Determinants of adoption and continuance intentions toward Internet-only banks

Purpose The purpose of this study is to investigate the determinants of consumers' intention to adopt or continue to use Internet-only banks based on the benefit–risk framework and network externality theory. It also examines the difference in the determinants between pre- and postadoption stages of innovation. Design/methodology/approach The proposed research model was tested by using online survey data collected from a South Korean sample, which was divided into two subgroups of 321 nonadopters and 351 existing users. Findings In both pre- and postadoption stages, the number of services provided and trust had a significant positive impact on consumers' behavioral intentions, while security risks had a negative impact. Critical mass in the preadoption stage and convenience and economic efficiency in the postadoption stage had positive effects on consumer's adoption intention and continuance intention, respectively. Practical implications Internet-only banks must reduce the security risks for consumers and increase their trust. In addition, to facilitate the adoption of nonadopters, focus should be on securing a critical mass; on the other hand, to promote the continued use of existing users, the focus should be on enhancing benefits such as convenience and economic efficiency. Originality/value The results of this study confirm the influence of network externalities on consumers' adoption and use of financial technology services and show differences in consumer decision-making according to the innovation diffusion process.