Antecedents Of Online Banking Adoption – An Empirical Study In An Emerging Economy | Sanjeev Verma & Tanmay Kumar

The banking sector is witnessing a fast paced change, as the global economy extends and progresses towards institutional and market completeness. One of the key reasons for such changes is, transcendental technology is transforming business processes into a technology oriented system. Self service banking channels like mobile banking and electronic banking have improved the reach and speed of service with less infrastructural needs. As the infrastructural need for online banking is minimal, it is a profitable proposition for both banks as well as the customers. Emerging economy like India is pushing for a cashless economy and thus, online transactions become inadvertent. But the biggest impediment for the banks is to overcome the psychological inertia of the common man who has a skeptical view towards the risks associated with online banking. Thus, it is important for banks to understand customer behavior for seamless adoption of online banking. The present study is an attempt to study the drivers of online banking adoption and offer a strategic roadmap for smooth transition from an offline channel to an online channel. Established models like TAM and TRI have been used for hypothesis development, and multivariate analysis has been used for testing the model. The findings suggest the importance of internet connectivity(IC), prior information(PI), perceived usefulness(PU), perceived ease of use(PEU), and security and privacy issues (SP) for the smooth adoption of e-banking. Policy makers and bank management should try to incorporate these features in service bundles, to garner a more positive response towards e-banking.