Effect of Perception on Adoption of Internet Banking:A Review of Literature

Internet banking allows customers of a financial institution to conduct financial transactions on a secure website operated by the institution. With the rapid and significant growth in electronic commerce, it is obvious that Internet banking and payments are likely to advance. However, it has raised many public policy issues before the banking regulators and government agencies. Interestingly, reliable and systematic information on the scope of Internet banking in Indian context is still not sufficient, particularly what it means to the consumers and the bankers. There is a need to understand the perception of the consumers towards the adoption of internet banking. But the research in the perception of internet banking is scarce and partial. This paper attempts to accumulate literature in order to understand the effect of perception of the consumers on adoption of internet banking. The literature reviewed provides underlying patterns of relationship between internet banking and its influencing factors. Such understanding is relevant for academicians and researchers for furthering the work in this field. The insight into the previous studies, considered for this paper is discussed.