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A Study on Factors Influencing Young User’s Online Banking Channel Usage in India

Journal of Commerce and Accounting Research

Volume 1 Issue 3

Published: 2012
Author(s) Name: Kalaiarasi H, Srividya V
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Abstract

Online banking is a new technology based, cost efficient, convenient and time saving channel for the customers as compared to traditional bank branches. However it is observed that Indian banking customers are reluctant to adopt online banking services. Maintaining a banking customer is more important than acquiring new customer (Bhattacharjee, 2001). Hence, this study addresses the influence of factors proposed by technology acceptance model along with risk and user’s online efficacy to explore the actual usage of young online banking users in Tamilnadu, India. The result shows that, youngsters online banking channel usage is positively influenced by their online efficacy, perceived ease of use and perceived usefulness. The risk associated with online banking channel also negatively influencing the actual usage of the online banking users in India.

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