Predicting internet banking adoption in India: A perceived risk perspective

The emergence of internet banking has transformed the banking systems across theglobe. As a channel to market, internet banking allows geographical constraints to beovercome by offering various products and services at lower customer costs. Anunderstanding of the factors influencing customer adoption of internet banking is bothrelevant and timely. This study integrates technology acceptance model and perceived risktheory in understanding internet banking acceptance among Indian bank account holders.Specifically, this study categorizes perceived risk as external risk and internal risk, andexamines its influence on customer beliefs and adoption of internet banking. Using two-steppredictive analytics of structural equation modeling and artificial neural network analysis, the270 responses reveal that both external risk and internal risk inhibit customer acceptance ofinternet banking. More importantly, neural network analysis reveals that perceived ease ofuse and external risk are two important factors determining how well internet banking isaccepted by customers. The implications of the study findings and future research directionsare presented. Publisher Statement: This is an Accepted Manuscript of an article published by Taylor & Francis in Roy, SK, Balaji, MS, Kesharwani, A & Sekhon, H 2017, 'Predicting internet banking adoption in India: A perceived risk perspective' Journal of Strategic Marketing, vol 25, no. 5-6, pp. 418-438 on 16th March 2016, available online: http://www.tandfonline.com/10.1080/0965254X.2016.1148771