Diffusion of Internet Banking in India: An Empirical Study

There are many models to predict factors that influence the adoption of a technology. Among them this study uses the Technology Acceptance Model (TAM). The TAM provides a precise set of antecedents that can explain the intention to adopt internet banking, the technology in this study. According to the Technology Acceptance Model (TAM), perceived ease of use and perceived usefulness constructs are believed to be fundamental in determining the acceptance and usage of various IT. However, these may not fully explain the user’s behavior towards a newly emerging IT such as internet banking. This study proposed to extend the Technology Acceptance Model (TAM) by incorporating ‘Consumer trust on internet banking’ as a new factor that reflects the user’s security and privacy concerns in the acceptance of internet banking and its influence on an individual’s intention to adopt internet banking. Based on a sample of 655 bank customers, the results strongly support the extended TAM in predicting the intention of users to adopt internet banking. It also demonstrates the significant of ‘Awareness’ and ‘Computer Self-efficacy’ on usage intentions through perceived ease of use, perceived usefulness and perceived security.