Generations X and Y's internet banking usage in Australia
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Joo-Gim Heaney has a PhD in Business Administration (Marketing) from Florida State University, and a BEc and LLB from Sydney University. She is a senior lecturer at the University of Notre Dame, Australia. Her areas of research focus on marketing education, professional services, marketing to Asian consumers, and marketing by non-profit organisations. She has published in the International Journal of Bank Marketing (with a Highly Commended Award), International Journal of Nonprofit and Voluntary Sector Marketing, Psychological Reports, and Southeastern Journal of Music Education and in numerous conferences including the Association of Marketing Theory and Practice, North American Case Research Association, The Academy of Marketing Science, and US Association of Small Business and Entrepreneurship.
Abstract This paper contributes to banking services literature by providing empirical research on internet banking behaviour and perceptions of Generations X and Y in Australia. More than 350 respondents aged 18 and above revealed that surprisingly, less than half of the mostly Generations X and Y respondents use internet banking. More Generation X are internet banking users compared to Generation Y, but Generation Y users use internet banking more frequently, use more virtual products, and have used internet banking for a longer time compared to Generation X users. Internet banking users perceive their banks as providing higher quality services compared to non-internet banking users. A large majority of non-internet banking users never tried internet banking at all. Security and privacy concerns were cited. Based on these findings, it can be recommended that banks still need to provide both internet- and non-internet-based means of banking to their younger consumer segments. The banking industry needs to address concerns about security, trust and ease of use to persuade more of Generations X and Y to use internet banking. Journal of Financial Services Marketing (2007) 11, 196–210. doi:10.1057/palgrave.fsm.4760052 Keywords Generations X and Y, consumer banking behaviour and perceptions, Australia, internet banking usage
INTRODUCTION Generations X and Y are the ‘younger’ generations compared to the Baby Boomer generation and much has been written about their technological preferences and usage. In relationship to the consumer retail financial services industry, little or no empirical
Correspondence: Joo-Gim Heaney, School of Business, The University of Notre Dame Australia, Sydney Campus, 104 Broadway (PO Box 944), Broadway, NSW 2007, Australia; Tel: +02 8204 4155 Fax: +02 8204 4403 E-mail: [email protected]
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Journal of Financial Services Marketing
research has, however, been conducted into their attitude toward internet banking, with the one exception of LIMRA International’s 2002 Report.1 Similar to LIMRA’s 2002 Report, most research on banking services has, however, focused on the large competitive US banking markets.2,3 This paper provides a much needed contribution to research on financial services by providing a
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