Internet banking: a customer-centric perspective

Many financial institutions are actively developing new electronic banking products for their retail customers. These efforts are can succeed only if their managers focus the promotion of the new services toward those customers who are most likely to find them attractive. The analysis of a 6-branch financial institution presented in this study suggests that institutions are vulnerable to loss of customers to rivals with extensive online services. The likelihood of current customers being tempted to do business online with another institution was shown to increase with the level of customer transaction use on the Internet. Current customer account relationships are found to be predictive of electronic services use in general. And, interest in the use of specific online services is related to differing customer relationships in addition to ordinary demographic and balance information. These findings can be useful in identifying potential users from a customer relationship management perspective.