How does culture influence digital banking? A comparative study based on the unified model

Abstract

This study unravels the influence of culture on digital banking in Pakistan and China. The unified model (UTAUT-2) along with customer support was selected as a theoretical lens to cover the determining factors encompassing both the positive and negative aspects of digital banking adoption. The culture was used as a moderating variable to fix its influence on customers' intentions and usage behavior to go for digital banking. Using an online survey, 360 bank customers from Pakistan and 410 customers were selected from mainland China. Data were analyzed through smart-PLS using structural equation modeling. The study finds that improvement in performance, hedonic motivation, habit, and the customers' perception of receiving real-time support from banks were the crucial factors for Pakistani customers. Meanwhile, Chinese customers were attracted toward digital banking owing to societal influence, cost factors, habitual work, and banks’ mechanism for supporting their customers. The cultural effect was also significant in determining the ultimate use of digital banking. The article provides deeper insights guiding banks and regulators to smoothen the digitization of banking services in both the Pakistani and Chinese economies.