Journal of Theoretical and Applied Information Technology 10 th March 2015. Vol.73 No.1 © 2005 - 2015 JATIT & LLS. All rights reserved . ISSN: 1992-8645 www.jatit.org E-ISSN: 1817-3195 12 USER ACCEPTANCE OF BANKING TECHNOLOGY WITH SPECIAL REFERENCE TO INTERNET BANKING 1 Y. AYSHA FATHIMA, 2 DR. S. MUTHUMANI 1 Research Scholar, Sathyabama University, Chennai . 2 Research Supervisor, Sathyabama University, Chennai. E-mail: 1 aashu_fathima@yahoo.co.in, 2 drsmuthumani@gmail.com ABSTRACT How to attract customers to use internet banking technology in a country like India, where use of such technologies by the customers in banking services is still moderately slow? Is indeed an enormous task for the service providers to build strategies to promote usage of internet banking. In this study, researcher has tried to identify few predominant factors and their influence on behavioural intention to adopt internet banking technology. This empirical study proposes nine research hypotheses derived from previous other studies made on users of banking technology. A survey was conducted among 319 users of Internet banking and the data was further analyzed using statistical tools. Multiple regression analysis was done to identify the predominantly influencing factors on user acceptance. The results of the study are identified perceived usefulness, trust, perceived credibility and perceived ease of use as the most influential factors for user acceptance of internet banking technology. Based on the results, managerial implications were made. Key Words: User Acceptance, Technology Diffusion, Banking Technology, Internet Banking. 1. INTRODUCTION Internet banking or online banking has been defined as “the service that allows consumers to perform banking transactions using a computer with an internet connection”. Pikkarainen et al. (2004) while defining Internet banking based on its utility defined it as “an Internet portal through which customers can use different kinds of services ranging from bill payment to making investments"[1]. Shih and Fang et al (2000) discussed how it is advantageous for the banks to go online, as it results in potential savings in the cost of maintaining a traditional branch network [2]. Giannakoudi (1999) states Internet banking system allows banks to expand their business geographically without investing in the establishment of new branches and, as a result, the customer base is broadened [3]. From user’s point of view, Turban et al. (2000) discussed how it is advantageous for the users to bank online because of the savings in costs, time and space it offers, its quick response to complaints, and its delivery of improved services .[4]. In spite of proved benefits, customers are still reluctant in adopting the technology. For banks, it has resulted only in additional costs over runs as they have incurred huge investment on technology but the benefits received from the technology is much less. Hence it becomes essential for the banks to examine customer attitude and to find why customers are restricting them to use the technology and factors which would influence them to adopt the technology. This study proposes to identify the factors which determine user’s acceptance towards internet technology. Dillion and Morris (1996) defined user acceptance as a person’s intentions to use a technology.[5].Various studies has been conducted in developed countries to explore the factors that influences the bank customer’s intention to use internet banking . But in a developing nation like India where technology diffusion is still at is nascent stage, research has to be undertaken to identify the prominent variables that influences diffusion of technology. Solomon et al (2013) in his conceptual paper reviews the extensive literature on the technology acceptance model (TAM) and explores the factors contributing to the consumer’s acceptance of electronic banking transactions. Trust, financial security, information quality, time