Attributes affecting the growth of online banking: a consumer perspective

Abstract

Technology in Indian banks is catching up fast with the developments around the world. This adoption not only allows banks to offer new types of banking and financial products, but also the highest level of services. The current paper focuses on the other side of the coin, i.e., the adoption of Internet Banking (IB) by the consumers. The paper delves into the trends in IB and delineates the factors that affect the use of IB by customers. The 19 attributes that were studied for IB adoption were reduced to seven factors. It was observed that the sought-after benefits – encouragement, ease and accuracy, convenience and control, lifestyle and social factors, and bank reputation – were the five most important factors. On the other hand, factors such as the lack of knowledge and trust, security and privacy issues and the lack of training and incentives, were found to act as major inhibitors in IB adoption.