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.