ACTIVE DRIVERS OF ADOPTION OF INTERNET BANKING

Abstract

Application of internet by banking sector in India has changed the definition of banking completely. The management of different banks has been making concrete efforts to facilitate the acceptance of i-banking by bringing out its benefits to the customers. This paper identifies the active factors that influence customers intention regarding use of internet banking in Himachal Pradesh  Data was collected from a sample of 120 respondents through a well structured questionnaire. The data was collected from Government employees of Shimla district of Himachal Pradesh by asking close ended questions regarding their attitude towards i-banking and their future intention about its use . For analysing and interpreting data in the present study, basic statistical tools, chi-square test (test of independence) and logistical regression analysis was used with the help of SPSS 16.0 version. Out of seven factors i.e., perceived risk, perceived usefulness,  perceived quality of service, Perceived cost, Perceived ease of use, trust and awareness, three significant factors i.e., perceived risk, perceived usefulness  and perceived quality of service have been identified that actively influence future adoption intention to adopt internet banking . Further the study exhibited that perceived usefulness and perceived quality of service positively influence the intention to adopt i-banking while perceived risk negatively affect the future adoption intention of i-banking. This  model has the overall predictability of classifying 76.7 % cases correctly and exhibited that 87.2 % customers are classified for adopting i-banking service whereas 57.1 % customers for not having intention to use it in futur