Analyzing the impact of consumer innovativeness and perceived risk in internet banking adoption: A study of Indian consumers

The purpose of this paper is to understand consumers’ intention to adopt internet banking. The study adopted the technology acceptance model with additional constructs (i.e. consumer innate innovativeness (II), domain-specific innovativeness (DSI) and perceived security risk (PR)).

The data were collected through a questionnaire-based survey (487 usable responses) from Indian consumers. A two-step SEM approach (i.e. measurement model and structural model) was used to analyze the data.

The findings show the significant positive influence of perceived usefulness, ease of use, attitude, II and DSI on consumer’s intention to adopt internet banking. The PR was found to have a significant negative influence on consumers’ intention to adopt internet banking, and DSI was found to negatively influence PR.

The study is limited to users of a particular region of India. Furthermore, the study limits itself in determining consumers’ intention only, not actual usage.

The study is a preliminary attempt to examine consumer’s intention to adopt internet banking in India by analyzing innovativeness and perceived risk.