Factors Influencing the Behavioural Intention to Adopt Internet Banking: an Empirical Study in India

Internet banking provides huge benefits to banks‟ in cost savings, improved customer relationships and differentiating their offerings from competitors. Although the Internet banking services were introduced in India for more than a decade ago, the adoption among the bank customers is still very low. This study aims to identify the factors that are significantly influencing the bank customers intention to use Internet banking services in India. The research proposed a comprehensive model called „Internet banking Acceptance in India‟, constructs of which were developed based partially on the Unified Theory of Acceptance and Use of Technology (UTAUT) and three additional variables as identified to be context-specific. The data presented in this study are based on 325 questionnaires collected from individual bank customers‟ in Hyderabad city. The empirical findings of the study confirms the relationships between the identified latent variables and their impact on the adoption of Internet banking services. The proposed model explained about 67% of the variance in behavioural intention to adopt the Internet banking in India. This study contributes to the literature by providing a new research framework for predicting Internet banking adoption in India and its findings provide useful insights for bank managers and policy makers in planning Internet banking promotion strategies.