Abstract
The advent of fintech is blowing a new wind into the financial industry. New business models have been created and consumers’ access to financial services is higher than ever. Internet-only banks based on advanced information technologies have emerged as a leader in the fintech industry, and these banks are fiercely competing with large banks using internet banking as a weapon to attract new customers. The purpose of this study is to explore the factors that influence customers’ intention to switch to internet-only banking services from traditional internet banking services in Korea. To this end, a research model was developed based on the push-pull-mooring model (PPM), which is a migration theory. The research model was analyzed using partial least squares structural equation modeling (PLS-SEM). The findings will provide the practitioners of the new internet-only bank with strategic guidance for attracting new customers and help practitioners of traditional banks to retain current customers.
Highlights
With the recent development of mobile technology, fintech services that combine information technologies with existing financial industries are rapidly growing
The results of the hypothesis testing showed that low system quality and operation policy influenced dissatisfaction, which in turn influenced customers’ intention to switch to internet-only banking
The low system quality of incumbent internet banking and dissatisfaction with the operation policy was found to have a positive effect on dissatisfaction with internet banking
Summary
With the recent development of mobile technology, fintech services that combine information technologies with existing financial industries are rapidly growing. Fintech is a compound word for finance and technology, which means information technology-driven changes in the financial industry based on advanced information technologies such as mobile, big data, and social network services (SNS). The fintech industry is rapidly increasing globally following the development of fourth industrial revolution-based technologies such as big data, artificial intelligence (AI), block chain, the internet of things, deregulation of fintech companies, and changes in consumer expectations of digitization. Appropriate responses to these rapid changes and growth can bring about the sustainable development of the national economy. In today’s fourth industrial revolution era, internet-only banks are a new field of the financial industry, offering improved consumer convenience, easy accessibility, and personal profitability, and can bring about the development of the financial industry based on new innovative technologies
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