Towards a Theory of Multi‑Channel Banking Adoption amongst Consumers

Abstract

Abstract: Multi‑channel retail banking is a novel banking approach, one which encompasses traditional banking approaches as well as modern Internet‑based banking innovations. The main objective of the study is to investigate the factors that influence the choice and adoption of a particular banking channel, from amongst available options. This study is conducted within an interpretivist paradigm under the guidance of an inductive grounded theory approach. The purpose of this combination is to allow for the exploration of the phenomenon through the use of semi‑structured interviews to gather data from individuals who have bank accounts. The gathered data was analysed employing the techniques available through grounded theory methodology. The theory reveals that prior to using a particular banking channel for a specific transaction, consumers sub‑consciously or consciously perform an evaluation of available and known channels, and then make a choice. Various factors influence this choice, such as comparative advantages of one channel over another, compatibility with personal preferences and the transaction being performed, and the time and place. After usage, consumers assess the satisfaction of the banking experience before deciding whether to continue using a certain channel for a specific transaction, or choosing an alternative.