Using data from the 2016 Survey of Consumer Finances, this study investigates factors that affect electronic
banking adoption rates. Financial knowledge, income, education, and credit card ownership are associated with
a high probability of electronic banking adoption. However, age is negatively associated with the probability of
online banking adoption and the African American consumer is less likely to adopt electronic banking. This
result is more prominent for African American women but does not hold for African American business owners.
Financial counselors, planners, and educators should be aware and sensitive to these differences in order to
provide additional education as needed on how to effectively use electronic banking services in order to achieve
a greater degree of financial inclusion.

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