Application of the Technology Acceptance Model (TAM) in the Context of NBFC Customers

This study investigates how the Technology Acceptance Model (TAM) and its extensions can explain and predict the adoption of digital services offered by Non‑Banking Financial Companies (NBFCs) in India. Central to TAM are two key user perceptions: Perceived Usefulness (PU)—the belief that a technology enhances performance or convenience—and Perceived Ease of Use (PEOU)—the belief that using the system is effort‑free. These constructs drive Behavioral Intention (BI), which precedes actual use. To contextualize TAM within the NBFC sector—which primarily serves underserved and financially vulnerable populations—this research incorporates additional factors such as Trust, Perceived Risk, Subjective Norms, and Facilitating Conditions. Trust captures users’ beliefs in institutional reliability and data protection; Perceived Risk reflects fears of privacy breaches or hidden charges; Subjective Norms cover the influence of family or social circles; and Facilitating Conditions include factors such as smartphone access, digital literacy, and support systems. Based on these constructs, we formulate a conceptual framework in which PU, PEOU, Trust, Risk, and Social Influence affect BI, and BI in turn predicts actual usage behavior. Facilitating Conditions are postulated to moderate the translation from intention to action.