Factors Influencing Customers' Intentions to Use Internet Banking : Model Development and Test

Although Internet banking provides many benefits and proves to be advantageous for both banks and their customers, there are still large number of customers in India who refuse to change from traditional banking channels to this technology based channel for various reasons. Many research studies have been conducted to examine the factors that explain bank customers' intention to use Internet banking, but few have developed a model to statistically explain the interactions among these factors and how they influence customers' intention to use this technology in India. The purpose of this study is to propose and test a model to explain bank customers' behavioural intention to use Internet banking services in India. The research model has been empirically tested based on responses of 325 bank customers in Hyderabad city, using structural equation modeling approach. Results of the study revealed a good model fit and most of the hypotheses formulated in this study were supported. This study contributes a comprehensive and robust research model, highlighting the significant predictors of customers' intentions to adopt Internet banking services. The banks should make their customers feel how Internet banking services will be more useful or easy to use, more trustworthy, and less risky to improve their intention to use Internet banking services in India