Factors Affecting Intention to Use on the Digital Banking Services Offered by Digital Banks in Indonesia

Abstract

The rapid advancement of technology has encouraged the emergence of digital banks, which provide all their services via mobile phone. The researchers are curious about the factors that influence the tendency of public acceptance of digital banks. The findings of this research are expected to provide insights for digital banks to pay more attention to these factors, in order to improve customer acquisition and financial performance. A model was developed based on the Technology Acceptance Model with additional constructs. Quantitative survey of 459 digital bank users from Indonesia was collected to assess the proposed framework. This research uses a partial least squares structural equation modeling technique to empirically validate the model. The results show perceived ease of use, perceived usefulness, attitude towards the service, and social influence have a positive effect on the intention to use. Meanwhile, trust has a negative effect on perceived risk and perceived risk has a negative effect on attitude towards the service. The limitation of current research is the data only based on questionnaires which was not evenly distributed across all regions in Indonesia. In addition, future research can be developed by including other variables that may influence customer interest in using digital bank services.