Intention to adopt internet banking in an emerging economy: a perspective of Indian youth

Abstract

Purpose – The purpose of this paper is to understand the consumer’s intention toward internet banking adoption in Indian context by combining two theories; theory of planned behavior (TPB), technology acceptance model (TAM) and an additional construct, i.e. perceived risk. Design/methodology/approach – A questionnaire based survey was conducted to collect responses from young consumers (210 usable responses). Data were analyzed using structural equation modeling to evaluate the strength of relationship. Findings – The result shows that perceived usefulness, attitude, subjective norm and perceived behavioral control significantly influences the consumer’s intention to adopt internet banking whereas perceived risk failed to show any significant influence over intention to adopt internet banking. Research limitations/implications – The study is limited to young consumers (i.e. professional students) only. Further, the study concerns itself with consumer’s intention not actual behavior. Practical implications – The finding will be useful for bank officials for devising strategies and policies related to internet banking in the Indian scenario. Originality/value – The paper is one of the initial attempts in Indian context to understand the consumer’s intention to adopt internet banking by combining TPB and TAM theories.