Home › Vol 7, No 1 (2018): August  ›  Abstract ›  View Pdf

Resistance to Mobile and Internet Banking Innovation in Ozamiz City, Philippines

Ringgold P. Atienza

Innovations, even the successful ones, face initial resistance from their users that hinders or slows down its adoption process. The mobile and internet banking innovation in the Philippines was not spared from this phenomenon. Initial resistance could become a barrier to adoption of this innovation. Since the innovation faces a widespread resistance among bank customers, concentrating on understanding the reasons for innovation resistance is helpful. This study used the innovation resistance framework that has five barriers namely: usage, value, risk, tradition and image barriers. This study explored the level of resistance to mobile and internet banking among bank clients in Ozamiz City. It also explored the significant effects of customer’s socio- economic profile to their resistance. This study employed the survey method using a questionnaire. Respondents were randomly selected from institutions and households in Ozamiz City. Mean, standard deviation, Pearson correlation, and t-test were the statistical tools used. Results showed that risk barrier was the strongest barrier while usage is the weakest barrier. This signifies that customers do not resist internet and mobile banking because they are not capable of using the platform but because they are afraid of any financial risks they might encounter when they are online. News concerning fraud on banking, whether using branch-based or mobile and internet banking increase the challenge for banks in the mainstreaming of this innovation. Banks must exert effort in communicating with their customers on the security issues of their platform to overcome the problem of resistance.

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