Adoption of internet banking and consumer banking behavior

Pages: 1671-1675
Tarannum Mohan (Department of Management, Punjabi University Regional Centre for Information Technology & Management, Mohali, Punjab)

An attempt is being made by banks to contribute to green banking by cutting down on carbon footprints from its routine branch banking operations. Since sustainability is the need of the hour, banks have taken up on the green initiative by making a switch over from paper based in-branch banking to virtual, online banking. This is the best and the simplest strategy available and used by banks. It is sustainable and also cost effective for the banks. Banks need to push the usage of online, paperless channel for which it becomes imperative to understand the factors affecting the customers’ perception to adopt online banking. In order to make the customers adoption of online banking delivery channels from physical branch banking smooth, this study has made an attempt to find which attributes a user considers significant while evaluating a banking service involving both delivery channels. Also, the factors which would result in adoption of internet banking and their relation with consumer online banking behavior were studied. The results of the study indicated that increased trust, usefulness, convenience and ease-of-use are primary factors that influence individuals’ usage of online banking over physical banking. The relationship between two categories of factors revealed that users’ perception of increase status and satisfactory fulfillment of needs significantly influence customers’ internet adoption behavior.