Electronic banking in Finland: Consumer beliefs and reactions to a new delivery channel

The increasing turbulence in the financial service industry sector since the mid-1990s has created a whole new delivery channel for banking: Internet banking. The purpose of this paper is to describe the current state of Internet banking in Finland and to study consumer perceptions, beliefs and reactions to electronic banking in general and Internet banking in particular. The results of this study indicate that bank managers can, by knowing the basic beliefs consumers hold about Internet banking, create more effective customer communication, improve software and target prospects better concerning Internet banking. There is wide agreement that Internet banking will on the one hand have a great impact on the whole bank market, and on the other hand will be considered the most important retail banking delivery channel in the near future. A total of 3,000 questionnaires was prepared and sent to MeritaNordbanken customers in Finland. Using a mailed questionnaire with a response rate of 38.9 per cent, it was found that 40 per cent of the Finnish consumers who responded to this survey were already using Internet banking services. The results of this study provide interesting additions to knowledge of electronic banking and consumer behaviour.