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INTRODUCTION
Generations X and Y are the 'younger' generations compared to the Baby Boomer generation and much has been written about their technological preferences and usage. In relationship to the consumer retail financial services industry, little or no empirical research has, however, been conducted into their attitude toward internet banking, with the one exception of LIMRA International's 2002 Report. 1 Similar to LIMRA's 2002 Report, most research on banking services has, however, focused on the large competitive US banking markets.23
This paper provides a much needed contribution to research on financial services by providing a comprehensive empirical investigation into internet usage and online banking behaviour and perceptions of two important emerging market segments: Generations X and Y. Generation X are persons born between 1965 and 1977 and Generation Y between 1977 and 1995. 45 It addresses gaps in banking research conducted on banking behaviour of consumer segments by adding to what is already known about segments such as Baby Boomers. Generations X and Y differ from Baby Boomers in their experiences and expectation, such as in higher usage of technology and in different core values. 67 Table 1 (See PDF) summarises the differences between Baby Boomers, Generation X and Generation Y. In addition, banking research conducted in Australia contributes to understanding the banking industry outside that of the US. Additional contributions in this study include conducting differential analyses on Australian Generations X and Y's respondents' internet usage and internet banking behaviour to investigate the effects of nationality, age, gender, whether English is the respondent's first language, and interests and activities.
This paper will begin with a discussion of the Australian consumer banking industry. Extant literature describing Generations X and Y will then be thoroughly discussed followed by internet banking. Hypotheses will be proposed. The methodology of this study will then be described. The results section will report on the hypotheses tested as well as other information revealed by the descriptive and differential analyses.
THE AUSTRALIAN CONSUMER BANKING INDUSTRY
The banking services industry in Australia can be described as competitive and progressive, primarily due to deregulation more than 20 years ago. The 1980 Campbell and 1984 Martin Committee Reports resulted in the federal government deregulating the banking industry from the Reserve Bank and opening...