Al-Barkaat Journal of Finance & Management
  • Year: 2025
  • Volume: 13
  • Issue: 2

From Campus to Cashless: Investigating Factors Driving Online Banking Adoption among Indian Students

1Assistant Professor, Department of Business Administration, Aligarh Muslim University, Centre Malappuram, Kerala

2Research Assistant, Faculty of Medicine, Department of Paramedical Sciences, Aligarh Muslim University, Aligarh

Online Published on 18 July, 2025.

Abstract

Online banking has transformed financial services by enabling users, particularly digitally savvy students, to conduct banking activities conveniently anytime and anywhere. This study investigates key factors influencing online banking acceptance among undergraduate and postgraduate students in India using an extended Technology Acceptance Model framework. The research focuses on four critical constructs: Perceived Usefulness, Perceived Ease of Use, Security and Privacy, and Quality of Internet Connection. Data were collected via a structured survey of 318 valid responses from university students and analyzed using exploratory factor analysis and regression techniques to assess the impact of these factors on online banking acceptance. Findings reveal that all four constructs significantly affect students’ acceptance of online banking, with security and privacy concerns emerging as pivotal. Quality of internet connectivity also plays a substantial role, underscoring the importance of reliable digital infrastructure. The study contributes to the literature by integrating technical, behavioral, and environmental variables, providing practical insights for financial institutions and policymakers to enhance digital banking adoption among younger demographics. The discussion highlights implications for designing secure, user-friendly, and accessible online banking platforms, emphasizing the need to continuously improve security measures and internet services to meet evolving user expectations.

Keywords

Online Banking Adoption, Technology Acceptance Model, Perceived Usefulness, Digital Banking, Student Users, Financial Technology, User Acceptance