A study on factors affecting a customer's switching intention to pure-play Internet bank using the Push-Pull-Mooring model

Abstract

Despite the pure-play Internet banks are in their early growth stage and they are drawing public attention after the establishment, research in this field is still insufficient and also there are only few studies on user acceptance factors and switching intention to pure-play Internet bank. Therefore, this study examines the major factors affecting customers intention to switch to a pure-play Internet bank to suggest implications for both pure-play Internet banks and legacy banks in Korea. Also, this would be helpful for the new establishment to speculate their success possibility. In particular, this research investigates various factors influencing the users switching based on the Push-Pull-Mooring (PPM) model, which is typically used to explain human geography migration and service migration, in order to explain the switching behaviour instead of applying the theories that are often used in technology related studies such as models regarding the acceptance or adoption of technology. A total of 223 questionnaires were analysed and as a result, Alternative Attractiveness of pure-play Internet bank, Social Influence of pure-play Internet bank, and Inefficiency of legacy bank were found to have positive effects on the customers intention to switch to pure-play Internet bank from legacy bank. It is expected that this research can be useful, especially for pure-play Internet banks in Korea, which have been evaluated as having fewer actual users than the number of accounts and for those who wish to establish the pure-play Internet banks in the future. Also, it is expected that the results of this study pave the ways for the banking and financial industry to successfully grow and improve their services.