DETERMINANTS OF USAGE OF DIGITAL BANKING CHANNELS BY RETAIL STORES IN CHENNAI

Abstract Digital Banking is a new word in today’s transformation of business. Digital banking is viewed differently by the stakeholders. For customers, it has enhanced the conveniences in payment to purchases. For the decision-makers it is one of the ways to improve the customer satisfaction by providing Information and Communication Technology (ICT) infrastructure. A digital banking technology such as credit/debit cards, Unified Payment Interfaces (UPIs), electronic banking has evolved over a period of time. Literature review indicated that despite of different efforts taken by government of India to promote digital payments rates of adoption is less in India this paper aims to conduct the study on the adoption of digital banking systems by unorganised retail stores in Chennai. The data is collected from 158 retail stores categorised as convenience stores (30 Nos), speciality stores (58 Nos), departmental stores (30 Nos) and supermarkets (40 Nos). The findings showed that perceived use, perceived ease of use, ICT and awareness are positively and significantly related to level of usage of digital banking channels and security risk is negatively and significantly related to level of usage of digital banking channels