Cyber Banking in India : A Cross-Sectional Analysis Using Structural Equation Model

This paper addresses the factors that affect the user acceptance of cyber banking information systems in India. The paper also presents a cross sectional analysis of cyber banking usage among the Indian public and private sector banks. The data was collected through a structured questionnaire administered on the cyber banking users of both public and private sector banks of India. The data was first analyzed with principal component analysis through which a Structural Equation Model was developed. Using principal component analysis, five factor — Effectiveness and Trustworthy (EFF&TW), Intend to Use (ITU), Usage Constraints (USC), Easy to Use (ETU) and Accessibility (ACC) — were extracted. The extracted factors were further regressed using OLS regression. The results reveal that out of five factors, the first three factors, i.e., EFF&TW, ITU, USC, consisting of 17 variables, were highly significant at 99% level, which contribute maximum to the overall satisfaction of the customers. The results also reveal that the difference between the overall satisfaction level of the customers of private and public sector banks is less significant as per the regression value