing the basic beliefs consumers hold about Internet banking, create more
effective customer communication, improve software and target prospects better
concerning Internet banking. There is wide agreement that Internet banking will on the
one hand have a great impact on the whole bank market, and on the other hand will be
considered the most important retail banking delivery channel in the near future. A total
of 3,000 questionnaires was prepared and sent to MeritaNordbanken customers in
Finland. Using a mailed questionnaire with a response rate of 38.9 per cent, it was found
that 40 per cent of the Finnish consumers who responded to this survey were already
using Internet banking services. The results of this study provide interesting additions to
knowledge of electronic banking and consumer behaviour.

Keywords Electronic banking, Internet, Finland, customers, consumer behaviour,

Internet in 1998.1,2 More than half of the
Internet users reported using the Internet
Heikki Karjaluoto daily. Over 0.5 million citizens made
University of Oulu, Faculty of More than one-third of Finns use the electronic purchases on the Internet during
Economics and Industrial
Management Marketing,
P.O. Box 4600, FIN-90014
Internet every week and Finland is a world the last year. More than 40 per cent of all
Oulun yliopisto, Finland. leader in terms of electronic banking. Finnish households had a computer in
Tel: +358 40 5361 636;
Fax: +358 8 553 2906; Almost 2.5 million Finns, that is 63 per spring 1999 and 22 per cent had an Internet
E-mail: cent of those aged 15–74, had access to the connection, ie there were 107 Internet

346 Journal of Financial Services Marketing Vol. 6, 4, 346–361 # Henry Stewart Publications 1363-0539 (2002)

000 Internet customers and has the Wireless Application Protocol (WAP)- highest percentage of Internet users enabled mobile phones. 4. have similar online banking mobile phone. This technology even allows customers to this was expected to rise to 1.4 Leonia Bank an Internet television. A large Scandinavia.000. almost 0. a telephone. mobile phone Internet small or medium-sized companies and banking. Customers have calculated from its overall customer base. million Euro increase in its Internet based Solo-service system in 1996. the a unique encryption key and it is said that difference in the amount of online users is the security and privacy of the system are huge. In Finland.2 postal survey was carried out during the million times a month. The future trend will be the MeritaNordbanken has over 8.2 million by draw out money from ATMs with a the end of 2001. In July passwords. The concept since 1982. MeritaNordbanken. 346–361 Journal of Financial Services Marketing 347 . MeritaNordbanken has for some about 500 big corporations.3. the number of MeritaNordbanken’s manage all their payments with EMPS.000 Internet This paper next describes electronic customers in Summer 2000.6 but Finnish banking and reviews electronic banking banks have over a million of these per literature in order to gain understanding of month.000 Internet customers. It is expected that in the Finland.5 Comparing Finnish online access the service. Most of the summer of 2000 in order to obtain a basic # Henry Stewart Publications 1363-0539 (2002) Vol.000 inhabitants. For instance. has with an Internet connection. consumer perceptions and beliefs about has over 1. had just 100. the second largest bank service can be reached via a computer in Finland. time cooperated with mobile phone MeritaNordbanken is the market leader. is expected to change Internet grown steadily and the share of online banking totally. who use online services 3. MeritaNordbanken has for electronic banking. 460. business. The largest bank in Germany. their own user ID and a key code list to 27 per cent. Internet customers in Finland was 700. Since 1996 called EMPS (Electronic Mobile Payment the total number of online customers has Services).5 million movement from PC-based Internet individual customers. Each banking session has banking to. launched its Internet. manufacturers and teleoperators. superior to other systems. stake in Denmark and Sweden. for example.5 million banking to wireless. customers will be able to 2000. for example. company expects to have a 250–300 MeritaNordbanken. Electronic banking in Finland connections per 1. 6. The reason for the success of the This highly advanced technological MeritaNordbanken Solo-service is that the infrastructure partly explains the high bank has been developing the online Internet banking usage rate in Finland. but comparing the amount of MeritaNordbanken’s Internet Solo- online customers. for instance Leonia and future everything will be controlled via Osuuspankki. Osuuspankki Group.3 unnecessary all bank and credit cards and The adoption of online banking services personal online banking user IDs as well as is one of the highest in the world.1 Finland individual customers use the Solo-service seems to have an extremely good platform for paying bills. Competitor banks in mobile phone. institutions in Finland by the end of 2001. Its but the new Nordic bank also has a healthy cooperation project with Nokia and Visa.6–8 services. Deutsche Bank. the over four million bill payments every Ministry of Education aimed to make month and expected the amount to rise to Internet services available to all education six million by the end of the year 2000. Germany.4 million Internet customers in electronic delivery in banking. In three years the largest bank in Finland. The EMPS will make transactions is now 28 per cent. a GSM-SMS. or has 350.

It has been estimated.15 Electronic banking should mobile phone penetration is around 25 per be viewed as a high-order construct cent across Europe as a whole and is likely consisting of several distribution channels to exceed 100 per cent in some countries and it should be noted that it is in fact a by the year 2002. In ELECTRONIC BANKING addition. Most of the players in financial provision of information or services by a markets have recognised the fact that bank to its customers. Electronic banking banking is the newest delivery channel in many developed countries and there is a The adoption of electronic banking has wide agreement that the new channel will been a burning issue for financial 348 Journal of Financial Services Marketing Vol. (c) TV-based banking. From this point. and (e) PC via personal computer. The services online. funds via a mobile phone.10–12 According to Nehmzow13 given. A discussion of the findings follows Internet banking offers traditional players in the final section of the paper. In a very simple form. describes it as an electronic delivery channel for electronic banking connection between bank and customer in today is the Internet. Mattila and Pento understanding of consumer behaviour in have a significant impact on bank Internet banking and the results of this are markets. larger platform than just banking via the therefore. and the growth of order to prepare. via a computer. World Wide Web can be considered as one of the most significant advances in Consumer beliefs about Internet information technology. companies predict an explosion of mobile The combination of the Internet and the phone banking during the next few years.2. mobility (ie telephone banking. (b) delivery of all financial services.14 for everybody wants to be in it. manage and control electronic banking as a delivery channel financial transactions. 6. the meaning of time transfer and buying financial products or and place is disappearing in banking.9 telephone banking. in the banking sector the opportunity to add a low-cost distribution channel for their numerous different services. The main example. but as stated. electronic banking is a major game and television or mobile phone. other Internet access always and everywhere) is a financial institutions and telecommunication key driving force of Internet technology.2 In the near future it will banking. It many of the competitive advantages of has been argued that the information having a traditional bank branch network. revolution will fundamentally change the Electronic banking can be described in way banks and other financial institutions many ways. 346–361 # Henry Stewart Publications 1363-0539 (2002) . The following platforms can be necessarily the best platform for the distinguished: (a) Internet banking.10 Burr. but banks. A involves consumers accessing their banks Finnish Internet specialist estimates that by and accounts to undertake banking the year 2003 there will be over a billion transactions. because it neutralises so banking delivery channels in Finland. To date the Internet is mostly accessed (d) mobile phone banking. banking. because it involves provision of be possible to manage all bank transactions facilities such as accessing accounts. it means operate. Internet banking depends heavily on its development. At an advanced level. The two most common types used Internet technologies are developing at a in Finland are Internet banking and huge pace. 4. that computers are not Internet.Karjaluoto. Internet Internet connections. he continues that Internet The motivation for this study came from banking also creates a threat to banks’ the rapid development of electronic market share. over half of these via banking is called transactional online a mobile phone.

The last group — open book to other people via the non-users — was not using Solo-service in Internet. high costs. and then remailed in July 2000. By studying the knowledge of banking personnel and their beliefs of different types of consumers. new users and carry out transactions at a time of their non-users on the basis of their electronic convenience.23 reputation seemed to be important criteria The present study aims to describe the for the adoption of electronic banking. Scales to measure depend on how many people acquire and each of the beliefs were developed based retain Internet access. Furthermore. problems. However. studying the relationship between control over the banking activities and perceptions of technology. Almost all however. The resistance to change and lack of computer quantitative sample was targeted to match access were found to be the main barriers the demographics of MeritaNordbanken for the adoption of electronic banking by customers in Finland along dimensions Australian consumers. increased choice electronic banking can be obtained.000 among important aspects with which individual consumers in Finland. it is more likely that people who prepared and sent. security concerns. 346–361 Journal of Financial Services Marketing 349 . willingness to serve customers. Electronic banking in Finland institutions recently and the object of are familiar with computers and the various academic studies. Lack of MeritaNordbanken. argue that security concerns are respondents were customers of not among the greatest obstacles. Questionnaires were awareness of the service and benefits. consumers regarded accessibility. speed and the bank’s with computers. In of access to the bank. banking could reduce banking costs and for instance. 6.10. functionality and service at METHODOLOGY low price as important in Internet banking. Internet banking to other people.11. control and economy are questionnaire that was mailed to 3. 4. Jayawardhena and Foley11 maintain that The data were collected by means of a time. the intention to recommend offer further competitive advantage. and improved addition. Negative attitude towards the banking experience. adoption of electronic banking by some weight was also placed on consumers in Finland. usage first posted at the beginning of June 2000.16 services before people who are not familiar while price. demographic finances in electronic banking. Consumers are were first divided into three different becoming busier and hence are seeking to groups labelled old users. of electronic banking will fundamentally income and profession.20 1997 and does not use it now. privacy. education level.17–19 Karjaluoto and Mattila. most of the # Henry Stewart Publications 1363-0539 (2002) Vol. Security Old users had used Solo-services already in concerns arise from the use of an open the year 1997 and have used it since.21 The most on previous literature and existing important reason for adopting Internet.26 attitude towards technology itself.. Customers new valuable information concerning tend to value convenience.15–17 Internet will adopt Internet banking According to Athanassopuolos et al. The data customers are concerned.10 She says variables and Internet banking behaviour. A thousand security of Internet banking remains the questionnaires were mailed to each group.24.25 Measures of beliefs were based based services is actually each individual’s on the suggestions of Fishbein and Ajzen. most important issue for banks.10. that banks have recognised that electronic provides a clarification of factors affecting. scales.15 The development such as gender. The network: customers are afraid that their second group — new users — began using financial information might become an Solo-service after 1997. age.22 In Three types of questionnaires were general.

Multiple choice questions were major proportion of the respondents of used. PC. The remaining 1. The authors were satisfied service. Respondents were also asked detailed Demographics of the participants are questions about the use of the Internet in shown in Table 1. The second group consisted of new designing the survey instrument. attitudes and Responses were received from a total of intentions towards electronic banking (eg 474 participants (response rate 47.193. to 3=very cent). or answered only one or experience about using the banking two questions. services. factors influencing the first experiment: — possibility of paying bills at home RESULTS — attempt to save money After a follow-up. but 26 of these were payment. and their attitudes towards questionnaires were sent to three different technology. The first group was called non-users. The third scale.4 per –3=not at all important. important). ATM) etc. with the response rate. 346–361 # Henry Stewart Publications 1363-0539 (2002) . 6. the Internet and Internet target groups that differed in terms of banking. However.9 per answer by study participants. Respondents were asked to complete group consisted of long-standing users. the seven-point scale on each question or and as expected. While cent). filled questions varied little in terms of out wrongly. this group was the most proposition indicating its importance in eager to participate in the study.167 (mobile phone.9 per cent. A total of 344 Questions concerning consumer beliefs responses were received from this group were implemented on a seven-point Likert (response rate 34. 4. it was users who had had the user ID and ensured that instrumentation bias was password for less than three years. This was far beyond their about consumers’ demographic expectations and also a little above the characteristics. etc. which look at the effects of Non-user beliefs about electronic the individual difference factors on beliefs. the factors affecting the choice of As explained earlier in this study. Responses were received from some of the questions were found hard to 349 participants (response rate 34. Every question on the Internet banking knowledge and usage questionnaire focused directly or indirectly rate. expectations about the service. and bill payment mode acceptable.7 per recommend Internet banking to others and cent). environmental questions acceptable response rate by economic about their banking in general (eg the science standards.4 per cent). The results suggest three important demographics. bill between 20 and 30 to be normal and payment questions. questionnaires were used for data analysis. 350 Journal of Financial Services Marketing Vol. but discarded as they were either blank. Details of the questionnaire are given this group was currently not using in the next section. which suggest a rate distance from home to bank branch). banking mode. banking At the end statistical tests were conducted to determine if there is a significant Only a small proportion of non-users had relationship between intention to tested Internet banking services (3. Results will be presented in simple terms. electronic banking services. defining their beliefs.Karjaluoto. on a specific issue and it was ensured that they were not using electronic banking questions were brief and clear. a avoided. Mattila and Pento questions addressed were the same. banking. overall responses — attempt to save time and effort in bill received were 1. which was finally All questionnaires consisted of questions 38.

0 Missing 1 0.5 51.3 18.3 Total 1167 100.0 Marital status Married 680 58.3 39. The results are presented in Figure 1.7 per offers no personal service (mean 0.3 100. only 20. 346–361 Journal of Financial Services Marketing 351 .0 35-49 years 459 39.6 Cohabitation 138 11. interesting and was also asked in questions Internet banking was not considered concerning beliefs about Internet banking.45.71).0 88.0 43.8 11.6 31. nor incomprehensible.8 36.38.000 206 17.1 150. However.7 11.1 Total 1167 100.9 31.3 20.6 18.7 20.4 51. Electronic banking in Finland Table 1 Profile of respondents Demographic Frequency Percentage Valid Cumulative characteristics percentage percentage Gender Male 601 51.8 100.6 Worker 237 20.6 48. A cent rated it in the category strongly agree.000 201 17. While 29. 4.2 Divorced 137 11. the other end of the incomprehensible was –0.001–225. time consuming among non-users (mean Questions about beliefs were implemented –0.000 491 42.5 100. This finding is banking.001–150.0 Missing 38 3.2 Widow 70 6.0 100.9 per cent of the respondents The mean score for expensive was –0.0 It seems that non-users are also seeking cost seven-point scale also had some responses.4 48. the most remarkable of the non-users rated expensive in the belief about electronic banking is that it category strongly disagree.1 Total 1167 100.000 231 19.8 Total 1167 100.5 56.5 Single 136 11.6 11.0 Age Under 34 years 128 11.0 65 years and over 210 18.0 6.0 11.9 per cent As can be seen.4 50.4 69.6 82.0 Missing 6 0.5 Female 565 48.0 per cent rated this on seven-point Likert scales ranging from to category strongly disagree.7 82.46).0 18. savings via the Internet.0 100. therefore Internet It seems that a large number of non-users banking is not considered expensive by value and long for personal service in their Finnish consumers.1 58. total of 40. Internet strongly agree (3) to strongly disagree banking was neither regarded as expensive (–3).6 58.3 50-64 years 369 31.0 Missing 4 0. the mean score for agree.0 Household income Less than FIM100.0 Not at work 361 30.0 11.3 48. These # Henry Stewart Publications 1363-0539 (2002) Vol.2 17. A total of 30.0 Missing 1 0.5 Total 1167 100.5 More than 225.9 70. rated this belief into the category strongly Similarly. 6.5 100.0 Profession Leading position 565 48.

6. The mean score for belief Internet banking reveals interesting that Internet banking is insecure and findings.15 Non-users service on the website comprehensible. 346–361 # Henry Stewart Publications 1363-0539 (2002) . Mattila and Pento Expensive Time consuming 100 % 100 % 75 % 75 % 50 % 50 % 25 % 25 % 0% 0% –3 –2 –1 0 1 2 3 –3 –2 –1 0 1 2 3 No personal service Insecure 100 % 100 % 75 % 75 % 50 % 50 % 25 % 25 % 0% 0% –3 –2 –1 0 1 2 3 –3 –2 –1 0 1 2 3 Incomprehensible Only for nerds 100% 100 % 75% 75 % 50% 50 % 25% 25 % 0% 0% –3 –2 –1 0 1 2 3 –3 –2 –1 0 1 2 3 Difficult to use 100 % –3 = Strongly disagree 75 % 3 = Strongly agree 50 % 25 % 0% –3 –2 –1 0 1 2 3 Figure 1 Non-user beliefs about Internet banking findings suggest that non-users deem were not deemed as important as expected.4 per 352 Journal of Financial Services Marketing Vol. believed that Internet banking is quite The next graph considering security of secure to use. 4. Internet banking to be inexpensive and and the literature suggested. security concerns untrustworthy was 0.31. As can be seen.Karjaluoto. While 26.

usage problems with computers and the Similarly. It should be borne in banking was not considered frivolous by mind that most of the non-users do not new users (mean –2.2 per score of 2.01).45). Therefore. This score can be considered while some consumers are afraid of using very high.d. and Internet banking in particular. To summarise. 1. 346–361 Journal of Financial Services Marketing 353 . The following sections Internet banking was not regarded as show new and old user beliefs about expensive (mean score –1. The this crucial issue is needed. Furthermore. In addition.6 per cent rated this in the category strongly disagree.1 per cent reported general. more in-depth investigation of extremely important for new users. While consumers are per cent strongly disagreed with this becoming busier.23). which can be it allows the customer to isolate him or considered relatively high. new the Internet was considered neither users consisted of consumers with required expensive nor frivolous.d. Internet banking. It seems that important. A total of 37. 4.7 per cent).2 per have access to the Internet. major difficulties in using computers is not considered frivolous.57). s.29 fast and time-saving banking services. 6.6 per cent rated saves non-users were asked whether they had time in the category strongly agree. paying bills at home or at work is Thereby. Internet banking was rated Internet.29. 40.65). s. 2. Figure 3 Figure 2 shows that new users value free shows that consumers appreciate being free from time and place most with the mean from time and place constraints with a mean # Henry Stewart Publications 1363-0539 (2002) Vol.25). A total of 42.39. Finally.23. total amount of 48. user ID and password for Internet banking. 70. Difficulties in using computers faster than other modes of payment (mean and the Internet seemed to be important 1. remained Internet banking users. The mean score for Thus. Standard herself from other people. second important belief new users hold Internet banking was not regarded as about Internet banking is that of time only for computer nerds. However.17). low (1. A and standard deviation low (2.9 saving (mean 1. Internet is considered hard to use and This finding shows that banking in access. This fact is worth remembering Old users were asked why they had while discussing new users. Internet literature suggests. Also the standard deviation was Internet banking due to security concerns. It seems that the possibility of others trust the security of the service. it is important to have proposition. which has a heavy The belief that Internet banking offers impact on the adoption of Internet the opportunity not to meet bank banking.24. Internet banking is not used because difficulties in usage was 0. a total of 18. these results indicate that New user beliefs about electronic above all new users value speed and banking freedom in Internet banking. However. (category strongly agree). A total of 54. Electronic banking in Finland cent strongly agreed. strongly disagree. almost 22 per cent personnel and other customers was in the ranked usage problems in the category category strongly disagree (61. Banking via As mentioned earlier in this study. deviation was 2.9 per cent cent strongly disagreed.45. Almost 50 per cent barriers for Internet banking as the strongly agreed. the cent put it in the category strongly disagree. Standard deviation rated free from time and place as very was relatively low (2. The mean score was –1. Specifically. it was also pointed out Old user beliefs about electronic that most of the consumers in this segment banking were not using Internet banking services regularly.

speed as very important.36. bill payment via the 354 Journal of Financial Services Marketing Vol.Karjaluoto. Furthermore. 346–361 # Henry Stewart Publications 1363-0539 (2002) . 4. Moreover. The standard deviation for of 70. Standard bill payment was considered to be faster deviation was very low at 0. Mattila and Pento Fast Expensive 100 % 100 % 75 % 75 % 50 % 50 % 25 % 25 % 0% 0% –3 –2 –1 0 1 2 3 –3 –2 –1 0 1 2 3 Frivolous Free from time and place 100 % 100 % 75 % 75 % 50 % 50 % 25 % 25 % 0% 0% –3 –2 –1 0 1 2 3 –3 –2 –1 0 1 2 3 No need to face personnel Service same standard 100 % 100 % 75 % 75 % 50 % 50 % 25 % 25 % 0% 0% –3 –2 –1 0 1 2 3 –3 –2 –1 0 1 2 3 Saves time 100 % 75 % 50 % –3 = Strongly disagree 3 = Strongly agree 25 % 0% –3 –2 –1 0 1 2 3 Figure 2 New user beliefs about Internet banking score of 2.0 per cent of the respondents rated this factor was low at 1. for payment (eg at a branch or via ATMs).16.8 per cent strongly The mean score for this was 2.45. 6.98. example only 1. A total disagreed. In this via the Internet than via other modes of question consumers were very united.

6. A total of 46. # Henry Stewart Publications 1363-0539 (2002) Vol. 346–361 Journal of Financial Services Marketing 355 . score 0. Electronic banking in Finland Fast Cheap 100 % 100 % 75 % 75 % 50 % 50 % 25 % 25 % 0% 0% -3 -2 -1 0 1 2 3 -3 -2 -1 0 1 2 3 Frivolous Free from time and place 100 % 100 % 75 % 75 % 50 % 50 % 25 % 25 % 0% 0% -3 -2 -1 0 1 2 3 -3 -2 -1 0 1 2 3 Elegant and appreciated Service same standard 100 % 100 % 75 % 75 % 50 % 50 % 25 % 25 % 0% 0% -3 -2 -1 0 1 2 3 -3 -2 -1 0 1 2 3 No need to face personnel 100 % 75 % 50 % –3 = Strongly disagree 25 % 3 = Strongly agree 0% -3 -2 -1 0 1 2 3 Figure 3 Old user beliefs about Internet banking Internet was considered cheaper than other Internet banking is always of the same modes of payments.10).80).1 per standard also had some importance (mean cent rated it very important. No need to face bank’s The belief that customer service in personnel or other customers (mean –2. 4.

4.37 0.21 1065 ATM* –0. there are general and electronic ID cards were significant differences between non-users.44 1.89 2. To sum up. Personal service was found to be most important for non- Consumer beliefs about technology in users (mean score 2. As among new users than old ones (mean revealed by the table.22 1.03 1028 Automates in general –0.90) hold about Internet banking. whereas non-users line with the past literature. technology than new users and non-users. disliked e-mail and the Internet. Roughly speaking. old users seem to –2.16).95 1.13 0.14 986 Internet –1. current users do not have more positive beliefs about see their banking as elegant.24).09) had more positive beliefs about technology were all considered unimportant. to rate teletext. past experience has a relatively high effect ATMs were mostly disliked by non-users on beliefs that different customer groups (mean –0.30 1031 Electronic ID card –0.70 1043 Computer –0. Mattila and Pento appreciation and elegance of Internet bank new users and old users. and non-users (mean strength of consumers’ product beliefs is score –0.79).38 0. followed by new users As suggested in the literature. old users liked bank and credit Thereby these findings about beliefs are in cards (mean score 1.Karjaluoto. (mean score 1. Surprisingly.79 1.60 –0.31 0. However. or playful. There are a electric ID cards.90 1.73 0. It seems that did not find them so positive (mean 0.30). the (mean score 0.02 981 Personal service 2.30 1.37).07 1.00).59 0. Automates in frequency data.13 0.14 1020 E-mail –0. affected by past experiences with the target Consumers’ opinion of computer was object.19 0. Table 2 Technology perceptions Consumer beliefs about Non-users New users Old users Total different objects (–3 to 3 ) Mean Mean Mean Mean N Mobile phone –0.03 0.27 Beliefs about product attributes parallel: non-users’ mean score was –0.16 1.44). This survey also asked about consumers’ The final three questions asked consumers perception of different technologies. non-users number of notable outcomes in the liked teletext the most. technology the more positive beliefs he or Playfulness was considered even lower she seems to hold about an object.31 902 Notes: *ATM = Automatic teller machine No = Number of responses Dislike –3 –2 –1 0 1 2 3 Like 356 Journal of Financial Services Marketing Vol. 6.77). Consumers are using Internet To begin with mobile phones: old users banking mostly due to time and money seem to have the most positive perception savings. automates in general and Results are shown in Table 2. users general and Internet banking also placed weight on personal service. 346–361 # Henry Stewart Publications 1363-0539 (2002) . whereas users found them positive. users (mean –2.91 1086 Text television 1.46.46 1.19).59 0. Non-users (mean 0. the findings are largely in line with the more familiar a consumer is with previous findings among new users. and playfulness (mean –2. appreciated.77 1. or consequences tend to be stronger when new users’ 1.16 0. mostly liked by old users. These than non-users did.08 and old users’ 2. As expected.97 0.15 1.12 0.17 1017 Bank and credit cards 0.90 2.14 1. based on actual use of the product. As can be seen.55 1.08 2. Further.07.

124 Age 10. chi-square is a Table 2.579 be argued that not all non-users have Age 26. As Profession 17. new users chi-square (2-sided) and old users. 6.307 negative perceptions of computers and the Income 7. 4.362 6 0. and perceptions of non-users. The analysis is shown affecting Internet banking.8 to the category neutral.008 Profession 12.798 Age 11.002 Education 7. observed data with data expected to be To be more precise. As revealed by in Table 3.772 9 0. it may Marital status 1. variables from Table 2 was constructed.025 Income 17. 24.007 expected.266 Internet as might have been assumed.525 6 0. Electronic banking in Finland To conclude. Table 3 Chi-square test: Intention to recommend As Figure 4 clearly reveals. Non-users 24. computer and Internet beliefs statistical test commonly used to compare have an impact on Internet banking usage.049 Statistical tests. chi-square tests were conducted to Marital status 1. In general.636 6 0.153 6 0.669 9 0.014 3 0. Thus.000 respondents who were willing to Income 3.054 recommend Internet banking to others and 90 80 70 60 50 % 40 Old users 30 20 New users 10 0 Dislike Neutral Like Non-users Figure 4 Computer technology perception # Henry Stewart Publications 1363-0539 (2002) Vol. Statistically significant p-values were found These were computer perception and among non-users between age and Internet perception.002).283 computers and the Internet in general. a sum variable of two obtained according to a specific hypothesis.255 6 1.635 6 0.436 6 0.233 determine the relationship between the Education 0.750 3 0. 346–361 Journal of Financial Services Marketing 357 . analysis and findings Old users Finally. Figure 4 depicts intention to recommend (p=0.894 9 0. consumers’ Internet banking and demographics perception of computers and the Internet Pearson df Sig varies heavily between non-users.741 Profession 12.1 per cent of value p value the non-users belong to the category like. new users and especially old users New users have more positive perceptions of Marital status 5.970 3 0. Education 14.632 6 0. Surprisingly.360 6 0. belief evaluation and three characteristics of non-users. new users and between profession and intention to old users about this new variable (technology perception). new rating seem to be important factors users and old users.

4. correlation was also found among new p50.349.01) and old users p50. Therefore.05). computer technology is negatively correlated with age (r=– perception seems to have a great impact 0. because many studies have non-user has.Karjaluoto.111. It seems that the decreases.05). p50.746 6 0. Among old users. recommend.11 income and intention to recommend. non-users’ intention to consumer has the more likely he or she is recommend seems to depend on their to recommend Internet banking. As among old users. In Finally.502 intention to recommend is positively p50.134.187. In Interestingly. No statistically recommend Internet banking and significant p-values (p50. non-users: high correlation was found p50. p50. p50. users (r=0. the more Interpretation of these results is as positive technology perceptions a follows. The results (see Table 4) Among non-users.564.007). new users with higher conducted to determine whether there was incomes are more likely to recommend a correlation between intention to Internet banking. 6. Mattila and Pento recommend (p=0. Negative correlation (age perception value p value and marital status) is explained by the fact Non-users 45.05).05). and negatively with age (r= between computer technology perception –0. p50. education Technology chi-square (2-sided) and occupation. These findings were quite younger and the better occupation the predictable. computer technology perception In addition.01). Secondly.05) and marital status technology perception and intention to (r=–0.133. the highest correlation was other words.01). the more likely he or she is reported correlation between positive to recommend. the more Table 4 Chi-square test: Intention to recommend likely they are to recommend. stated.01).000 Old users 60.168. Among new users. educational and occupational level.234. and profession (r=0.285 6 0.05) were found computer technology perception.223. First of all.112.000 that while age variable increases (ie a New users 95. different p-values more reliable results might be obtained courtesy of different statistical than just measuring perceptions on one measurements are presented below. 346–361 # Henry Stewart Publications 1363-0539 (2002) . Internet banking and technology perception new users’ intention to recommend Pearson df Sig depends on their income level. p50. the more educated and the better occupation they have. To begin with p50. single scale. intention to recommend Internet banking To sum up. and intention to recommend (r=0.000 person is older) intention to recommend 358 Journal of Financial Services Marketing Vol. another chi-square test was this category. p50. and profession (r=0. High (r=0. No other high correlation on intention to recommend Internet was found among old users.141. This same trend seemed to correlated with household income continue in the two other groups. intention to illustrate a strong relationship between recommend Internet banking is positively computer technology perception and correlated with education (r=0. intention to recommend. correlations between refers on the one hand to consumers’ intention to recommend Internet banking perceptions of computers and on the other and demographic characteristics were hand to their perceptions of the Internet. income and profession. It calculated using Spearman’s rho.809 6 0. and negatively correlated with (r=0. Another significant p-value attitudes towards Internet banking and was found among new users between education. banking to others. education (r=0. p50.01).01) between computer age (r=–0.01). As the is assumed that using this sum variable reader might notice.

As Figure 5 clearly reveals. new users were not likely to recommend it and the lowest among old users (r=0. In addition. hold related to not likely to recommend and about electronic banking. these results are presented in DISCUSSION simple terms in Figure 5.35. especially vice versa. 4. 6.56. beliefs different consumer types. As mentioned at the beginning of this consumers belonging to the neutral study. to other people. Non-users and retail banking over the next three to five # Henry Stewart Publications 1363-0539 (2002) Vol. new users and old users. This paper provided new of old users and almost 40 per cent of new basic understanding of the adoption and users belonging to the computer use of the Internet as a new electronic technology category like reported very delivery channel for the banking industry. over 60 per cent Internet banking. p50. Bar colours depict the degree presented has been the description of of recommendation ranging from not likely electronic banking in Finland and the to very likely. electronic delivery is forecast to category were not eager to recommend become a major distribution channel for Internet banking to others. For instance. Additionally. likely recommendation. p50. Electronic banking in Finland % Non-users % New users 100 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Dislike Neutral Like Dislike Neutral Like % Old users 100 90 80 70 60 Not likely 50 Not very likely 40 Quite likely 30 Very likely 20 10 0 Dislike Neutral Like Figure 5 Technology perception: Intention to recommend Internet banking cross-tabulation found among new users (r=0. such as dislike of computer technology is strongly non-users.01). 346–361 Journal of Financial Services Marketing 359 . The point of departure of the research neutral.01). X-axis displays consumers’ technology perception (dislike. like).

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