Internet Banking in India A Model for User Acceptance

Abstract

Internet banking is an alternative service delivery channel providing banks several advantages, including cost reduction, market differentiation, streamlining of work processes, increased sales, increased reach, increased loyalty and opportunity to attract new customers. Internet banking channel service delivery for the customer is a help yourself model, offering anytime, anywhere access to a broad range of banking products and services. Banks made huge investments to develop and promote internet banking, but this service delivery channel remains underutilised. The intention behind this research was to address the shortcoming of the limited research on internet banking adoption in India, by conducting a comprehensive study for finding the reasons and factors responsible for the low usage of the internet-banking channel in India and, which may enable banks to take corrective steps to increase usage of the internet-banking channel. newlineThis study used a mixed method research approach, and examined the research problem from a broader perspective, by finding factors that drive internet usage. It explored features of the banks websites, conducted interviews with bank senior leaders, employees, non-users and users of internet banking, found relationships between the website traffic and the financial performance of banks, conducted a quantitative study to determine employee s perception about internet banking and undertook a study to find factors that enhance satisfaction levels amongst the internet banking users. The study finally extended the Technology Acceptance Model (TAM) by including new constructs taken from existing well-grounded theories and examined the robustness of the model to predict intention and usage. TAM and its augmented version were subsequently subjected to invariance tests to determine the moderating effects of the demographic variables on the relationship between the variables in the model. newline