Factors Affecting Adoption of Self Service Banking in Do it for me Indian Culture | Purva Kansal

This paper aims at finding the factors affecting adoption of self service banking while testing the validity of Technology acceptance model (TAM) in India. The study collects data from 314 respondents from tier 2 cities in India and uses Structural equation modeling to test the conceptual model. The results of the study indicated that the model converged with a additional path from personal contact to attitude, and a covariance between personal contact and perceived risk; technology discomfort and capability. The results therefore, indicated that TAM was only partially applicable in India i.e. Perceived ease of Use (PEU) and perceived usefulness (PU) do act as mediating variables for two significant factors which influence the attitude towards usage of self service banking technologies. However; need for personal contact (PC) was an added dimension which was found to be significantly and negatively influencing the consumer attitude to use self service banking. The results further indicated that as the perceived risk increased the need for personal contact increased among the respondents in terms of self service banking. The covariance between technology discomfort and capability further highlighted the need for companies investing in educating the customers about ?what if error was made scenario? and recovery systems. A focus on these added dimensions would lead to higher usage of self service technologies in India.