Influence of Technological, Social, and Individual Factors on Security and Privacy Take-up of Digital Banking

Abstract

Digital bank applications have significant market potential in Indonesia given that bank penetration has not been comprehensive in Indonesia. However, this also comes with potential issues, especially data security and privacy issues. This study uses communication privacy theory and expectation-confirmation theory to examine the influence of technological, social, and individual factors on user perceptions of security and privacy and examines the effect of security and privacy perceptions on the intention to continue using digital banking applications. The authors used a Covariance-based structural equation modelling and got 421 valid respondent data from the data collection phase that was conducted for 22 days from September 17, 2021 and ending on October 8, 2021. The outcome indicates that perceived mobile transaction security affects perceived mobile app security and perceived mobile app security affects the intention to continue using digital banking apps. Furthermore, the perceived effectiveness of privacy policy, social influences, and perceived privacy awareness affect the perceived privacy risk. The results of this study provide insights for users of digital bank applications and are expected to contribute to digital bank research, especially in Indonesia. The results may also be used by bank and digital bank app developers to improve app security and take further measures to minimize user privacy risks.