Customers' adoption of banking channels in Hong Kong

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The study sought to investigate factors that influenced Hong Kong bank customers' adoption of four major banking channels, i.e. branch banking, ATM, telephone banking, and internet banking. Specifically, it aimed to focus on the influences of demographic variables and psychological beliefs about the positive attributes possessed by the channels. Design/methodology/approach -Based on extant literature on bank marketing and interviews with ten bank managers in Hong Kong, a questionnaire was designed. Then, in a large-scale survey by means of mall-intercept and telephone interviews, we successfully obtained data from 314 bank customers. Findings -Overall, ATM was the most frequently adopted channel, followed by internet banking and branch banking, and telephone banking was the least frequently adopted channel. Psychological beliefs about the extent to which a channel possessed certain positive attributes were more predictive of adoptions of ATM and internet banking than adoptions of branch banking and telephone banking. Demographic backgrounds were strongly associated with adoption of all banking channels except ATM. A major research implication is that the theory of reasoned action is less applicable when a behavior is habitual, such as the adoptions of branch banking and telephone banking.Research limitations/implications -The managerial implications are that telephone banking can be gradually phased out, whereas internet banking is becoming the dominant channel in the future. For branch banking, different marketing strategies should be adopted for those who are financially and cognitively less resourceful, and those who are wealthier but higher time cost. Originality/value -The value of the study for bank managers is that it provides an updated account of the banking behaviors of Hong Kong bank customers.

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