Determinants of Young Consumers’ Intention to Use Internet Banking Services in India

Abstract

This article investigates the determinants of young consumers’ intention to use Internet banking services in India. The current research developed a theoretical model grounded on technology acceptance model (TAM) by incorporating additional variable such as trust, perceived risk, social influence and self-efficacy. The study collected a total of 155 usable responses through convenience sampling from university students aged between 18 and 36 years. Correlation and multiple regression analysis was employed to determine the underlying relationship between dependent variable (behavioural intention) and independent variables. The results revealed that perceived usefulness (PU), ease of use, trust, self-efficacy and social influence have significant positive influence on young consumers’ intention to use Internet banking, whereas perceived risk exerted significant negative effect. Among all these factors, perceived risk has major significant effect on intention, followed by PU, perceived ease of use and trust. Hence, bank practitioners should focus on increasing usefulness of Internet banking system and devise trust building strategies that would reduce consumers’ perceived risk and attract them to use Internet banking.