Consumer Acceptance for IT Enabled Banking Services in Tier I Cities of India

Abstract

The transition of the Indian banking sector to a cashless society is creating many opportunities for technology investment in digital payments infrastructure. Many theoretical models have been laid to provide more insight on how technology advancements influence consumer intentions, attitude, and behaviour. The technology acceptance model (TAM) propose that perceived usefulness (PU) and perceived ease of use (PEOU) as norms that influence a person decision of how and when to use a new technology (Davis 1989). The theories that have been predominantly employed by most of the researchers are the theory of reasoned action (TRA) (Ajzen and Fishbein, 1980); the theory of planned behavior (TPB) (Ajzen and Madden, 1986); the technology acceptance model (TAM), which is originated and adapted from TRA (Davis, 1989); and more recently the technology readiness index (TRI) (Parasuraman, 2000). Though the former two of these models are universal, the last two are precisely for technology adoption and use. This research studies the readiness levels of customers through evaluating their attitudes of optimism, innovativeness, discomfort and insecurity towards ITeBS. The customers perceived value and behavioural intention is also evaluated, to find its impact on actual usage of ITeBS. The HBR study recommends the country needs more systemic changes with respect to transition from traditional method to digital, apart from government led digital-push (Chakravorti, Bhalla, and Chaturvedi, 2017). The reason for the same are cited as infrastructural issues (internet speed), culture and tradition (Paulson, 2003). Lastly, the study also clarifies the general notion of private banks outperform public banks when it comes to services. Where, it was found that there exists insignificant moderating effect between the type of bank ownership to influence behavioural indicators i.e., behavioural intention and Actual Usage of IT-enabled Banking Services. newline newline newline newline