Antecedents of Automation Practices in Fostering Operational Efficiency in Selected Banks of Karnataka: A Study Utilizing TAM

Abstract

This study examines automation adoption in Karnataka\'s regional banks using the Technology Acceptance Model (TAM). Analyzing data from 156 banking professionals, it investigates how Perceived Ease of Use (PE) and Perceived Usefulness (PU) influence Behavioral Intention (BI) and User Satisfaction (SU). Results show PE strongly impacts both PU (?=0.611) and BI (?=0.865), while PU significantly affects BI (?=0.565). BI emerges as a key predictor of SU (?=0.779), confirming its mediating role. Three major adoption barriers are identified: inadequate infrastructure, resistance to change, and insufficient training. These obstacles limit automation\'s potential to enhance operational efficiency and service quality. The study offers practical recommendations: banks should prioritize user-friendly design and comprehensive training, while policymakers need to improve digital infrastructure and create supportive incentives. Theoretically, it extends TAM\'s application to India\'s regional banking context and suggests future research directions, including examining additional variables like trust, conducting cross-sector comparisons, and longitudinal studies. These findings provide valuable insights for financial institutions undergoing digital transformation, helping them implement automation technologies effectively while ensuring employee acceptance and satisfaction. The research contributes to both academic literature on technology adoption and practical strategies for digital transition in emerging banking markets.

Introduction

Automation is revolutionizing banking by improving efficiency, accuracy, and service speed, helping banks stay competitive in a digital world. While global banks rapidly adopt automation, Karnataka’s regional banks lag behind, continuing to rely on manual processes. This slow adoption hampers growth and competitiveness.

This study aims to explore the factors enabling and hindering automation adoption in Karnataka’s banks, using the Technology Acceptance Model (TAM) to examine how automation can enhance operational efficiency and be integrated into daily banking activities.

A review of literature highlights automation’s benefits—such as faster transactions, cost reduction, and better compliance—but also notes challenges like employee resistance, security risks, and technological gaps. Prior studies emphasize the importance of organizational adaptation, infrastructure, and training for successful automation.

In Karnataka, barriers to automation include poor technological infrastructure, lack of staff readiness, low awareness of automation’s strategic value, and resistance to change. These challenges lead to inefficiencies and poor customer experience, threatening the sustainability of regional banks.

The study underscores that addressing these issues through strategic planning, training, and supportive policies can enable banks to optimize resources, improve service quality, and gain competitive advantage in the evolving financial landscape.

Conclusion

The findings of this study carry important implications for both academic research and practical implementation. From a research perspective, the results reinforce and extend the Technology Acceptance Model (TAM) by demonstrating that Perceived Ease (PE) and Perceived Usefulness (PU) significantly influence Behavioral Intention (BI), which in turn is a strong predictor of user Satisfaction (SU). The mediating role of BI suggests that future studies should pay close attention to how intention acts as a bridge between perception and experience. Moreover, the strong indirect effects and validated model structure encourage further exploration of multi-layered relationships and the adaptation of this framework across various domains and user contexts. Practically, the study highlights that user-centered design is critical—systems that are easy to use and perceived as useful are more likely to be adopted and lead to higher satisfaction. Developers and service providers should focus on optimizing usability to enhance perceived usefulness, thereby increasing user commitment and satisfaction. Additionally, emphasizing the practical benefits of a system during onboarding or training can foster positive behavioral intentions. Organizations should consider behavioral intention as a strategic metric, shaping their user engagement, communication, and support strategies to reinforce long-term satisfaction and adoption.

References

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Copyright

Copyright © 2025 Raksha R, Prof. Anitha BM D Silva. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.