Age effect on acceptance of internet banking in Tamil Nadu, South India

The research investigates positive factors influencing adoption of internet banking services in Tamil Nadu, South India. A research framework was developed based on the Unified Theory of acceptance and Use of Technology (UTAUT). One percent increase in the adoption will bring down 18 percent of the cost for the banks (Bhattercherjee, 2001) but adoption will increase the profits of the banks. Therefore, this study is conducted to help banks to increase profit in internet banking industry by recommending effective strategies to help banks retain existing internet banking customers and attract more new customers. Two hundred respondents in Tamil Nadu, South India had participated in a survey on their perceptions toward internet banking. Results show that although young respondents have behavioural intention to use internet banking services than others. Customers above the age group of 46–55 years are not influenced by trust for acceptance of technology. Recommendations were given to promote a safe, efficient and conducive environment for acceptance of internet banking.