Predicting Online Banking Adoption: Extension of Technology Acceptance Model with Psychographic factors

Abstract

It has been noted that users' attitudes towards and acceptance of a
new information system has a critical impact on successful
adoption of information system. Online banking is new
technology based, cost efficient, convenient and time saving
channel for the customers as compared to
traditional bank branches. However, it has been observed that
Indian banking customers are reluctant to adopt online banking
services. This paper aims to empirically examine the psychographic
factors that affect the adoption of online banking. Perceived
Usefulness, Perceived Ease of Use, Trust, Social Norms, Computer
Self-Efficacy, Personal Innovativeness, and Domain Specific Opinion
Leadership were examined to determine if these factors are affecting
online banking adoption. It integrates Technology Acceptance Model
with important Psychographic variables and the proposed model
showing the relationship between predictors and dependent
variable is tested. The results can be useful for banks' decision
makers to develop strategies that can increase the adoption of
online banking.