Segmenting Bank Customers by Resistance to Mobile Banking

The objective of the study is to explore bank customers´ varying reasons for resisting mobile banking services. Today mobile communications technologies offer vast additional value for consumers´ banking transactions due to their always-on functionality and the option to bank virtually any time and anywhere. However, before being adopted, all innovations face various types of resistance that may paralyse customers´ desire to adopt an innovation. Following Ram and Sheth [1], resistance was measured with five barriers namely usage barrier, value barrier, risk barrier, tradition barrier and image barrier. An Internet questionnaire was developed and 1,540 responses from the non-users of mobile banking were collected. The results of the cluster analysis showed that different bank customers do indeed have different reasons for resisting mobile banking. The results indicate that older and less educated people and those who are entrepreneurs, farmers or retired are significantly more opposed to banking innovations than the other members of a social system. Moreover, younger people who are working in a good, well-paid profession do not perceive mobile banking to be as risky as do other online customers. The study provides academics and bank managers with an enhanced understanding of the different reasons inhibiting mobile banking adoption and the consumer demographics that determine such resistance.