How do customers respond to digital banking products and services in New Zealand?

Abstract

Fast development in the technology and the intense competition have driven banks to spend considerable money on transforming from traditional banking business to digital banking business to sustain competitive advantage. Since the changing habits, customers are demanding new approaches to access financial services through both secured and unsecured digital channels. This study develops and tests a modified theoretical model based on the Unified Theory of Acceptance and Use of Technology (UTAUT) to analyse how customers respond to digital banking products or services in New Zealand from behaviour intention perspective. This study finds that the individuals’ behaviour intention towards digital banking products or services can be predicted from performance expectancy, effort expectancy, and service quality conditions. Besides, this study discovers that customer gender, age and experience are having moderating influence when determining the intention of using digital banking products or services. Study contributes to knowledge in the field of individual technology acceptance research. It demonstrates that customer satisfaction also plays a major role in the digital banking context.