Modeling Millennials’ Adoption Intentions of E-banking: Extending UTAUT with Perceived Risk and Trust

Abstract

The rationale of this research is to analyse and observe the factors that persuade millennials’ acceptance, adoption and usage of e-banking services in the banking industry in India. This research used primary data gathered from millennials in India. The sampling technique used is judgment sampling. Statistical analysis is conducted using structural equation modeling. The study’s findings indicate that effort expectancy, trust, social influence, performance expectancy and perceived risk are the factors that impinge on millennials’ behavioural intention of e-banking. The study suggests that effort expectancy, trust, social influence and performance expectancy posit a positive association with the e-banking behavioural intention of millennials in India. On the contrary, perceived risk is in a negative association with the e-banking behavioural intention of the millennials. The study makes a novel contribution to the literature with reference to India, being a pioneer attempt to investigate the factors that affect e-banking acceptance by millennials in Indian banks by extending UTAUT with perceived risk and trust. The present study contributes to the literature on e-banking adoption in India by highlighting that trust plays a crucial role in Indian millennials’ intention to adopt e-banking technology in high-power distance country like India.