Consumer Adoption of Online Banking: Does Distance Matter?

摘要: This paper tests whether consumer adoption of online banking is affected by the distance to one’s bank branch. During last decade, rapid diffusion Internet has dramatically changed ways consumers conduct every-day businesses. An important trend in increase use among U.S. households for accessing financial accounts and paying bills. I estimate a logit model with household level data from 1998 2001. In order correct possible endogeneity bank, instrumental variables framework following control function approach suggested Petrin Train (2002). find that closest branch does not affect likelihood household. The type account one her institution, however, significant predictor use, implying are likely provision more some than others. results suggest channels may be viewed as supplement other traditional channels. also impacts various individual bank-specific characteristics on have surprising given late 1990s, corresponding rise availability, acceptance familiarity an additional business channel.