This document discusses factors that influence the adoption of internet banking (IB) based on demographics. Younger and more educated people are more frequent users of IB. Willingness to use IB decreases with age, as older people may lack computer literacy and find IB difficult to use. Security concerns, complexity of online transactions, and resistance to change also contribute to lower adoption rates among older age groups. The elderly, aged 55 and above, are least likely to conduct financial transactions online due to technology knowledge, security concerns, preference for in-person interactions, and perception that risks outweigh benefits.

1. NAME:
MATRIC #:
SUBJECT:
LECTURER:
SEMESTER:
Jayar Caraballo Namdar Zanganeh
BBA113AP980
CICT3223 E-Banking
Hamza Abd Allah Al Shorman
September 2014

2. Also known as Internet banking, it refers to the use of the
Internet as a delivery channel for banking services,
including traditional banking services such as balance
enquiry, printing statements, fund transfers to other
accounts and bill payments and new banking services
such as electronic regular payments and direct credit for
salaries.

3. IB Usage Demographics
Age was found to impact on the customer's willing to use
IB. Younger bank customers seem all the more willing to
use IB products and services, while the preparedness to
use such technology decreases as age increases.
Age coupled with factors, such as…
• Educational level
• Marital state, and
• Economic state
…also change the findings of the studies conducted
worldwide.

4. Young, affluent and educated people from both genders are
more frequent users of e-banking, accessing their account
information and executing banking activities online. The same
counts for middle-aged people of higher education and higher
income. among consumers with the high level of education

5. Women are
more in need
Women are more in need of fast e-banking
solutions to fit their busy
of fast e-banking solutions
schedule
to fit their busy schedule

6. The probability
of adopting e-banking
decreases with age.
The probability
of adopting e-banking decreases with age.

7. A study in the UK, estimated that by 2012,
more than 9.2 million people were still
perceived to be resistant in getting involved
A study in the UK, estimated that by 2012,
more than 9.2 million people were still
perceived to be resistant in getting involved in
this electronic in age.
this electronic age.
Their research noted that older people
Their research noted that older people usually
buy usually products buy products and services and according services according
to their
convenience.
to their convenience.

8. They outlined the main factors under the
following points:
Compatibility:
Compatibility:
 This means having computer literacy.
 Quick advances in technology make it difficult for
This point quite simply refers to having computer literacy, having
internet literacy, and ability to perform tasks of IB. Given the
quick the advances older in generation technology to and keep changes up.
in hardware, it may
 prove Therefore, difficult for time the older and generation effort expended to keep up. in learning Therefore,
to
time and effort expended in learning to use IB could have been
use IB could have been invested in accomplishing
the invested task personally!
in accomplishing the task personally.

9. Perceived Ease of Use (PEOU):
PEOU defines how easy it is to adopt a technology. The
studies showed that 34% of people assume IB is
difficult PEOU to defines adopt and how 40% easy have it neutral is to adopt behavior
a
technology. The studies showed that 34% of
people assume IB is difficult to adopt and 40%
towards IB. 45% of nonusers defines IB procedures as
complex suite of actions and 40% have never thought
about IB. This group may have knowledge about IB, but
have neutral behavior towards IB. 45% of
prefer face-to-face communication.
nonusers defines IB procedures as complex suite
of actions and 40% have never thought about IB.
This group may have knowledge about IB, but
prefer face-to-face communication.

10. The use of IB is not worth
the Perceived risks associated Usefulness
with its
use. Risks include privacy
The use of IB is not worth the risks
associated with its use. Risks include
privacy issues, security, and complexity
issues, security, and
complexity in online
in online transactions
transactions

11. Resistance to Change:
Resistance to Change:
Non-users in this segment avoid IB because they
rather not take Non-risks users and in challenges, this segment:
do things
avoid IB because they rather not take risks and
challenges.
Do things only on the basis of ‘loss based
selection’ Improve life in restricted dimensions.
It is only natural that a person avoids testing any
new idea where the chances of financial loss are
high, as is the case with elder customers.
only on the basis of ‘loss based selection’
improve life in restricted dimensions, since it
would only be natural that a person avoids
testing any new idea where the chances of
financial loss are high, as is the case with elder
customers.

12. CONCLUSION:
Internationally, studies and statistics have consistently shown the effect
demographics have on e-banking use;
CONCLUSION:
Young, well-educated, technology savvy customers have the highest
percentage, Internationally, studies particularly and statistics have among consistently male shown the customers.
effect demographics have on e-banking use;
Young, well-educated, technology savvy customers have the highest percentage, particularly among male customers.
Middle-aged customers resort to e-banking usage due to convenience
and time-constraints, while security concerns remain constant among
all age groups.
Middle-aged customers resort to e-banking usage due to convenience and time-constraints, while security concerns remain
constant among all age groups.
The elderly, 55 and higher, mostly refrain from conducting financial transactions of any kind online; some reasons include:
technology knowledge, security concerns, preferring face to face contact, and actually not perceiving that much benefit when
contrasted with the risks involved.
The elderly, 55 and higher, mostly refrain from conducting financial
transactions of any kind online; some reasons include: technology
knowledge, security concerns, preferring face to face contact, and
actually not perceiving that much benefit when contrasted with the
risks involved.