An Empirical Study Of Factors Influencing The Adoption Of Online Banking Services Among Indian Customers
Keywords:
Online banking; Technology acceptance; Trust; Perceived risk; Behavioural intention; Digital finance; Data analysis.Abstract
Online banking has become a central channel for financial transactions in India, yet many bank customers still conduct routine banking offline. This study empirically examines the factors that influence the adoption of online banking services among Indian customers. Drawing on the Technology Acceptance Model and the Unified Theory of Acceptance and Use of Technology, the study proposes a research model in which perceived usefulness, perceived ease of use, trust, perceived risk, social influence and facilitating conditions shape behavioural intention, which in turn predicts actual adoption. Primary data were collected through a structured five-point Likert questionnaire from 412 bank customers across urban, semi-urban and rural areas. The analysis comprised descriptive statistics, reliability and validity tests, Pearson correlation, multiple regression and logistic regression. All constructs exceeded accepted thresholds for Cronbach's alpha (0.85–0.90), composite reliability and average variance extracted. Perceived usefulness, trust, social influence and facilitating conditions had significant positive effects on intention, perceived risk had a significant negative effect, and perceived ease of use was not significant. The model explained 38.0% of the variance in intention (R² = 0.380), and intention was a strong predictor of adoption (odds ratio 3.37). Respondents were recruited through purposive sampling with quota targets for age, residence and bank type, and 412 of 450 questionnaires were usable. The findings suggest that banks should prioritise trust-building, risk communication and customer education rather than interface simplicity alone. Practically, these measures can be delivered at modest cost and offer a clear route to wider digital adoption.
Online banking has become a central channel for financial transactions in India, yet many bank customers still conduct routine banking offline. This study empirically examines the factors that influence the adoption of online banking services among Indian customers. Drawing on the Technology Acceptance Model and the Unified Theory of Acceptance and Use of Technology, the study proposes a research model in which perceived usefulness, perceived ease of use, trust, perceived risk, social influence and facilitating conditions shape behavioural intention, which in turn predicts actual adoption. Primary data were collected through a structured five-point Likert questionnaire from 412 bank customers across urban, semi-urban and rural areas. The analysis comprised descriptive statistics, reliability and validity tests, Pearson correlation, multiple regression and logistic regression. All constructs exceeded accepted thresholds for Cronbach's alpha (0.85–0.90), composite reliability and average variance extracted. Perceived usefulness, trust, social influence and facilitating conditions had significant positive effects on intention, perceived risk had a significant negative effect, and perceived ease of use was not significant. The model explained 38.0% of the variance in intention (R² = 0.380), and intention was a strong predictor of adoption (odds ratio 3.37). Respondents were recruited through purposive sampling with quota targets for age, residence and bank type, and 412 of 450 questionnaires were usable. The findings suggest that banks should prioritise trust-building, risk communication and customer education rather than interface simplicity alone. Practically, these measures can be delivered at modest cost and offer a clear route to wider digital adoption.
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