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.