Summary
A bank's decision to adopt Internet technologies depends, at least in part, on the characteristics of the market it serves. Past research has shown that demographic characteristics of a bank's potential customers, such as income and education, as well as whether the bank is located in a metropolitan area, are important factors that a bank should consider when deciding whether to offer Internet banking. Competitive factors, such as the bank's deposit market share, presumably influence the adoption decision as well. The adoption rates of Internet banking indicate that larger banks as a group have been more likely to adopt Internet technologies. Census data reveal that markets of Internet banks have slightly higher median income, on average, than markets of non-Internet banks.
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Extract
Point and Click, or Mortar and Brick?
Internet banking has been on the rise since its inception in 1995. Services today include delivery of account statements, online credit card and loan applications, transfer of funds between accounts and online bill payment. These services have the potential to alter many aspects of the banking industry-in particular, the degree of market competitiveness and finan...
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