LITERATURE REVIEW
Internet banking channel has been found out to be the cheapest delivery channel for delivering the banking products and services once established (Sathye, 1999). The lack of awareness about the benefits offered by internet banking services and security concerns have been found out to be the impediments for the adoption of internet banking services by consumers.
The objective of internet banking is to provide financial services to consumers round the clock from any remote location across the globe. Hence, in order to be successful in providing these services, banks are keen to understand the reasons for adoption of internet banking services. This has led to the enormous research in the field of banking. Recent literature on banking industry reveals that several researchers have investigated the adoption of internet banking. It has been proved that internet banking channel is the cheapest delivery channel for banking products once established. Cost savings, time and freedom from place have been found to be the main reasons for the acceptance of internet banking (Blacket al., 2002). Several studies indicate that perceived usefulness and perceived ease of use are the crucial factors for any innovation or technology acceptance which was adopted from the technology acceptance model proposed by Davis (1989). Perceived usefulness has been defined as the degree to which a person believes that using a particular system would enhance his/her job performance (Davis, 1989). Whereas perceived ease of use is the degree to which a person believes that using a system would be free of effort Davis (1989).Customers comprehend internet banking transactions to be risky and more prone to fraud as there is a monetary value involved. Therefore, perceived risk has been found to be one of the major factors which hinder the acceptance of internet banking (Sathye, 1999; Tan & Teo, 2000).
Perceived risk may include financial, physical, or social risks which are associated with trying an innovation (Polatoglu et al., 2001). Bauer (1960) defines perceived risk as the risk involved in any action of a consumer that will produce consequences, which cannot be anticipated with certainty, and some of them are likely to be unpleasant. Walker et al. (2002) state that customers are worried that technology based service delivery systems will not work as expected. If the level of willingness to take risk exceeds the level of perceived risk only then consumers adopt internet banking services. The opportunity to try an innovation is an effective way of reducing perceived risk and hence may lead to adoption of the innovation. According to Rogers (1983), consumers might adopt an innovation if they are given the opportunity to try the innovation. Gerrard et al. (2003) defines trialability as the degree to which an innovation may be experimented with on a limited basis. Tan and Teo (2000) suggest that by trying a technology users feel more comfortable with the innovation and are more likely to adopt it.Relative advantage has been found to be an important element in the adoption of internet banking. It is often referred to as convenience, cost, time and effort savings with a decrease of discomfort in the adoption of an innovation (Rogers, 1983). Internet banking has been found to be hassle free and more advantageous compared to other banking options. (Blacket al., 2001). Derrick (2012), consumers consider not only the relative advantage afforded by currently available products, but also the relative advantage expected from future generation products. It is presumed that a consumer who perceived internet banking to advantageous over other banking options would adopt the services.
A high visibilty of the internet banking services in the media is termed as conspicuousness which has been derived from the model of diffusion of innovation (Rogers, 1983). Rogers (1983) considers visibility as observability and later Moore and Benbasat (1991) redefine it as two constructs namely visibility and result demonstrability. But, Blacket al. (2001) find that a simple visibilty has no effect on the adoption of any innovation.
In the present research, a new construct called conspicuousness which means a high level of visibility has been introduced. The utilization of the traditional theoretical models with minor modifications and variety of analyses in the Indian context makes this study unique. This study focuses on individual perspective and proposes to identify factors that influence adoption and use of internet banking services by customers of private sector banks in India.
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