Open banking boost and brake: an extended technology acceptance model

The concept of open banking emerged less than 10 years ago, but today, millions of people in Europe use open banking products. In particular, in the UK, more than half of consumers have used them at least once. In Azerbaijan, the Central Bank took the first step towards implementing open banking in 2018, creating an instant payment system. In October 2021, the Central Bank of the Republic of Azerbaijan presented the Open Banking Roadmap for 2021-2025. This study reflects the current situation of introducing the open banking model in Azerbaijan. The primary research objective is to provide an overview of the open banking landscape in Azerbaijan, enhance information accessibility, and position it as a subject for comparative analysis with open banking practices adopted in various global regions. The author used qualitative methodology, including content analysis and comparison methods, to assess the readiness of the current financial sector for the open banking approach, its features, the development of third-party providers (TPPs), and the interest in the open banking approach. The official website of the Central Bank of the Republic of Azerbaijan and the results of previous independent research are the sources of data on open banking in Azerbaijan that were used for the analysis. The analysis revealed a limited development of TPPs offering open banking services and deficiencies related to the structural aspects of explicit consent in Azerbaijan. Although the implementation of open banking in Azerbaijan is somewhat later than in other countries, the steps taken by the government indicate a prospect for the rapid development of the open banking model. An important step in this direction was the adoption of the Law "On Payment Services and Payment Systems" covering open banking, the acquisition of licenses by TPPs within the framework of the regulatory approach, support of open banking services, and API support. Azerbaijan's current open banking development follows the regulatory-based European model and the Berlin Group standard for API security. It is considered more secure than other market-based and hybrid approaches in ensuring customer safety in open banking. For the faster development of the open banking model in Azerbaijan, features such as ease of use, speed of transactions, security, elimination of forced dependence on multiple banking applications using TPPs, and the ability to control personal financial data features should be presented to the society with social networks, and other by means.

While the financial services industry wrestles with the challenges of change, our policymakers have an opportunity to take a lead role in defining Canada’s place within the global digital advice landscape. There are numerous creative and exciting solutions being discussed. What we haven’t seen a lot of are clientfacing holistic solutions – and what we don’t have is much time. This paper provides a series of steps for regulators and policymakers to follow that will improve innovation for incumbents and start-ups alike, all while providing an enhanced customer experience in financial advice. Firms are dealing with a looming perfect storm – fee compression, shifting demographics, unrelenting regulatory changes and an erosion in the number of human advisors as advisors who are part of the baby boom look to their own retirement. In this context, technology should be viewed as a savior, rather than a threat. We define a five-year aspiration for the application of digital technology to prudent and valued financial advice. There are several myths we were able to dispel as a result of our research, which we hope will form the basis for a discussion about what’s needed to facilitate a higher level of digital adoption. We nickname it “Next Generation Digital Advice.” The guiding principles and best practices encompass a holistic view of the client, objective data-driven recommendations, full transparency and ease of use. At a high level, the next generation of digital advice offers an opportunity for stronger client impact. It will see human advisors complemented by digital collaboration through technology that is not disruptive but generally proven, likely economical and widely available. Our current regulations per se are not a barrier to this next generation of advice – but our regulatory practices are. And just how much the industry will be disrupted matters because wholesale disruption of our financial services comes with wholesale economic risk. Policymakers play an important role in this transformation starting with a need to take the lead and get in front of the innovations in order to understand their full implications. We need to move swiftly towards open banking and improving on the benchmark set in Europe, break down regulatory silos to allow data mobility in furtherance of stronger client outcomes, update advisor proficiencies for a new normal where technical skills are automated and behavioural skills are required and de-risk the decision to innovate – for start-ups and incumbents alike.

This study investigates the foundations underpinning open banking models in Europe and identifies levers to improve their performance. Based on a review of the literature, it distinguishes four contexts for open banking: platformisation, data sharing, FinTech and regulation. The users of open banking services are surveyed to determine factors driving adoption and identify those entities that customers trust with their data and funds. The results indicate that the slow adoption of open banking services is in large part due to customers’ poor understanding of such services. The results also show the importance of usefulness and trust in driving adoption. These findings highlight the disproportionate attention being given to service provider infrastructure and the ecosystems of new entrants, and indicate that more consideration should be given to the actual users of open banking frameworks. In response to the findings, the study proposes a roadmap to mitigate the main weaknesses in current open banking models. The conclusions of this study are relevant not only to the development of open banking regulations in other territories, such as the USA and Canada, but also to the extension of data-sharing regulations to non-banking sectors.

This research is aimed to investigate potential users of open banking phase III in Taiwan. It also discusses the need and expectation of these users in connection with functions of open banking, such as online deposit, loan, credit card, payment and phone money transfer. The similarities between functions of open banking phase III and that of mobile payment give the idea for this research to conduct questionnaire survey on those experienced mobile payment users. Technology Acceptance Model (TAM) is used to measure the acceptance of those potential users for open banking. This study sampled from Taiwan mobile payment users by questionnaire survey and collected a total of 275 valid samples. Samples were grouped into two categories, “mobile payment heavy users” and “non-mobile payment heavy users”. By reviewing Technology Acceptance Model, it is hypothesized that heavy mobile payment users who are stimulated by open banking functions will have higher “perceived usefulness” and “perceived ease of use” toward open banking phase III in Taiwan. It will therefore lead to higher “behavioral intention to use”. The research results show that there is no positive impact for heavy mobile payment users on perceived usefulness toward open banking phase III, while there is a positive impact between heavy users and perceived ease of use toward open banking phase III. In addition, the results also indicate that higher perceived usefulness and perceived ease of use lead to higher behavioral intention to use.

The global economic impact of the construction industry cannot be overstated. The use of information and communications technology (ICT) offers a potential for massive cost savings and increases in productivity. Unfortunately, the US construction industry lags behind most other US industries in the implementation of ICT. This research sets out to understand what factors improve the use and adoption of ICT in the US construction industry by applying the Technology Acceptance Model (TAM) developed by Davis (1989). The TAM recognized a relationship with actual use of technology based on the premise of behavioral intent (BI) and intended use and that user perceived usefulness (PU) leads to intended use, which translates to actual use. The TAM also recognizes that user perceived ease of use (PEOU) supports the premise of PU enhancing intended use by increasing the PU. This research used independent variables from previous research to serve as a basis for establishing a benchmark for US construction firms. Seventy-six US construction professionals were surveyed for this study. The results showed that the US construction industry follows the TAM model in that if the technology is perceived to be useful it will be adopted, and this seems to be supported by PEOU. Application of this extended TAM in the US construction industry will help companies predict the successful adoption and use of ICT, allowing managers to make more informed decisions in the adoption process.

The increased use of mobile technology makes mobile banking services more engaging to explore among students who are becoming more technically knowledgeable. The aim of this paper is to investigate the factors that influence the adoption of mobile banking (m-banking) services by students. A quantitative approach was followed making use of questionnaires for the collection of data. The theoretical framework for this study was based on an extension of Technology Acceptance Model (TAM) TAM for mobile services to explore the factors that influence IT students’ adoption of m-banking. The constructs of TAM for mobile services used were Perceived Ease of Use (PEOU), Perceived Value (PV), Trust (T), Intention to Use (IU), Perceived Ease of adoption (PEOA) and Usage Behaviour (UB). Using multiple regression analysis, the results suggest that overall, the independent variables, trust, perceived value, perceived ease of use and social influence may account for 42% of the explanatory power for the dependent variable, intention to use m-banking. In addition, the results have shown some strong predictors (perceived value and trust) that influence students’ intention to use m-banking, suggesting that IT students do indeed consider adopting m-banking. The students also have some form of trust as shown by their continued usage of m-banking facilities. Attitudes of students towards m-banking are positive which motivates them to adopt or continue using m-banking. The paper provides an understanding about the dynamics between the factors that influence students to adopt mobile banking. DOI: 10.5901/mjss.2014.v5n7p451

The Revised Payment Services Directive (PSD2) came into force in all EU member states in 2018. One stated aim of this legislation was to create room for innovations in technology and business models in order to give account holders more choices and more direct control regarding access to their account information and ways of initiating payment transactions. Although an evolving array of new services and service providers has emerged over the past few years, the market remains in an early phase of experimentation. Nevertheless, information about the range of newly licensed service providers in the EU, and their business models, provides some insights into how the market is evolving and how it is reacting to recent regulatory and market infrastructure changes introduced through the PSD2 and open banking architecture. This paper reviews the population of payment institutions that have recently obtained authorisation to provide payment initiation or account information services in the EEA. It examines the (1) geographic reach, (2) company origins and investors, and (3) business function of these new actors to provide early insights into the changing economics of banking and payments.

Using technology acceptance model (TAM) as theoretical base, an extended TAM incorporating perceived security and perceived privacy as issues of perceived risk for adoption and promotion of e-banking services is conceptualised. Structural equation modelling (SEM) technique was applied to analyse the causal relationship among the constructs. Results of the model indicate that in comparison to perceived privacy, perceived security is the most important determinant which helps in reducing the risk perceived by the customers in adoption of online banking services. Further, the perception of low risk affects customers' behavioural intentions to accept internet banking technology as well as their intentions to spread positive word-of-mouth (WOM) about the service provider. Perceived usefulness and ease of use of the website is equally important but the perception of high risk and insecurity suppress the effectiveness of website usability. Henceforth, to promote the website, the financial institutions offering online services to their customers have to develop the mechanism that would ensure the security and privacy of financial data as well as the personal information provided by the customers.

Digital innovation has become an inexorable trend for manufacturing firms in the digital era. Though the motivations for digital innovation have been largely focused on in the literature, the barriers for manufacturing firms to implementing digital innovation remain underdeveloped. Actually, it is not that manufacturing firms are unaware of the benefits of digital technology, but the structural factors embedded in firms that hinder them from adopting digital innovation. In this context, this study aims to empirically investigate how and why customer concentration could be an obstacle to digital innovation in manufacturing firms, and thus provide insights for managers to break free from the trap of customer concentration and turn to embrace digital innovation. By conducting empirical analyses based on panel data of listed manufacturing firms in China between 2008 and 2019, we find that customer concentration has a significantly negative effect on the adoption of digital innovation in manufacturing firms. Moreover, the negative effect of customer concentration on the adoption of digital innovation is more pronounced when top executives have a relatively higher existing-oriented attention focus, and when the firm has spent more on relationship-specific investments. In addition, the presence of chief information officers (CIOs) can weaken the negative influence of customer concentration on the adoption of digital innovation.

BackgroundFor effective health promotion using health information technology (HIT), it is mandatory that health consumers have the behavioral intention to measure, store, and manage their own health data. Understanding health consumers’ intention and behavior is needed to develop and implement effective and efficient strategies.ObjectiveTo develop and verify the extended Technology Acceptance Model (TAM) in health care by describing health consumers’ behavioral intention of using HIT.MethodsThis study used a cross-sectional descriptive correlational design. We extended TAM by adding more antecedents and mediating variables to enhance the model’s explanatory power and to make it more applicable to health consumers’ behavioral intention. Additional antecedents and mediating variables were added to the hypothetical model, based on their theoretical relevance, from the Health Belief Model and theory of planned behavior, along with the TAM. We undertook structural equation analysis to examine the specific nature of the relationship involved in understanding consumers’ use of HIT. Study participants were 728 members recruited from three Internet health portals in Korea. Data were collected by a Web-based survey using a structured self-administered questionnaire.ResultsThe overall fitness indices for the model developed in this study indicated an acceptable fit of the model. All path coefficients were statistically significant. This study showed that perceived threat, perceived usefulness, and perceived ease of use significantly affected health consumers’ attitude and behavioral intention. Health consumers’ health status, health belief and concerns, subjective norm, HIT characteristics, and HIT self-efficacy had a strong indirect impact on attitude and behavioral intention through the mediators of perceived threat, perceived usefulness, and perceived ease of use.ConclusionsAn extended TAM in the HIT arena was found to be valid to describe health consumers’ behavioral intention. We categorized the concepts in the extended TAM into 3 domains: health zone, information zone, and technology zone.

This article examines the use intention of open banking technology in the context of an emerging economy like India using the theoretical framework of Technology Readiness and Acceptance Model (TRAM). To study the use intention for open banking in India, a primary survey was conducted among 945 customers using a structured questionnaire. The PLS-SEM technique was used to analyze the data. Findings – The results show that Optimism (OPM) contributes positively to the Perceived Ease of Use (PES) and Perceived Usefulness (PUF) of the open banking technology. Innovativeness (INO) of the customers is a significant predictor of PES and PUF. It was found that Discomfort (DCF) negatively contributes to PES and PUF; however, it significantly influences PES and has no significant influence on PUF. Insecurity (INT) is negatively significant to PUF and it has no significant influence on PES. It is observed that PES positively contributes to PUF. The results show that PES and PUF are significant predictors of Perceived Customer Value (PCV). PCVs contribution to the Use Intention (UNT) is significantly positive for open banking technology. The stickiness to traditional banking moderates the relationship between PCV and UNT for open banking.

This paper presents the SEPA Payment Account Access (SPAA) scheme, exploring its origins, associated benefits and challenges as well as the related regulatory context. The SPAA scheme covers the set of rules, practices and standards that allow for premium, value-added open banking services beyond the regulatory requirements. The revised Payment Services Directive (PSD2) describes the legal framework for open banking in Europe. It obliges account servicing payment service providers to provide — free of charge — dedicated interfaces to allow regulated third parties to access an account holder’s payment account with consent of the account holder. With this access, third parties are permitted to provide ‘basic’ open banking services regulated under PSD2. Not long after PSD2 was implemented, the Euro Retail Payments Board started exploring the possibilities for a potential SEPA application programming interface (API) access scheme for premium, valueadded services beyond PSD2. This resulted in several recommendations and a formal invitation to the European Payments Council (EPC), which subsequently developed the SPAA scheme. The SPAA scheme enables ‘premium’ payment services beyond the regulatory requirements of PSD2 and supports a wide variety of payments use cases, including online and in-store. It aims to drive open banking in the European Union (EU) in a way that unlocks and creates value while allowing for a fair distribution of value and risk between participants. SPAA is a pan-European scheme that underpins the EU’s objective of payments sovereignty, is supported by the relevant EU institutions and developed collaboratively in a multi-stakeholder setup by the retail payments industry. In addition to the SPAA scheme rulebook, a default asset remuneration model based on a cost calculation methodology has been developed to support the scheme. The SPAA scheme has the potential to further drive payments innovation and could be regarded as a stepping-stone towards open finance beyond payments as well as ‘open data’ beyond finance.

‘Open Banking’ is a digital finance innovation built upon customer data sharing between incumbent financial institutions and third party financial service providers. Open Banking is reshaping the banking sector through extending the reach and convenience of traditional banking services by opening up and leveraging consumer data. This disruption is both challenging and changing the nature of established banks and banking. This article provides a brief global survey of Open Banking regulatory developments as context for Australia’s new Consumer Data Right (CDR) regime. Spearheaded by the Open Banking movement, the CDR is the first step Australian policymakers have taken towards realizing the potential of open data capitalism. Australia is a jurisdiction, like the EU, that is increasing taking data protection and control seriously. We argue that emerging Australian Open Banking arrangements are both a measured response to digital financial developments, and another front in Australia’s ongoing commitment to uphold online consumer protection and empowerment.

The purpose of this paper is to investigate the factors influencing the adoption of mobile banking services in Chennai. The research model includes six constructs: perceived ease of use, perceived usefulness, relative advantage, quality of system, personal innovativeness and self-efficiency; each of which is measured with the item intension to use mobile banking. The constructs were taken from the technology acceptance model (TAM), diffusion of innovation theory (IDT), theory of planned behaviour (TPB), and extended technology acceptance model. Data analysis result shows that the constructs perceived ease of use, perceived usefulness, relative advantage, quality of system, personal innovativeness, and self-efficiency have a direct influence on the adoption of mobile banking in Chennai. This research provides banking institutions with significant information on the various aspects that need to be highlighted in their mobile banking strategies to increase the adoption rate of mobile banking services.

The purpose of this paper is to investigate the factors influencing the adoption of mobile banking services in Chennai. The research model includes six constructs: perceived ease of use, perceived usefulness, relative advantage, quality of system, personal innovativeness and self-efficiency; each of which is measured with the item intension to use mobile banking. The constructs were taken from the technology acceptance model (TAM), diffusion of innovation theory (IDT), theory of planned behaviour (TPB), and extended technology acceptance model. Data analysis result shows that the constructs perceived ease of use, perceived usefulness, relative advantage, quality of system, personal innovativeness, and self-efficiency have a direct influence on the adoption of mobile banking in Chennai. This research provides banking institutions with significant information on the various aspects that need to be highlighted in their mobile banking strategies to increase the adoption rate of mobile banking services.