Abstract
The percentage of mobile banking users is currently lower than the number of active internet users with smartphones in Indonesia. The current study extends the Unified Theory of Acceptance and Use of Technology2 (UTAUT2) by adding two important factors, perceived risk and observability. The purpose of this study is to investigate the factors influencing behavioural intention and use behaviour of Mobile banking by customers of Indonesian. Data was collected by conducting an online survey questionnaire completed by 360 respondents. The authors analysed the model through structural equation modelling LISREL. The results showed observability, performance expectation, hedonic motivation, facilitating conditions, habit as positive and significant of behaviour intentions. The perceived risk, and price value indicated negative and significant in explaining behaviour intention. Behavioral intention and experience has positive and significant to use behavior mobile banking Keywords : Behavioral Intention, Mobile Banking, Observability, Perceived Risk, SEM, Unified Theory of Acceptance and Use of Technology 2 JEL Classifications : C31, G02, G21 DOI: https://doi.org/10.32479/irmm.9292
Highlights
The use of digital technology especially the internet, has become a part of lifestyle in society, the growth of internet users in Indonesia in 2017 amounted to 143.26 million people, as much as 44.16% conducted internet activities using smartphones and 39.28% using a combination of smartphones and computers, as well as from the number of users who use the internet in the economic sector for new banking activities by 7.39% (APJII, 2017)
Mobile banking is a form of internet-based banking activity model through wireless devices and a service that enables bank customers to conduct banking transactions via smartphones, this mobile banking service can be used by using the menus available on the SIM (Subscriber Identity Module) Card, USSD (Unstructured Supplementary Service Data), or through applications that can be downloaded and installed by customers (OJK, 2015)
The sample selection is based on certain characteristics that are already known before, which are banking customers who have opportunity to use mobile banking and are domiciled in Indonesia
Summary
The use of digital technology especially the internet, has become a part of lifestyle in society, the growth of internet users in Indonesia in 2017 amounted to 143.26 million people, as much as 44.16% conducted internet activities using smartphones and 39.28% using a combination of smartphones and computers, as well as from the number of users who use the internet in the economic sector for new banking activities by 7.39% (APJII, 2017).Mobile banking is a form of internet-based banking activity model through wireless devices and a service that enables bank customers to conduct banking transactions via smartphones, this mobile banking service can be used by using the menus available on the SIM (Subscriber Identity Module) Card, USSD (Unstructured Supplementary Service Data), or through applications that can be downloaded and installed by customers (OJK, 2015). The use of digital technology especially the internet, has become a part of lifestyle in society, the growth of internet users in Indonesia in 2017 amounted to 143.26 million people, as much as 44.16% conducted internet activities using smartphones and 39.28% using a combination of smartphones and computers, as well as from the number of users who use the internet in the economic sector for new banking activities by 7.39% (APJII, 2017). The ease of use and the widespread availability of cellular communication has led to the phenomenal growth of financial transactions in rural and urban areas, especially in many developing countries in Asia (Misra and Bisht, 2013). The emergence of new competitors, which is financial technology companies have an impact on banking industry transactions. The percentage of internet users to access banking services is 7.39% and percentage of those conducting banking transactions on mobile banking has only reached 17.04% (APJII, 2017)
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