Understanding the Key Drivers Behind User Selection of Digital Banks

Erwin Sugiharto; Viany Utami Tjhin

doi:10.34306/ijcitsm.v5i2.215

Authors

Erwin Sugiharto Bina Nusantara University
Viany Utami Tjhin Bina Nusantara University https://orcid.org/0000-0002-7320-9927

DOI:

https://doi.org/10.34306/ijcitsm.v5i2.215

Keywords:

Digital Banking, Performance Expectancy, Perceived Trust, Social Influence, UTAUT

Abstract

This study aims to understand the key drivers underlying the selection of digital banks by users in Indonesia. The research model uses a modified UTAUT (Unified Theory of Acceptance and Use of Technology) framework with additional variables of Perceived Trust, Fear Of Financial Lost, Perceived Online Identity Theft, and Security & Privacy Concern. A total of 434 respondents who use digital bank applications were analyzed using the PLS-SEM technique through SmartPLS 4 software. The results showed that the factors of Performance Expectancy, Social Influence, and Perceived Trust are the key drivers towards behavioral intentions. Meanwhile, the variables of Expected Effort, Fear Of Financial Lost, and Perceived Online Identity Theft did not show significant effects. The findings provide strategic insights to increase the adoption of digital banking services in Indonesia.

References

APJII, “Apjii in indonesia digital outlook 2022,” 2022. [Online]. Available: https://apjii.or.id/berita/d/apjii-di-indonesia-digital-outlook-2022_857

Kompas, “The euphoria of the quick election count only has a momentary effect on the jci,” 2023. [Online]. Available: https://www.kompas.id/artikel/en-euforia-hitung-cepat-pemilu-hanya-berefek-sesaat-pada-ihsg

The Asian Banker, “Digital banks target white spaces in the financial industry with niche strategies,” 2023, accessed: 2025-08-22. [Online]. Available: https://www.theasianbanker.com/updates-and-articles/digital-banks-target-white-spaces-in-the-financial-industry-with-niche-strategies

Seamoney, “App manager live front low code,” 2024, accessed: 2025-08-22. [Online]. Available: https://appmanager.seabank.co.id/seamoney/bke/app-manager/live/front low code/20240430/444724647615442088.pdf

BCA Digital, “Annual report 2022,” 2022, accessed: 2025-08-22. [Online]. Available: https://bcadigital.co.id/documents/AnnualReport2022.pdf

United Nations, “Sustainable development goals,” 2023, accessed: 2024-02-07. [Online]. Available: https://sdgs.un.org/goals

N. Anwar, A. M. Widodo, B. A. Sekti, M. B. Ulum, M. Rahaman, and H. D. Ariessanti, “Comparative analysis of nij and nist methods for microsd investigations: A technopreneur approach,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 2, pp. 169–181, 2024.

Bank Neo, “Laporan keuangan tahunan (audited) 2022,” 2022, accessed: 2025-08-22. [Online]. Available: https://bysl.pw/LKTBankNeo2022

Bank Jago, “Annual report bank jago 2022,” 2022, accessed: 2023-05-12. [Online]. Available: https://assets.jago.com/web-assets/public/Annual_Report_Bank_Jago_2022-New.pdf

Populix, “Consumer preference towards banking and e-wallet apps,” 2023, accessed: 2024-08-16. [Online]. Available: https://info.populix.co/articles/en/report/consumer-preference-towards-banking-and-e-wallet-apps/

N. A. Windasari, N. Kusumawati, N. Larasati, and R. P. Amelia, “Digital-only banking experience: Insights from gen y and gen z,” Journal of Innovation & Knowledge, vol. 7, no. 2, p. 100170, 2022.

E. A. Rheeder, Lecturer Acceptance of Online Learning at Private HEI: A Unified Theory of Acceptance and Use of Technology (UTAUT3) Perspective. University of Johannesburg (South Africa), 2024.

T. Hariguna, B. B. Madon, and U. Rahardja, “User’intention to adopt blockchain certificate authentication technology towards education,” in AIP Conference Proceedings, vol. 2808, no. 1. AIP Publishing, 2023.

´E. A. A. Cardozo, J. M. M. Christino, and A. C. P. d. Carvalho, “Digital bank accounts and digital credit cards: extending utaut2 to fintech’s services in brazil,” International Journal of Services and Operations Management, vol. 44, no. 2, pp. 238–269, 2023.

R. Jena, “Factors impacting senior citizens’ adoption of e-banking post covid-19 pandemic: an empirical study from india,” Journal of Risk and Financial Management, vol. 16, no. 9, p. 380, 2023.

M. Marikyan and P. Papagiannidis, “Unified theory of acceptance and use of technology,” TheoryHub book, 2021.

H. Gui, U. Rahardja, X. Yang, and Y. Yan, “Ability orientation or good character? moderated mediation mechanism to determine the impact of telepresence on consumer purchasing intention in cross-border e-commerce,” Frontiers in Psychology, vol. 13, p. 883101, 2022.

E. M. Abu-Taieh, I. Alhadid, S. Abu-Tayeh, R. Masa’deh, R. S. Alkhawaldeh, S. Khwaldeh, and A. Alrowwad, “Continued intention to use of m-banking in jordan by integrating utaut, tpb, tam and service quality with ml,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 8, no. 3, p. 120, 2022.

K. Mazayo, S. Agustina, and R. Asri, “Application of digital technology risk management models in banking institutions reflecting the digital transformation of indonesian banking blueprint,” International Journal of Cyber and IT Service Management, vol. 3, no. 2, pp. 130–143, 2023.

R. Sultana and N. A. Faisal, “The role of digital banking features in bank selection an analysis of customer preferences for online and mobile banking,” Available at SSRN 5049165, 2024.

A. Pambudi, R. Widayanti, and P. Edastama, “Trust and acceptance of e-banking technology effect of mediation on customer relationship management performance,” ADI Journal on Recent Innovation, vol. 3, no. 1, pp. 87–96, 2021.

P. Bhatnagr, A. Rajesh, and R. Misra, “A study on driving factors for enhancing financial performance and customer-centricity through digital banking,” International Journal of Quality and Service Sciences, vol. 16, no. 2, pp. 218–250, 2024.

B. Kaur, S. Kiran, S. Grima, and R. Rupeika-Apoga, “Digital banking in northern india: The risks on customer satisfaction,” Risks, vol. 9, no. 11, p. 209, 2021.

V. Chauhan, R. Yadav, and V. Choudhary, “Adoption of electronic banking services in india: an extension of utaut2 model,” Journal of Financial Services Marketing, vol. 27, no. 1, pp. 27–40, 2022.

A. Irimia-Di´eguez, G. Albort-Morant, M. D. Oliver-Alfonso, and S. Ullah, “Predicting the intention to use paytech services by islamic banking users,” International Journal of Islamic and Middle Eastern Finance and Management, vol. 17, no. 1, pp. 1–15, 2024.

P. Hille, G. Walsh, and M. Cleveland, “Consumer fear of online identity theft: Scale development and validation,” Journal of Interactive Marketing, vol. 30, no. 1, pp. 1–19, 2015.

A. B. Jibril, M. A. Kwarteng, R. K. Botchway, J. Bode, and M. Chovancova, “The impact of online identity theft on customers’ willingness to engage in e-banking transaction in ghana: A technology threat avoidance theory,” Cogent Business & Management, vol. 7, no. 1, p. 1832825, 2020.

F. A. Ogedengbe and Y. Y. Abdul-Talib, “Factors influencing electronic banking continuance usage intention in developing economies: A study of nigeria,” International Journal of Business Information Systems, vol. 35, no. 1, pp. 63–87, 2020.

Y. A. Soomro, “Understanding the adoption of sadad e-payments: Utaut combined with religiosity as moderator,” International Journal of E-Business Research (IJEBR), vol. 15, no. 1, pp. 55–74, 2019.

A. U. Hasanah, Y. Shino, and S. Kosasih, “The role of information technology in improving the competitiveness of small and sme enterprises,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 3, no. 2, pp. 168–174, 2022.

Y. Hanif and H. S. Lallie, “Security factors on the intention to use mobile banking applications in the uk older generation (55+). a mixed-method study using modified utaut and mtam-with perceived cyber security, risk, and trust,” Technology in Society, vol. 67, p. 101693, 2021.

M. Bouteraa, R. R. I. Raja Hisham, and Z. Zainol, “Challenges affecting bank consumers’ intention to adopt green banking technology in the uae: A utaut-based mixed-methods approach,” Journal of Islamic Marketing, vol. 14, no. 10, pp. 2466–2501, 2023.

E. Mogaji and N. P. Nguyen, “Managers’ understanding of artificial intelligence in relation to marketing financial services: insights from a cross-country study,” International Journal of Bank Marketing, vol. 40, no. 6, pp. 1272–1298, 2022.

A. T. To and T. H. M. Trinh, “Understanding behavioral intention to use mobile wallets in vietnam: Extending the tam model with trust and enjoyment,” Cogent Business & Management, vol. 8, no. 1, p. 1891661, 2021.

T. Ahnert, K. Assenmacher-Wesche, P. Hoffmann, A. Leonello, C. Monnet, and D. Porcellacchia, The economics of central bank digital currency. ECB Working Paper, 2022, no. 2713.

W. Ramadayanti and K. Kosasih, “The influence of financial performance on people’s business credit in banking companies for the period 2010-2019,” APTISI Transactions on Management, vol. 5, no. 1, pp. 73–78, 2021.

A. Williams, R. Widayanti, T. Maryanti, and D. Julianingsih, “Effort to win the competition in digital business payment modeling,” Startupreneur Business Digital (SABDA Journal), vol. 1, no. 1, pp. 83–95, 2022.

R. Sankaran and S. Chakraborty, “Factors impacting mobile banking in india: Empirical approach extending utaut2 with perceived value and trust,” IIM Kozhikode Society & Management Review, vol. 11, no. 1, pp. 7–24, 2021.

J. R. Mansa, S. A. Pratama, W. Wirdayanti, and D. S. Angreni, “Optimizing user interface of mbkm information system & academic services using design thinking method (case study: Tadulako university),” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 6, no. 1, pp. 34–50, 2024.

J. Hair and A. Alamer, “Partial least squares structural equation modeling (pls-sem) in second language and education research: Guidelines using an applied example,” Research Methods in Applied Linguistics, vol. 1, no. 3, p. 100027, 2022.

B. Lavanya and A. D. Rajkumar, “Adoption of digital innovations in rural banking of vellore district: Based on utaut model,” International Research Journal of Multidisciplinary Scope, vol. 5, no. 1, pp. 263–271, 2024.

V. Subrahmanyam, S. Kumar, S. Srivastava, A. S. Bist, B. Sah, N. K. Pani, and P. Bhambu, “Optimizing horizontal scalability in cloud computing using simulated annealing for internet of things,” Measurement: Sensors, vol. 28, p. 100829, 2023.

E. K. Penney, J. Agyei, E. K. Boadi, E. Abrokwah, and R. Ofori-Boafo, “Understanding factors that influence consumer intention to use mobile money services: An application of utaut2 with perceived risk and trust,” Sage Open, vol. 11, no. 3, p. 21582440211023188, 2021.

R. Salam, Q. Aini, B. A. A. Laksminingrum, B. N. Henry, U. Rahardja, and A. A. Putri, “Consumer adoption of artificial intelligence in air quality monitoring: A comprehensive utaut2 analysis,” in 2023 Eighth International Conference on Informatics and Computing (ICIC). IEEE, 2023, pp. 1–6.

E. DePoy, Introduction to research-e-book: Understanding and applying multiple strategies. Elsevier Health Sciences, 2024.