empirical analysis on internet banking adoption in manila
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  • 1. An Empirical Analysis of Internet Banking Adoption in Manila<br />A Thesis<br />Presented to<br />The Management of Financial Institutions Department<br />College of Business<br />De La Salle University<br />By<br />Garcia, Anthony<br />Jung, Sangbin<br />Kim, Taejin<br /> <br />August 2011<br />CHAPTER 1. INTRODUCTION TOC o "1-3" h z u <br />1.1Background of the Problem3<br />1.2 Problem Statement12<br />1.3 Objectives13<br />1.4 Hypotheses14<br />1.5 Significance of the Study16<br />1.6 Scope and Limitations17<br />CHAPTER 2. REVIEW OF RELATED LITERATURE<br />2.1 TOC o "1-3" h z u Previous Studies19<br />CHAPTER 3. FRAMEWORK<br />3.1 A Priori Expectations23<br />3.2 Conceptual Framework27<br />CHAPTER 4. METHOLODGY <br />4.1 Research Design28<br />4.2 Sampling Design28<br />4.3 Data Description and Collection Method29<br />4.4 Data Analysis Methods32<br />CHAPTER 5. RESULTS AND DISCUSSION33<br />CHAPTER 6. CONCLUSION51<br />CHAPTER 7. RECOMMENDATION53<br />BIBLIOGRAPHY57<br />APPENDIX…..…………………………………………………………………….……….62<br />CHAPTER 1<br />I N T R O D U C T I O N<br />1.1 Background of the Study<br />E-banking is called Internet banking, online banking or PC banking. E-banking may include ATMs, wire transfers, telephone banking, electronic funds transfers and debit cards (Mobarek, 2007). <br />The evolution of the e-banking industry started as early as the 1970s when banks began to look at e-banking as a way of substituting some of their traditional bank functions. The first automated teller machine (ATM) was invented by IBM and later introduced in December 1972 at Lloyds bank in the UK (Schneier, 2004). Subsequently, in the 80s, Citibank offered PC-banking services amidst popularization of the personal computer (Shapiro, 1999). Nevertheless, PC banking is difficult to use and expensive to maintain. It only succeeded in the business field. Internet banking was introduced in the mid-90s due to the popularization of the Internet and it changed the way of banking. Internet banking was made possible by the creation of Web browsers. With the web browser, consumers do not have to purchase additional software, store any data on their computer or be constrained by the software updates. All transactions take place on the server of a bank through the Internet. Clients access the bank's Internet banking website, and just log in their account then they can use their Internet banking service (Kolsaker & Payne, 2002; Dong-Her et al, 2004). Moreover, Wells Fargo is the first bank to introduce and establish the virtual bank (DeYoung et al., 2007). Now in the 21st century, almost all banks in EU and US provide Internet banking services (DeYoung et al., 2007; Hernando & Nieto., 2007).<br />A few existing empirical studies have already proven that Internet banking provides many benefits for both banks and their clients. Table 1, containing previous researches done on the performance of Internet banks, indicates that online services have positive impact on the bank’s financial performance. <br />Table 1: International Studies on Internet banking and Performance (Malhotra and Singh, 2009)<br />StudyCountry andsample sizeanalyzedSamplePeriodResults1Furst et al.(2000a, 2000b,2002a, and 2002b)U.S., 2,517 National BanksQ3, 1999Internet banks outperformed non-Internet banks in terms of profitability. Offering Internet banking did not have a statistically significant impact on profitability.2Hasan et al. (2002)Italy, 105 banks1993-2000With respect to almost all performance variables, the Internet group outperformed the non-Internet group. Highly significant relationship between offering of Internet banking and bank profitability.3Hernando and Nieto (2005)Spain, 72 commercial banks1994-2002Performance of multi-channel banks was better in terms of ROE, higher commission income and lower general expenses. The adoption of the Internet as a delivery channel had a positive impact on banks’ profitability measured both in terms of ROA and ROE and no statistically significant impact on risk.4DeYoung et al.(2007)U.S., 424 Internetbanks and 5175 non-Internet banks1999-2001Click and mortar banks became more profitable (ROA and ROE) relative to their brick and mortar rivals between 1999 and 2001. Internet adoption improved bank profitability, particularly through increased revenues from deposit service charges.<br />In traditional banking, a greater amount of capital investment is required to maintain the distribution system. Therefore, the operating cost of traditional banks is relatively high compared to Internet banking, because Internet banking uses the Internet as the medium which is deemed the cheapest distribution channel (Polasik et al., 2008). In addition, traditional banks allot capital for labor and infrastructure costs. On the other hand, Internet banking acquires savings which allows them to offer higher interest rates and lower lending rates and service charges so recently the trend for traditional banks is to encourage their customers to do their banking online. Polatoglu and Ekin (2001) reported that the average cost of transaction with regard to Turkish Internet banking is $0.10, compared to the $2.1 for a teller. Also, web-based banking services give banks the opportunity to gather customer data and behavior so that a cross-selling can be easily implemented.<br />Most consumers look at Internet banking as convenient and efficient because they do not have to go to the bank, fall in line and wait to be called. Moreover, they are not constrained by region or time because they can do banking transaction as long as they have a PC that is accessible to the Internet (Lassar, 2005). Furthermore, other factors like sense of complete control over one’s account, speed of transactions, higher interest rate and lower lending rate are also important to consumers (Black et al., 2001).<br />Though Internet banking proved to be beneficial, there are still obstacles to the adoption of Internet banking. Primarily, the lack of computers and Internet access appear to be the most critical problem (Black et al., 2002). In the case of the Philippines, only few areas are allowed for high-speed and wireless Internet connections since these are concentrated only in certain areas within major cities (Lallana et al., 2009). BBC News reported in an article that based on the ranges in world broadband prices, Sweden's megabit-per-month entry-level connection was USD10.79 (P500) in the past decade while the Philippines just crossed the megabit barrier during this time (BBC News, 16 July 2007). Furthermore, people also have security issues on doing transactions via the Internet. Most of the people’s concerns include cases of hacking, credit card fraud, and scam, which have been found to affect the decision to adopt Internet banking (Sathye, 1999; White and Nteli, 2004; Gerrard et al., 2006)<br />There are other factors that predict the adoption status of Internet banking which include socio-demographic characteristics. Based on previously conducted studies, income level and other demographic variables have been shown to be significant predictors (Karjaluoto et al., 2002; Im et al., 2003; Flavián et al., 2006). Low educational attainment or unavailability of information limits people’s knowledge about Internet banking (Nielsen, 2002; Im et al., 2003; Pikkarainen et al., 2004; Lassar et al., 2005; Lee et al., 2005; Gerrard et al., 2006). <br />The Philippine Context<br />The state does not only supervise banks, but with the advent of central banking, it also controls the banks’ operation. In the Philippines, the Bangko Sentral ng Pilipinas (BSP) supervises the nation’s banking system. During the Asian financial crisis of 1997, the banking industry was relatively undamaged, and asset quality has been improving since 2001. In July 2005, non-performing loans reduced into the single digits (9.3 percent), half the peak level (18.8 percent) recorded in October 2001.<br />As of February 2009, there are 21,494 BSP supervised/regulated banks, consisting of: 4,284 universal and commercial banks, 1,318 thrift banks and 2,141 rural and cooperative banks. Three banks are owned or controlled by the government: Al-Amanah Islamic Investment Bank of the Philippines, Development Bank of the Philippines, and Land Bank of the Philippines. Foreign banks compete with local banks and are active in asset management, investment banking, foreign-exchange and derivatives trading. Though foreign banks have a small market share and branch networks are not that extensive, customers are still attracted by their good reputation and expertise.<br />In the early 1980s, the Bank of the Philippine Islands (BPI),Citibank , Philippine National Bank, and other large banks pioneered e-banking creating a change in the world of banking in the country. Interbank networks in the country like Megalink, Bancnet, and BPI Expressnet were among the earliest and biggest starters of ATM (Automated Teller Machine) technology. BPI launched its BPI Express Online in January 2000. Aside from this, other forms were introduced such as phone and mobile banking. The most common online financial services include deposits, fund transfers, applications for new accounts, Stop Payment on issued checks, housing and auto loans, credit cards, and remittances (Leuterio and Estepa, 2009)<br />By the end of June 2004, 57 banks (41 domestic banks and 16 foreign banks) provided Internet banking services, 36 of which were universal and commercial banks and 21 were thrift banks and in February 2009, this number grew to 92. Because of these, customers were able to access banking services from different parts of the country all day and enjoyed conveniences and lower transaction costs. However, there exist some obstacles in the wide use and implementation of e-banking. The Philippines has been reported as one of the lowest GDP per capita among the Southeast Asia (IMF, 2011) (Figure 1). Most users in the country who access Internet banking<br />Figure 1 : GDP per capita in Southeast Asia 2010 (in billions $)<br /> Source: IMF (2011)<br />come from urban areas. The innovation has not been widespread since only those who have Internet connections are able to enjoy it. Pure e-banking has not yet fully replaced the traditional way of banking in the Philippines. Internet-only banks do exist as the BSP has already licensed one pioneer Internet-only bank in the Philippines. However, today's Internet banking is more like bricks-and-clicks, the incorporation of e-banking into the more traditional banking structure (Jimenez and Roman, 2005).<br />Security is also a major concern although the technology to protect transactions is already pretty good and keeps getting better. For BSP, this is a major reason for regulating e-banking activity both from the perspective of prudential regulation as well as consumer protection (BSP, 2009). The percentage of households with a computer and Internet access still falls below the Asia average, PC penetration is estimated at 1.9 for every 100 persons and 71% of the Filipinos are accessing Internet through PC cafes (Yahoo-Nielsen, 2010). And according to a survey by Nguyen (2011) (refer to Table 2), the number of visitors to online banking websites rose by double-digit figures over the 12 month period from January 2010 in all five countries, including a 72 percent rise in Indonesia. However, in this list, the Philippines still had the lowest number of Internet banking users (Nguyen, 2011).<br />Table 2: Internet banking users in Southeast Asia<br />Online banking category visitation by marketJanuary 2010 vs January 2011Total Unique Visitors2010 January2011 January% ChangeMalaysia2,360,0002,746,00016%Vietnam701,000949,00035%Singapore779,000889,00014%Indonesia435,000749,00072%Philippines377,000525,00039%<br />Source: Nguyen (2011)<br />The benefits of e-banking in the Philippines can be maximized through the benefit of Overseas Filipino Workers (OFWs). OFWs send large amounts of remittances to their relatives in the Philippines. Internet banking could make the remittance process a lot more convenient and faster. In addition, the remittance fees become minimized. Therefore, Internet banking must be made available to OFWs and banks must take advantage of their needs and provide these services abroad. <br />1.2 Problem Statement<br />This study is to evaluate the phenomenon of Internet banking adoption on the perspective of Filipino Internet users. Specifically, the following questions would like to be answered:<br />a. Does individually perceived security able to increase the probability of using Internet banking services?<br />b. Does Internet experience affect usage of web-based banking?<br />c. Does exposure to Internet banking advertisement increase the likelihood of Internet banking adoption?<br />d. Does the use of other banking products, such as mobile banking and debit and credit cards increase the likelihood of opening an online account?<br />e. Does the type of Internet connection used increase the probability of using Internet banking?<br />f. Do demographic characteristics such as age, gender, income, educational attainment and work-related attributes determine the adoption status of Internet banking?<br />1.3 Objectives <br />This paper seeks to identify empirically the factors underlying the decision to adopt Internet banking in the Philippines and the barriers to adopting Internet banking will be particularly noted and explained. Consequently, the results that will be obtained in this study can be of assistance to banks that operate in the Philippines. The improvement of banks and the strong emphasis on Internet banking are considered necessary in the adoption of Internet banking in the Philippines. This study could provide banks with important insights on the target market segment, security issues and strategies that will help foster the acceptance of Internet banking.<br />Also, this study aims to investigate the perception and behavior of Filipino consumers on Internet banking. The knowledge of Filipino consumers on Internet banking will be evaluated to determine their likelihood to adopt Internet banking in the future. <br />Finally, this study will also analyze the impact of Internet banking on the banking industry and economy in the Philippines. The future of Internet banking in the country is important as Internet banking could pave the way for the economic progress. <br />1.4 Hypotheses<br />The factors which are hypothesized to influence the individual’s decision to adopt Internet banking are divided into six main categories: (a) Perceived security, (b) Internet experience, (c) Marketing exposure, (d) Use of other banking products, (e) Type of Internet connection used, (f) Demographic characteristics.<br />a. Perceived security<br />Ho: The individually perceived security of Internet transactions has no effect on probability of using Internet banking services.<br />H1: The higher the individually perceived security of Internet transactions, the higher the probability of using Internet banking services.<br /> <br />b. Internet experience<br />Ho: Familiarity with the Internet medium, application of Internet at work and prior experience with online transactions have no effect on the usage of Internet banking.<br />H1: Familiarity with the Internet medium, application of Internet at work and prior experience with online transactions have a positive effect on the usage of Internet banking.<br />c. Marketing exposure<br />Ho: Exposure to Internet banking advertisements has no effect on likelihood of Internet banking adoption.<br />H1: Exposure to Internet banking advertisements increases the likelihood of Internet banking adoption.<br />d. Use of other banking products<br />Ho: Use of other banking products, such as mobile banking, as well as debit, credit card has no effect on odds that a respondent opens an online account.<br />H1: Use of other banking products, such as mobile phone banking, as well as debit, credit card raises the odds that a respondent opens an online account.<br />e. Type of Internet connection used<br />Ho: The type of Internet connection has no effect on probability of using Internet banking.<br />H1: The type of Internet connection increases the probability of using Internet banking.<br />f. Demographic characteristics<br />Ho: Demographic characteristics, such as age, gender, income, educational attainment and work-related have no effect in determining the adoption status of Internet banking.<br />H1: Demographic characteristics, such as age, gender, income, educational attainment and work-related attributes jointly determine the adoption status of Internet banking.<br />1.5 Significance of the Study<br />As e-banking is considered an important innovation in the field of banking and finance, this study has major implications in the Philippine setting. First, as the adoption of Internet banking in the country is not that prominent compared to other countries, this study can help banks in thinking of ways to promote Internet banking. The information this study would provide regarding market segmentation, perceived security and banking products can improve the management of Internet banking. As a result, this may increase the adoption status of Internet banking in the country. The analysis of bank's financial statements related to the adoption of Internet banking will suggest on how banks can operate at lower costs. Second, with the knowledge of the problems encountered by users, banks can improve their Internet banking services. Finally, it contributes to the e-commerce industry of the Philippines by enhancing performance and having greater economic efficiency and more rapid exchanges among financial markets. <br />In addition, as the development of Internet technology is getting faster and many people all over the world are already experiencing Internet banking, this study provides Filipinos with ways on how to maximize the benefits of Internet banking. <br />1.6 Scope and Limitations<br />This study focuses on studying the Internet banking adoption status in the Philippines. The sample population was obtained in the City of Manila since it has a vast geographic area and consists of a wide variety of people as it is the capital of the country. In order to determine the situation of Internet banking adoption, the research analyzed the effect of variables such as perceived security, Internet experience, marketing exposure, use of banking products, type of Internet connection used, and demographic characteristics. The respondents answered questionnaires and were interviewed to determine the significance of each variable. <br />However, there are always inevitable limitations in every research. This research also faced the same issues which include improper time management, high cost of research, the difficulty in obtaining information required and the unpredictable nature of data collection. It is difficult and expensive to collect information especially when the respondents are reluctant to disclose the information. The cooperation of respondents is very important, since they provide the data needed in research. It is noted that some respondents showed lack of enthusiasm and skepticism during the data collection process since it deals with personal financial information.<br />There were also problems when designing the questionnaire; nevertheless, the researchers were able to come up with a questionnaire that combines both open-ended and close-ended questions to obtain accurate responses from respondents. The open-ended questions were used to boost the close-ended questions by supporting and substantiating them. <br />Another major limitation of this research was the inadequacy of knowledge that most respondents had about Internet banking, mobile banking and Internet security. It was observed that the people are not thoroughly aware of Internet banking and Internet security. This can lead to irrelevant results since the respondent does not have enough knowledge on the subject matter. Finally, not all assumptions made were right and this leads to different conclusion and recommendations compared to previous studies.<br />CHAPTER 2<br />R E V I E W O F R E L A T E D L I T E R A T U R E<br />2.1 Previous Studies<br />Due to the fact that our research is highly based on experimental methods, it is better that the characteristics of different countries which use Internet banking be defined first. Using notable texts, it was found that developed countries tended to provide Internet and electronic banking. <br />Internet banking first flourished in big and successful banks located in urban settings. Profitability and efficiency were the main reasons for choosing to adopt Internet banking as shown by statistical evidences in the study of Furst et al. (2002) since there was a strong correlation between the high profitability of banks and their time usage of Internet banking.<br />In a study clearly depicting the Internet banking usage in Europe, it was stated that banks in the EU showed commonality because of their business method of both the Internet banking system and the orthodox banking system. It was mainly stated that banks in Europe tried to exploit not only the Internet banking system, but also equally the orthodox banking system, because it was believed that being experienced on both fields put certain banks ahead than others. For example, banks that started using Internet banking systems also moved on to other techniques such as telephone banking, financial advisors, and such. Since most successful banks in Europe use this method, it is very rare to see banks that only use the orthodox way of banking (Claeys and Arnaboldi, 2007).<br />Due to the efficiency of the Internet banking system, Internet banking does not only help the successful, but also the people who are rising to success. To back this statement, Jimenez and Roman (2005) stated that electronic banking services, which are considered more efficient and cheaper, should be made available to microfinance clients as well. The increased convenience and lowered costs brought about by e-banking should also benefit the poor and low-income clients. Jimenez and Roman (2005) also stated that rivalry of Internet banking between banks may also help the poor and the low-income clients because this conflict will force the Internet banking system to improve and become more efficient for the public. <br />Furthermore, the research of Fuentes et al. (2006) stated that decisions such as using Internet banking in banks were usually decided by the financial status and size of the banks that are going to use the system. He further explained that the bank membership to a holding company speeds up the Internet banking adoption but this was not the case so the adoption decision was taken at the bank level.<br />Advantages of using Internet banking <br />Numerous studies showed that there were several advantages to Internet banking. One advantage was that Internet banking created cheaper means of banking for both the customers and banking companies. The other advantage was that the banking companies would not need to have a lot of workers to sort out the money of their customers, since the online banking system allowed the money to be circulated online. It is also very convenient for the customers since they can do banking in places that have Internet installed (Howcroft, Hamilton and Hewer, 2002). <br />The Bank and E-business Benefits of the Internet<br />The research done by Gow (1997) indicated the benefits of the Internet banking system. These include improving banking revenues, customer service, and cost savings. This is described more in detail in an article called “Next Generation-Retailed Banking” (Compaq, 2001):<br />The money saved from the reduced amount of transactional costs. Online banking requires no ink, paper, and any tangible material; therefore, in the end, it will save money for whichever company uses this system of banking<br />The chance to attract new customers. The online banking system will attract customers who are usually not used to going to the bank physically; therefore, they will used the Internet banking system of the bank whichever has the most efficient system.<br />Improved ways to keep customers loyal to the bank. Since the banking will be online, the Customer Relationship Management (CRM) will be able to store information and statistics about their customers better since it will be saved up on the banking database. <br />There is a lot of research about Internet banking adoption. However, there is a lack of study focusing on the Philippine setting. This paper attempts to apply a similar study to the local front using the aforementioned papers as guides, and reserves the option to modify several elements of the research paper.<br />CHAPTER 3<br />F R A M E W O R K<br />3.1 A Priori Expectations<br />Table 3 : Expectations of Variables on Internet Banking Adoption<br />a. Perceived security+b. Internet experience+c. Marketing exposure+d. Use of other banking products+e. Type of Internet connection used+/-f. Demographics characteristics+/-<br />a. Perceived Security<br />Some customers deny using Internet banking as they perceive it as being easily sensitive to fraud. The survey by White and Nteli (2004) found that UK consumers ranked the security of bank’s web site as the most important attribute of Internet banking quality. Therefore, this study uses perceived security as a significant predictor. This perception can damage consumers’ confidence of the online system as a whole. According to a study conducted by Sathye (1999), 73% of the respondents avoided the adoption of online banking because they are concerned about the safety and security of transactions over the Internet. Moreover, Sathye (1999) found that consumer will not be ready to change from current familiar ways of banking to Internet banking unless their specific need is satisfied. <br />b. Internet Experience<br />Since online banking is delivered through the medium of the Internet, customers have to be familiar with the web browser (Lee et al., 2005). Also, the Technology Acceptance Model of Davis (1989) identifies perceived ease of use as a key factor in determining Internet banking adoption. Internet banking has been viewed by customers who are likely to be computer-literate and familiar with the Internet (The Straits Times, 14 September 1997). Therefore, it is expected that the more the individual uses the Internet and the more he or she perceives the Internet as compatible with his or her lifestyle, the more likely that the individual will adopt Internet banking. <br />c. Marketing Exposure<br />Some people are not aware of the great existence of Internet banking and the services it offer. They cannot enjoy the innovative products and services unless it is exposed to them. Sathye (1999) identified lack of awareness as one of the main barrier in Australia. Also, marketing effort in Turkey had a positive influence on E-banking acceptance (Polatoglu and Ekin, 2001).<br />d. Use of other banking products<br />There are only few customers who are using different kinds of banking products in the Philippines. However, a previous study indicated that banking products are initially embraced by consumers who are financially innovative (Gerrard and Cunningham, 2003). Also, customers who heavily utilized the existing electronic services such as ATMs or telephone banking showed a greater tendency to Internet banking adoption. Consequently, it is hypothesized that users of certain technologies are more likely to adopt online banking. In terms of compatibility with the needs of the potential adopters, Internet banking can be seen as an expeditious tool that allows customers to better manage their multiple accounts. As there are more financial products and services, it is expected that individuals who may have many financial accounts and who subscribe to many banking services will be more inclined to adopt Internet banking. <br />e. Type of Internet connection used<br />The speed of Internet connection used in the Philippines is slow compared to other countries. The download speed and rate of Internet connection in the Philippines are 679 kbps and 85 kbps respectively. In Asia and around the world, the Philippines ranked at #30 and #136 respectively in terms of speed of Internet connection. Some suffer from the slow connection problem and price of Internet installation (Internet Speed Test, 2011). However, in the studies used in Poland, the download speed rate for Internet connection is 512 kbps. The higher marginal cost and slow speed of dial-up connection did not appear to hinder consumers from conducting their banking activities online (Polasik, 2008).<br />f. Demographic Characteristics<br />Demographics serve as personal characteristics. This includes age, income, gender, educational attainment and so on. For instance, people with high educational attainment may have an aptitude for skills in computer and information technology. It is crucial that relationship between education and Internet banking is propounded. Age and gender also have been found to be important determinants in the online banking acceptance studies (Karjaluoto et al, 2002). Women are less likely to conduct Internet banking in Poland. Even geographic location and income level widely influenced the Internet banking adoption.<br />3.2 Conceptual Framework<br />Independent VariableUse of other banking productsBank cardsMobile bankingMarketing ExposureInternet Experience Internet use frequencyYear of Internet useInternet use at work Experience with online PurchaseExperience with e-financePerceived SecurityDemographic CharacteristicGenderYear of schoolingAgeEmployment statusIncome levelType of Internet connection used Figure 2 Research Model <br />Dependent VariableInternet banking adoption -><br />Figure 2 above is shown to illustrate the relationship between the independent and dependent variables of Internet banking systems. Independent variables such as Internet experience, marketing exposure, security, demographic features, and the type of Internet connection used correlate with the dependent variable which is the adoption of the Internet banking system. <br />C H A P T E R 4<br />M E T H O D O L O G Y<br />4.1 Research Design<br />Explanatory research was used in this study. The primary goal of this study was to understand the relationship between the independent and dependent variables. This method was used to show that one variable caused or determined the value of the other variable. Furthermore, quantitative approach was used to obtain the results of the study, appearing as numbers and statistics.<br />4.2 Sampling Design<br />A preliminary survey was conducted and from that, 266 samples were collected. Based on this number, nearly 40% of the respondents are Internet banking users, therefore, p= .4 was used in the formula below evaluating the needed number of respondents for the actual survey. <br />n=z2pqe2=1.962.4(.6).052=368<br />where:<br />n= sample size<br />z= confidence level<br />p= proportion of the population (in this case, proportion of Internet banking users)<br />q=1-p<br />e=confidence interval<br />The computed number was 368 but the questionnaires administered were more than this figure to account for the uncertainty and error. Thus, the sample used in this study was 600 Manila Internet users, completing interactive questionnaires. The total population of Manila city is 1.6 million (NSO, 2007). There was no accurate data available for population in Manila since the 2010 census was still in progress. Data gathering was done through the distribution of questionnaires. The effect of the variables mentioned in this study on the adoption status of Internet banking services was observed using the logit model. <br />4.3 Data Description and Collection Method<br />Questionnaires (attachment 1) were distributed in SM City Manila (92), University Mall along Taft Avenue (75), Robinsons Place in Malate (120), Binondo Church (53), Quiapo Church (43), Starbucks in Intramuros (86), Gotesco Tower near Malacanang (41), Robinson Residence (52) and Adriatico Tower along Adriatico Street (38). Table 4 defines the explanatory variables used in the study.<br />Table 4: Explanatory Variables Used in the Study<br />VariablesDefinitionPrevious StudyPerceived Security(Security)Security of Internet transactions perceived by the respondent; variable measured on a five-point scale ranging from 1 (very unsafe) to 5 (very safe)Davis, F.D. (1989), “Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology”, MIS Quarterly, Vol. 13 No. 3, pp. 319-40.Internet Experience(Internet Experience)Number of years the respondent has been using the InternetPikkarainen, T., Pikkarainen, K., Karjaluoto, H. and Pahn, S. (2004), Consumer Acceptance of Online Banking: an Extension of the Technology Acceptance Model, Internet Research, Vol. 14 No. 3, pp. 224–235.Internet at work(Internet_at_work)Internet use at work; 1 if the respondent uses Internet at work; 0 otherwisePikkarainen, T., Pikkarainen, K., Karjaluoto, H. and Pahn, S. (2004), Consumer Acceptance of Online Banking: an Extension of the Technology Acceptance Model, Internet Research, Vol. 14 No. 3, pp. 224–235.Internet Transactions(Internet_transactions)Experience with online transactions; 1 if the respondent conducted at least one Internet purchase or sale in the past; 0 otherwise Al-maghrabi, T. & Dennis, C. (2010) “Driving online shopping: Spending and behavioral differences among women in Saudi Arabia,” International Journal of Business Science and Applied Management, vol. 5, no. 1, pp. 30-47.Internet Financial Transactions(Financial_transaction)Experience with online financial transactions other than Internet banking (i.e. Internet purchase or sale of stocks, bonds, mutual fund shares, insurance policies or online borrowing); 1 if the respondent conducted at least one Internet financial transaction in the past; 0 otherwiseBlack, N.J., Lockett, A., Winklhofer, H. and Ennew, C. (2001), “The Adoption of Internet Financial Services: a Qualitative Study”, International Journal of Retail & Distribution Management, Vol. 29 No. 8, pp. 390-8.Marketing Exposure(Ads)Exposure to Internet banking advertisements; 1 if the respondent came across at least one advertisement; 0 otherwisePolasik, M. & Wisniewski, T.P. (2008) Internet banking Adoption in Poland. Retrieved on January 25, 2010 from http: //ssrn.com/abstract=1116760.Mobile Banking(Mobile_banking)Experience with mobile phone banking; 1 if the respondent conducted at least one financial transaction over the mobile phone in the past; 0 otherwiseLaforet, S. and Li, X. (2005), “Consumers’ Attitudes towards Online and Mobile Banking in China,” International Journal of Bank Marketing, Vol. 23 No. 5, pp. 362-380.Bank Card(bank_card)Credit card ownership; 1 if the respondent holds a credit card; 0 otherwiseAmin, H. (2007). “An Analysis of Mobile Credit Card Usage Intentions,” Information Management & Computer Security, Vol. 15 No. 4, pp. 260-269.Broadband(Broadband)Type of Internet connection; 1 if the respondent accesses the Internet via broadband Internet connection; 0 otherwisePolasik, M. & Wisniewski, T.P. (2008). Internet banking Adoption in Poland. Retrieved on January 25, 2010 from http: //ssrn.com/abstract=1116760.Years of Schooling(Education)Number of years spent in education; variable derived from the highest educational attainmentPolasik, M. & Wisniewski, T.P. (2008). Internet banking Adoption in Poland. Retrieved on January 25, 2010 from http: //ssrn.com/abstract=1116760.Age between 18 and 65(Age)Age level; 1 if the respondent is between 18 and 65 years of age; 0 otherwiseMaiyaki, A.A. and Mokhtar, S. S. (2010). Effects of electronic banking facilities, Employment sector and age- group on customers’ choice of banks in Nigeria, Journal of Internet banking and Commerce. Vol. 15, No. 1, pp. 1-8.Gender(Gender)1 if the respondent is a male; 0 otherwiseElder, V., Gardner, E., and Ruth, S. (1987), “Gender and Age in Technostress: Effects on White-Collar Productivity”, Government Finance Review, Vol. 3 No.6, pp.17-21.High income(Income)Income level; 1 if the respondent’s monthly income is above P35,000; 0 otherwisePolasik, M. & Wisniewski, T.P. (2008) Internet banking Adoption in Poland. Retrieved on January 25, 2010 from http: //ssrn.com/abstract=1116760.Employed(Employ) Employment status; 1 if the respondent is in paid employment; 0 otherwiseMaiyaki, A.A. and Mokhtar, S. S. (2010). Effects of electronic banking facilities, Employment sector and age-group on customers’ choice of banks in Nigeria, Journal of Internet banking and Commerce. Vol. 15, No. 1, pp. 1-8.White Collar(White_Collar)Occupation; 1 if the respondent is a white-collar worker; 0 otherwiseElder, V., Gardner, E., and Ruth, S. (1987), “Gender and Age in Technostress: Effects on White-Collar Productivity”, Government Finance Review, Vol. 3 No.6, pp.17-21.<br />4.4 Data Analysis Methods<br />Li = {Pi /( 1-Pi)} = β1 + β2Frequencyi + β3Internet_Experiencei + β4Internet_at_worki + β5Broadbandi + β6Internet_Transactioni + β7Securityi +β8Bank_Accounti + β9Bank_Cardi + β10Mobile_Bankingi + β11Financial_Transactioni + β12Adsi+β13Genderi+β14 Agei+β15Employi+β16Inci+β17Whti+β18Educationi<br />Logit model: Variables are defined in table 4<br />Since Internet banking adoption status is a binary variable, we used logistic regression to analyze the data (Greene, 2003). The parameters, z-statistics, p-values and Huber-White robust standard errors are estimated using quasi-maximum likelihood method. We used Eviews 7 to analyze the data, and the results are reported in table 5.<br />CHAPTER 5<br />R E S U L T S A N D D I S C U S S I O N<br />Based on the questionnaires, data were obtained to characterize the respondents. Of the 600 respondents, those aged 18 to 65 years old consisted of 28% and the rest are those below 18 or beyond 65 years old (Figure 3). Males and females comprise 55% and 45% of the total sample population (Figure 4). Figure 5 shows the educational background of the respondents, most of which have finished their undergraduate course in college.<br />638175342900<br />Furthermore, the respondents are a mix of unemployed and employed people (Figure 6). Of those employed, 61% reported having white collar jobs (Figure 7). For those employed, 76% have income less than P35,000 (Figure 8). <br />With regard to the Internet experience, Figure 9 shows that among the respondents, 70% of them use the Internet daily or almost daily. This number reflects that most people use the Internet since none of the respondents answered not using the Internet. Of the respondents, 55% have been using the Internet for 7 years or longer, 22% have used internet for 5 to 7 years, 12% have used internet for 3 to 5 years, 7% have used internet for 1 to 3 years, 3% have used Internet for 6 to 12 months and 1% have used Internet for less than 6 months (Figure 10).<br />The respondents were also asked about the type of Internet connection that they commonly used and 58% reported using among various wired connections such as broadband, DSL, and cable (Figure 11). <br />Most of the respondents access the Internet at their respective work as 59% reported doing so (Figure 12).<br />Accessing the Internet may be due to several reasons but determining their buying or selling experience through the Internet is vital to understanding the prevalence of Internet banking in Manila. Figure 13 presents the fraction of people who have bought or sold in the Internet in the form of online shopping. Other respondents also reported doing online purchase or sale of stocks, bonds or other securities, investment funds and insurance, raising a loan, and many others. Among the respondents, 78% have experienced performing any of the financial transactions mentioned above (Figure 14).<br />In terms of banking products, the respondents were also asked if they have bank accounts and 72% affirmed having bank accounts (Figure 15). Also, of these respondents, 73% use bank cards in the form of ATM, debit, and credit cards (Figure 16).<br />Mobile banking, another banking product, has been also studied. Of the respondents, 73% have reported using mobile banking and any of its services (Figure 17).<br />There are a lot of factors that affect the adoption of Internet banking. People have concerns on its security and some are influenced mostly by the marketing campaign of banks. According to the respondents, they have been acquainted with advertisements on Internet banking in different forms of media as 72% reported having seen, read, or heard about it (Figure 18).<br />In terms of the perceived security on Internet banking, the respondents were mostly uncertain on the security of Internet banking. Only 9% of the sample population reported being definitely sure that Internet banking is indeed safe (Figure 19).<br />It is stated that the independent variable on this study is the Internet banking adoption status in the Philippines; thus, it is necessary to determine who among the residents have already been performing Internet banking transactions. The use of Internet banking services includes mobile banking, money transfer, online remittance, and the others (Figure 20). <br />Table 5 : Descriptive Statistics on the Variables<br />all=600adopters=219non-adopters=381VariableMeanStd. Dev.MeanStd. Dev.MeanStd. Dev.Frequency3.4251.006343.429221.012883.422571.00389Internet_Experi5.1351.192685.374431.107314.997381.21936Internet_at_Wor0.4083330.4919360.6301370.4838730.280840.45Broadband0.5816670.4936970.6301370.4838730.5538060.49775Internet_Transa0.5133330.5002390.7305940.4446680.3884510.488039Security3.283331.022153.598170.9593563.102361.01438Bank_Account0.7233330.4477230.9269410.260830.6062990.489212Bank_Card0.7316670.4434620.9178080.2752860.6246720.484844Mobile_Banking0.2716670.445190.470320.5002620.157480.364732Financial_Trans0.2266670.4190240.4474890.4983740.09973750.300044Ads0.7916670.4064550.8949770.3072850.7322830.443351Gender0.5483330.4980740.6164380.4873670.5091860.500573Age0.8316670.3744740.8904110.3130920.79790.402094Employ0.4650.499190.6347030.4826160.3674540.482746Income0.2383330.426420.397260.4904520.1469820.354553White_Collar0.3916670.488530.5890410.4931350.2782150.448709Education3.236670.8155353.438360.9135023.120730.729899<br />Table 5 shows the summary statistics of the variables used in the study categorized by the adoption status. Based on this, out of the 600 sample population, 219 (37%) are Internet banking users. It is reported that most of the Internet banking adopters have used the Internet for an average of 5.4 years, most of them use Internet at work with broadband connections, they look at Internet banking to be safe and 93% and 91% of them have bank accounts and bank cards respectively. The adopters also have high percentage of online financial transaction experience compared to non-adopters who almost have no online financial transaction experience at all. Furthermore, adopters are more likely to be exposed to Internet banking advertisements and a large portion of them is comprised of white collar workers with high income. Moreover, most of the adopters are males who are 18 years of age and above.<br /> <br /> Table 6 : Binary Logit Model<br />Dependent Variable: EBANKINGMethod: ML - Binary Logit (Quadratic hill climbing)Sample: 1 600Included observations: 600Convergence achieved after 5 iterationsCovariance matrix computed using second derivativesVariableCoefficientStd. Errorz-StatisticProb.  β1-4.9619130.915816-5.4180260.0000β2FREQUENCY-0.1882890.119030-1.5818680.1137β3INTERNET_EXPERIENCE0.0854190.1066500.8009240.4232β4INTERNET_AT_WORK1.0613370.2685773.9517080.0001β5BROADBAND0.1510270.2313580.6527830.5139β6INTERNET_TRANSACTION0.6179210.2361082.6171180.0089β7SECURITY0.2732350.1197332.2820390.0225β8BANK_ACCOUNT1.5518370.3845994.0349500.0001β9BANK_CARD0.3427400.3908510.8769080.3805β10MOBILE_BANKING0.7445410.2463663.0220890.0025β11FINANCIAL_TRANSACTION1.7862620.2828126.3160660.0000β12ADS0.7082880.3222312.1980720.0279β13GENDER0.3894710.2292461.6989210.0893β14AGE-0.0806860.347160-0.2324160.8162β15EMPLOY-0.3785720.320434-1.1814360.2374β16INCOME0.4208540.3014501.3960970.1627β17WHITE_COLLAR0.5164240.3072311.6809000.0928β18EDUCATION-0.0850110.168289-0.5051510.6135McFadden R-squared0.346076    Mean dependent var0.365000S.D. dependent var0.481832    S.E. of regression0.377676Akaike info criterion0.918263    Sum squared resid83.01601Schwarz criterion1.050171    Log likelihood-257.4789Hannan-Quinn criter.0.969612    Deviance514.9578Restr. Deviance787.4890    Restr. log likelihood-393.7445LR statistic272.5313    Avg. log likelihood-0.429131Prob(LR statistic)0.000000Obs with Dep=0381     Total obs600Obs with Dep=1219<br /> Likelihood ratio test: Chi-square(17) = 272.531<br />It can be noted that the data are said to be well represented in the theoretical model based on the likelihood ratio test, Chi-square value of 272.531 with df=17. In addition, the log likelihood of the model is higher than the restricted log likelihood, which strongly proves that regression has a highly predictive power. <br />The McFadden R-square is used to measure the goodness-of-fit as to its counterpart, R-square in OLS. In this study, the value of McFadden R-square is 35% which provides strong evidence that the regression is able to explain the adoption status in most of the cases. Furthermore, based on the critical value of 0.05, the model correctly predicts 80% of the respondents. Another statistical measure also provides further evidence, the Hosmer and Lemeshow Goodness-of-Fit test (Hosmer and Lemeshow, 1989), which shows a chi-square of 4.7560 with a probability value of 0.7833 (Table 7).<br /> Table 7 : Goodness-of-Fit Evaluation for Binary Specification<br />Andrews and Hosmer-Lemeshow TestsEquation: UNTITLEDDate: 08/07/11 Time: 16:16Grouping based upon predicted risk (randomize ties)    Quantile of RiskDep=0Dep=1TotalH-LLowHighActualExpectActualExpectObsValue10.00620.02705858.932421.06757600.8291520.02730.06215857.356822.64316600.1637130.06250.12145554.698055.30195600.0188640.12250.18915250.762089.23799600.1961050.19080.26754646.47541413.5246600.0215860.26860.41004239.92451820.0755600.3224670.41090.53523032.01173027.9883600.2710180.53560.69801922.54654137.4535600.8937090.69800.86361813.90764246.0924601.56755100.86510.976734.384845755.6152600.47185Total381381.000219219.0006004.75597H-L Statistic4.7560Prob. Chi-Sq(8)0.7833Andrews Statistic5.7340Prob. Chi-Sq(10)0.8371<br />Analyzing the correlation between the dependent and independent variables, perceived security appeared to be significant, which suggested that people looked at Internet security as an important factor before they decide to adopt Internet banking. For people to choose performing banking transactions through the Internet, they need to consider whether the transactions are safe as these transactions involve money. Also, cases of fraud and theft in the Internet, particularly hacking of personal information, are rampant so people tend to be cautious in dealing with transactions in the Internet. Therefore, the null hypothesis was rejected.<br />Also, one variable related to Internet experience, using the Internet at work, was found statistically significant, which means people who use Internet at work are more likely to adopt Internet banking. Therefore, the null hypothesis was rejected regarding the dependent variable, Internet use at work. Experience in online transactions especially Internet shopping also showed significant influence on Internet banking adoption. People with prior experience in Internet transactions have increased likelihood in adopting Internet banking. In addition, those who performed online financial transactions were also found to be more likely to adopt Internet banking. However, other variables such as frequency of using the Internet and the years of using the Internet did not show any significance in Internet banking adoption. It was observed that most age groups, even elementary and high school students have access to the Internet; thus, the frequency of using the Internet did not affect the adoption of Internet banking.<br />Furthermore, as the results suggested, the respondents who were exposed to Internet banking advertisements were more likely to use Internet banking. Marketing exposure is one strategy for banks to attract clients to adopt Internet banking. Therefore, it was concluded that the marketing experience has an effect on Internet banking adoption.<br />The ownership of bank accounts and performing mobile banking were found to have significant influence on Internet banking adoption. Since people were already exposed to using other banking products, they were more likely to adopt Internet banking. However, the possession of credit card, debit card or other bank cards did not show significance to the adoption of Internet banking. Therefore, it was concluded that the alternative hypotheses on mobile banking and ownership of bank accounts are supported by the data. In addition, the quality of the different banking products and services offered must be ensured to attract more clients to adopt Internet banking.<br />The type of Internet connection did not show significant effect on the adoption of Internet banking. The difference in speed of Internet connection, availability, and cost among the types of Internet connection did not prevent consumers in performing Internet banking.<br />For demographic predictors, no variable was found to significantly influence Internet banking adoption. Therefore, variables such as gender, age, employment, income, and education have no effect on the status of Internet banking adoption. The results in this study regarding the influence of demographic determinants were contrary to those of Polasik (2008) in which gender and age had significant effects on the Internet banking adoption status. It may be inferred that whether one is male or female does not prohibit him/her from using Internet banking. Employment and income as well as educational attainment have no significant impact on Internet banking. These demographic characteristics appeared insignificant due to the low number of respondents aged below 18 or above 65 years.<br />CHAPTER 6<br />C O N C L U S I O N<br />The primary purpose of this study is to identify the factors behind the Internet banking adoption based on different journals which studied on Internet banking adoption and the respondents were comprised of 600 Internet users in the City of Manila. Logit model which was used in the analysis had been considered the appropriate method for determining the variables related to Internet banking adoption status. Based on the findings, perceived security, using Internet at work, performing Internet transactions, having bank accounts, engaging in mobile banking, having financial transactions, and marketing exposure were significant variables. <br />Perceived security proved to be a major concern in the adoption of Internet banking. The notion about Internet banking needs to be improved especially in the Philippines by adopting more advanced technology and strengthening the security of Internet banking transactions. <br />The use of Internet at work, having bank accounts, engaging in mobile banking and performing online and financial transactions foster Internet banking adoption since these provide people the convenience and efficiency in performing banking transactions. <br />Likewise, the exposure to marketing campaigns influenced Internet banking adoption. However, this study was not able to observe the effect of demographic characteristics on Internet banking adoption. <br />Although this study was able to identify the factors underlying the Internet banking adoption of Manila Internet users, there are still some barriers that prohibit the development of Internet banking in the Philippines particularly in the City of Manila. Infrastructure and availability of Internet are pertinent factors to the further development of Internet banking. The popularization of Internet banking is closely linked to the economics and education. It would take several years for the Philippines to fully develop its Internet banking system since it is ranked as having one of the lowest GDP per capita among Southeast Asia (IMF, 2011). <br />CHAPTER 7<br />R E C O M M E N D A T I O N S<br />Internet banking is important for SMEs and e-commerce. It is a good opportunity for banks to market their Internet banking service in the midst of the emergence of group buying websites. This research is limited to the analysis on the behavior on Internet banking of Internet users living in the City of Manila. The research may be extended to surveying a sample population from the entire Metro Manila. Therefore, it is suggested that further study be done focusing on the Philippines.<br />E-commerce in the Philippines can also be enhanced. Through Internet banking, people could transact their fund or budget anywhere, anytime. People can now invest in financial products located in other countries and regions more conveniently. Also, people can purchase financial securities in other countries and regions. Meanwhile, SMEs can expand their businesses through worldwide connections through Internet banking systems. <br />Furthermore, banks must find ways in improving the management of Internet banking accounts paying more attention on the issues of security. The result of this study can aid in attracting more clients by identifying the target market segment and improving the marketing campaigns of banks. Banks must initiate actions that could increase the longevity of Internet banking adoption in the Philippines like offering added incentives and services to encourage more users and improving the technology handling the transactions. <br />Also, Internet banking adoption will be helpful for both banks and individuals to reduce their expenses and to manage their time. <br />Table 8 : Operating Expenses of Several Philippine Banks (Appendix 3)<br />BankPercentage in Operating Costs (%)Occupancy and other Equipment ExpensesCompensation and Fringe Benefit Expense200820092010200820092010Allied Bank11.2910.71034.8931.9332.46Philippine National Bank7.927.087.434.2132.1527Bank of the Philippine Islands28.9628.69 29.0344.2246.5343.61Banco de Oro5.255.135.0636.2538.5939.15Metro Bank4.924.32527.4434.6435.10<br />All information shown on Table 8 portrays the incurred expenses of 5 Philippine banks over a one year period occupancy and compensations. One of the advantages of Internet bank is that banks can minimize their rent and compensation expenses as the number of physical branches is decreased since banking users do not need to visit the bank to process banking services such as transferring fund, billing payments and applying loans as well. Also, banks can provide banking services with cheaper costs since banks can decrease their operating expenses. However, there may be arguments after this. First, if banks provide their service with cheaper costs, service income is going to decrease. Since there is an increase in Internet banking users because of its convenience, customers want more banking or financial products to increase their fortune or wealth. Therefore, banks need to provide a wide array of high quality of services to customers. Second, if banking industries minimize employees due to reduction of physical branches of banks, it might create a problem of unemployment in the banking industry. <br />With regard more to the Philippine context, there are billions of remittances from Overseas Filipino Workers (OFWs) each year through traditional channels, it is now time for them to transact through Internet banking. OFWs need to pay remittance fees when they send salary or money from abroad to their loved ones residing here in the Philippines. Banks could reduce the remittance fee if they provide Internet banking services to OFWs since banks do not need to put a physical branch to offer remittance services. The amount of remittance of OFWs increases when the number of OFWs increases. The total remittances of OFWs around the world amount to 7,898,459,000 USD. Most OFWs are working in Asia but the greater portion of the remittances comes from US, Japan, Hong Kong, Singapore, Saudi Arabia and United Arab Emirates. 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Retrieved from http://www.slideshare.net/yuga/yahoo<br />nielsen-net-index-2010 on June 18, 2011.<br />Appendix 1<br />Internet banking adoption survey<br />Gender<br />Female<br />Male<br />Year of Birth<br />19__ or 20__<br />Educational Attainment<br />Elementary<br />High school/Vocational<br />College(undergraduate)<br />Graduate<br />Post-graduate<br />Employed?<br />Yes<br />No<br />Monthly income<br />no income<br />P500-3000<br />P3001-7000<br />P7001-12000<br />P12001-20000<br />P20000-35000<br />P35000-80000<br />P80,000 and above<br />Are you a white collar?<br />(a salaried professional or an educated worker who performs semi-professional office, administrative, and sales coordination tasks, as opposed to a blue-collar worker, whose job requires manual labor)<br />Yes<br />No<br />How often do you use the Internet?<br />Never<br />Less than once a month<br />several times a month<br />2-3 times a week<br />daily or almost daily<br />How long have you been on the Internet?<br />less than 6 months<br />6 to 12 months<br />1 year to 3 years<br />3 to 5 years<br />5 to 7 years<br />7 years or longer<br />Where do you access the Internet?<br />(You can select any number of responses)<br />at home<br />at work<br />at school<br />in the dormitory / hotel<br />in the Internet cafe<br />from a public terminal (e.g. library, office, shopping center)<br />elsewhere: (please write where)_____<br />How do you access the Internet?<br />wireless(via wifi/wimax/3g/GPRS)<br />by wired (e.g. broadband,DSL, cable)<br />another way: (please specify)____<br />Have you ever bought or sold on the Internet?<br />Yes<br />No<br />Do you have a personal bank account?<br />Yes<br />No<br />Which bank card(s) do you have?<br />(You can select any number of responses)<br />Debit/ATM card (e.g. Citibank ATM Card)<br />a credit card (e.g. MasterCard / Visa)<br />other cards (please specify)<br />I have no bank cards<br />Have you ever performed the following online financial transaction(s)?<br />(You can select any number of responses)<br />purchase or sale of stocks, bonds or other securities<br />purchase or sale of investment funds<br />purchase insurance (or by a request from the Internet)<br />Raising a loan (or to request a loan via the Internet)<br />Others<br />Never<br />Have you ever done financial transactions via mobile phone?<br />Yes<br />No, although I have a cell phone<br />I do not have a mobile phone<br />Do you consider making online transaction to be safe?<br />Definitely not<br />Probably not<br />It is difficult to say<br />Probably yes<br />Definitely yes<br />Where did you see the advertisements of Internet banking?<br />(You can select any number of responses)<br />Internet<br />On TV<br />in the press<br />posters / billboards<br />on the radio<br />never seen such advertisements<br />in other places (please write in which)_____<br />Have you ever used Internet banking service?<br />Yes<br />No<br />Appendix 2<br />Table 9 : Questionnaire Response<br />Independent VariableResponse Figurein PercentageFrequencyNever00%Less than once a month 6210%several times a month 417%2-3 times a week 7513%daily or almost daily 42270%<br />Internet_Experienceless than 6 month 81%6 to 12 month 183%1 year to 3 years 437%3 to 5 years7112%5 to 7 years13322%7 years or longer32755%SecurityDefinitely not346%Probably not9917%It is difficult to say18731%Probably yes22638%Definitely yes549%EducationElemenatary 173%high school/vocational5810%College32755%Graduate 16227%post graduate366%Internet_TransactionYes30851%No29249%Bank_AccountYes 43472%No16628%Bank_CardYes43973%No16127%Mobile_BankingYes 16427%No43673%<br />Financial_TransactionsYes13523%No46578%AdsYes47579%No12521%EbankingYes21936%No38164%GenderYes32955%No27145%Age18 to 6550083%Below 18 or Over 6510017%EmployYes 27947%No32154%Incomemore than 3500014324%less than 3500045776%White_CollarYes 23539%No36561%Internet_at_WorkYes24541%No35559%BroadbandWireless25142%Wired34958%<br />