A STUDY ON THE ADOPTION OF ONLINE BANKING WITH REFERENCE TO THE TECHNOLOGY ACCEPTANCE MODEL

Abstract

The Service industry has emerged to be the backbone of social and economic development in a country. In relation to the product sector, service has a vital role contributing significantly to the GDP (Gross Domestic Product) of the economy. One of the significant players in the service industry is the banking and financial services sector. Post liberalization, banking has undergone several reforms and today banks have become more competitive with the sophisticated nature of the services it offers. The arrival of the technology-based services is one reason. One among those services is Online banking where the customer has the privilege to perform his financial transactions and banking needs online via the internet. The customer seeks to enjoy the service as he can carry out the activities just by the click of a mouse. Invariably it becomes a prudent task for the banks to frame tactics for marketing such techenabled services. Thus it is necessary for the banks to know those attitudinal factors that lead to adoption of online banking by customers. Several behavioral models have been devised to study adoption, the most widely accepted being Technology Acceptance Model (RAM) devised by Davis et al (1989). This study attempts to determine the various factors of adoption by youngsters using the TAM constructs namely perceived usefulness and perceived ease of use.