doi: 10.1111/j.1470-6431.2006.00541.x 552 International Journal of Consumer Studies, 30, 6, November 2006, pp552–560 © 2006 The Authors Journal compilation © 2006 Blackwell Publishing Ltd Blackwell Publishing LtdOxford, UKIJCInternational Journal of Consumer Studies1470-6423Blackwell Publishing Ltd, 2006 2006306552560Original ArticleOnline banding servicesM. Mavri and G. Ioannou Correspondence Maria Mavri, Evelpidon 47A & Lefkados 33, 113-62 Athens, Greece. E-mail: mania@aueb.gr Consumers’ perspectives on online banking services Maria Mavri and George Ioannou Department of Management Science & Technology, Management Sciences Laboratory, Athens University of Economics & Business, Athens, Greece Abstract The forces of economic change, coupled with advancements in technology, prompt banks to rethink their use of tradi- tional branches and begin forming new partnerships to deliver financial services. The Internet seems to be the new delivery channel in the banking sector. Factors such as the security of personal data or the reliability of a financial insti- tution have been identified by previous studies as the deter- minants of electronic-banking adoption. In this paper, a series of new factors, such as the difficulties of using the Internet, are shown to play a crucial role in the consumer’s attitude – adoption or rejection – of this new alternative channel. We examine consumer behaviour by modelling mul- tivariate categorical response data using a generalized linear model. Our choice model is based on the assumption that an individual’s decision to use electronic services depends on a number of explanatory variables, and we try to estimate the factors that affect an individual’s decision to use online services. Keywords Online banking, binary logistic model, consumer behaviour. Introduction Recent advances in communication technology, includ- ing the development of more powerful computers, are paving the way for new banking products and services, changing the way that traditional banking is done. Tech- nology has added a new dimension to the competitive pressures that are already reshaping the financial ser- vices industry. The resulting changes will have a great impact on the development and use of alternative distribution channels. The most recent delivery channel is online banking. Electronic or online banking is the newest delivery channel to be offered by retail banks in many developed countries, and there is a wide agree- ment that this channel will have a significant impact on the market. Banks know that the Internet opens up new horizons for them and moves them from local to global frontiers. The new world of electronic banking is changing day by day. Electronic banking uses more traditional tech- nologies, such as personal computers (PC) or tele- phones, in order to pay bills, transfer funds and obtain account information. Electronic commerce on the Inter- net and using technology to dispense federal and state benefits are only recently being considered (Stegman, 1999). Customer adoption is a recognized dilemma for the strategic plans of financial institutions. Several studies have investigated why individuals choose a specific bank. Important consumer selection factors include convenience, service facilities, reputation and interest rates (Kennington et al., 1996; Zineldin, 1996). Accord- ing to Delvin (1995), customers have less time to spend on activities such as visiting a bank and therefore want a higher degree of convenience and accessibility. Liao and Cheung (2002) used survey data and regres- sion analysis to measure consumer attitudes towards Internet-based e-retail banking as a financial innova- tion. They found that individual expectations regarding accuracy, security, network speed, user-friendliness, and user involvement and convenience were the most important quality attributes in the perceived usefulness