Exploratory Study of Internet Banking Technology Adoption

Introduction

Technology adoption study has become a crucial or significant measure for understanding success or effectiveness of evolving technologies. Revolutionary development of technology in the past 20 years has impacted individuals as well as businesses in a profound way. Adoption of technology in general and Internet Banking Technology (IBT) in particular leads to decrease in coordination cost and increase in efficiency of banking process. IBT is a radical technological innovation that has a potential to change the structure and nature of banking. (Chau & Lai, 2003) states that to sustain business competitiveness, more and more banks are transforming from their traditional approach of banking to technology supported banking. The literature has shown an increasing trend of electronic financial transactions over the internet. This same trend can also be found in India. The literature survey indicates that acceptance of internet banking among Indian customers is not as advanced when compared to their counterparts in other countries.

Review of these literatures indicates that there are not many studies on IBT Adoption in Indian scenario. The review shows that the factors considered in these studies were not adequate or sufficient to project a comprehensive model for IBT Adoption in India. Moreover, existing study on IBT adoption in Indian Context has shown little evidence of an integrated model for IBT Adoption. In this study, we define IBT adoption as the level of acceptance expressed by its customers towards Internet Banking Technology. This study proposes an integrated framework for IBT Technology Adoption.