Factors Affecting the Acceptance of Self-Service Technologies in the Indian Banking Sector

Abstract

India has witnessed a surge in the acceptance of Self-Service Technologies (SSTs) in the banking sector, driven by events such as the 2014 demonetisation and the global COVID-19 pandemic, as well as government encouragement. This study delves into the determinants shaping the acceptance of SSTs in the Indian banking landscape. Utilising the Technology Acceptance Model (TAM) as a foundation, the theoretical model encompasses perceived ease of use, perceived usefulness, perceived self-efficacy, perceived risk, and perceived social influence as independent variables. The dependent variable under scrutiny is customers’ behavioural intention towards SSTs in banking in rural India. Employing SEM using Smart PLS4, the study analyses data from 320 rural banking customers in India. The results highlight the significant impact of perceived ease of use and perceived usefulness on customers’ behavioural intention towards SSTs in banking. However, the study does not find support for the moderating effects of gender and marital status on customers’ behavioural intention towards SSTs in banking. Further exploration of path coefficient variances demonstrated that the impact of perceived ease of use and perceived usefulness on customers’ behavioural intention towards SSTs in banking was more pronounced among males and married people. The insights garnered from this study offer valuable implications for financial institutions, consumers, businesses, and researchers aiming to promote SSTs in the Indian banking system.

Keywords: Self-Service Technology, Technology Acceptance Model, Behavioural Intention, Structural Equation Modelling, Banking

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