Socio-Economic Challenges of Digital Banking Adoption: The Impact of Perceived Usefulness, Ease of Use, and Self-Efficacy

Purpose: The banking industry is one of the service industries that contributes to national income and serves as an intermediary institution to accommodate public funds and channel them back to productive economic activities. This study will look into the factors that influence customers' intentions to use digital banking and utilize it to their advantages and future advancements. This research uses TAM (technology acceptance model) as framework to explain the intention to adopt digital banking phenomenon. In addition to TAM components of perceived ease of use and perceived usefulness, this research also put perceived risk, trust, and inconvenience into the TAM framework. 
 Design/methodology/approach: This study using quantitative descriptive research design with conclusive research. This study use non-probability sampling with judgmental technique to 140 respondents that meet the research sampling criteria. IBM SPSS version 24 is used for multiple regression data processing and analysis.
 Findings: The findings show that perception ease of using, perceived usefulness, and perceived risk have no effect on intention to use digit banking. Furthermore, the findings confirm the positive influence of trust and convenience on the intention of using digital banking.
 Research limitations/implications: The study used Google Forms, which limited respondents' time to answer, and respondents' opinions may be prejudiced. This study's sample size reduced respondents' general representation, and the results were limited to one country. Future academics may add others variables that affect digital banking adoption into the framework. The researchers also recommend bigger sample sizes with a more diverse demographic profile of respondents.
 Practical implications: Digital banks might emphasize trust and convenience to attract new consumers. Delivering on promises will build trust in services. Digital bank providers can also emphasize their technology's convenience, which allows clients to do financial transactions anywhere and anytime.
 Originality/value: This study will serve as a reference for digital bank providers in promoting the usage of digital bank services in order to accelerate Indonesian digital bank adoption, which is still lagging behind that of other Asian countries.
 Paper type: Research paper

By incorporating the trust variable as a mediator in the relationship between perceived ease of use and perceived usefulness of using digital banking services on intention to use digital banking services and location—research in the special region of Yogyakarta—this study aims to analyze banking customers’ tendencies to use digital banking services using the technology acceptance model (TAM) theoretical approach. This research’s type and source of data is quantitative with primary data. Questionnaires were distributed as part of a survey procedure to collect data for this study. Using sample data from 208 respondents and the structural equation model (SEM) analysis tool, he concluded that while users’ perceptions of the usefulness and ease of use of digital banking services have no bearing on each other, their perceptions of the ease of use of these services has a significant impact on their trust in them. It has a significant impact on user trust in digital banking services, which in turn has a significant impact on users’ intention to use digital banking services; perceived ease of use of digital banking services has no significant impact on users’ intention to use digital banking services; on the other hand, perceived usefulness of digital banking services has a significant impact on users’ intention to use digital banking services; trust in digital banking services mediates the relationship between users’ intention to use digital banking services and perceived ease of use of digital banking services. Keywords: perceived ease of use, perceived usefulness, trust, intention to use, digital bank

Digital banking in Malaysia has seen significant growth in recent years. The government actively promotes digital financial services and regulatory bodies supporting fintech innovation. However, the factors influencing Malaysians' behavioural intention to use digital banking services still need to be discovered. Hence, this study investigates the factors influencing Malaysian customers' willingness to use digital banks. The study examined the factors influencing the attitude and intention to use digital banking in Malaysia among 562 commercial bank customers using the Technology Acceptance Model. The findings revealed that perceived ease of use has a positive and significant effect on perceived usefulness; perceived ease of use and perceived usefulness both have a positive and significant effect on attitude; and perceived trust has a positive and significant direct effect on attitude and intention. Finally, it was discovered that attitude positively and significantly mediated perceived trust and intention to use digital banking among bank customers. Hence, this study has proven that all seven hypotheses were supported. The study found practical implications that policymakers, bankers, and fintech players could use in creating a policy encouraging Malaysians to use digital banking services. Hence, it will assist the government and financial institutions towards digital banking development.

This study investigates the factors influencing the acceptance and use of digital banking services in Saudi Arabia, applying the technology acceptance model. Data were collected from 406 respondents using a structured survey to measure perceived usefulness (PU), perceived ease of use (PEOU), Trust, social influence (SI), perceived risk (PR), behavioral intention (BI), and actual usage. The results showed that PU, PEOU, Trust, SI, and BI significantly positively affected digital banking usage, while PR had a significant negative impact. The findings align with existing literature, reinforcing the importance of user-friendly interfaces, robust security measures, and SI in driving digital banking adoption. Practical implications include enhancing digital banking platforms' usability and trustworthiness to boost user engagement. Future research should consider longitudinal studies and explore the impact of emerging technologies on digital banking adoption. KEYWORDS digital transformation, adoption behavior, perceived usefulness (PU), perceived ease of use (PEOU)

Research aim: The purpose of this study is to determine the factors that influence the adoption of digital banks based on the concept of the Technology Acceptance Model (TAM) in gen-Z. Methods: The data analysis technique uses Structural Equation Modeling (SEM) inferential analysis with WarpPLS 8.0. Research Finding: The results of this study revealed that perceived ease of use (PEOU) and perceived usefulness (PU) have a positive and significant on attitudes (ATT). PEOU indirectly has a positive and significant on PU. PU has a positive and significant effect on behavioral intention (BI). ATT directly has a positive and significant on BI in digital bank adoption. Theoretical contribution: TAM can be applied to measure gen-Z behavior in digital bank adoptions. Practitioner/Policy implication: Digital bank management should consider usability and user-friendliness factors as stimuli for attitudes that generate behavioral intentions towards digital bank adoption, specifically among Gen-Z. This generation serves as a potential target market for digital banking services marketing. The results of this study can drive innovation in digital banking products and services, enhancing operational efficiency for banks. Research limitation: The results of this study are only specific to gen-Z and cannot be generalized

As information technology advances, societal demands increase, and the features and sophistication of smartphones increase along with that, banks must adapt to meet current demands. For Indonesians who are used to using cash, digital banking will be a new digital transformation. There is no information regarding the variables that might influence the behavioural intentions of the Indonesian people in using digital banking services. In particular, among Millennials and Generation Z in Indonesia, this study investigates the relationship between perceived ease of use, perceived usefulness and trust that influences the intention to use digital banks based on the Technology Acceptance Model (TAM) using smartPLS software and data been collected from a survey conducted on 170 individuals from the Millennial and Generation Z demographics. The results of this research analysis show that perceived ease of use and usefulness greatly influence trust in using digital banking services. Perceived usefulness and trust significantly affect interest in using digital banking services compared to perceived ease of use. Therefore, for customers to truly understand the benefits of using digital banking services, improving their perception of the service's usefulness in their daily lives is essential

Research aims: This research aims to analyze active digital banking users' perceptions of bank operational risks in providing digital banking services.Design/Methodology/Approach: This research design used a quantitative approach. The population in this study was banking customers who used Internet banking services. The sample taken in this study was 240 respondents from banks in the Banyumas Regency, Central Java, Indonesia. The method performed was purposive sampling. It used five banking risk management indicators.Research findings: Most people in the Banyumas region did not agree that Internet banking had high operational risks. As such, banks need to look at other operational risks, such as service disruptions, outsourcing failures, and internal fraud.Theoretical contribution/Originality: The Technology Acceptance Model (TAM) is an information system theory that models of how users want to accept and use technology. This model proposes that when users are offered a new system, several factors influence their decision about how and when to use the system, especially regarding the usefulness, ease of use, and external factors on beliefs, attitudes, and purpose of use.Practitioners/Policy implications: This research implemented digital banking and customer perceptions of bank operational risks in providing digital banking services because they are essential for understanding the digital banking industry. Research limitations/Implications: This study only used five indicators of banking operational risks, consisting of process, human, system, external, and legal. Other aspects, such as financial, marketing, and others, have yet to be included in this banking risk research indicator. For further research, it is suggested to add research variables, not only focusing on Internet banking applications but also on other digital banking products, such as mobile banking, phone banking, and SMS banking.

The growth of internet users in Indonesia has experienced a significant increase year by year, reaching 78.19% of the total population in 2022-2023. This indicates a broader penetration of the internet among Indonesian society. The national digital banking transaction value shows an increasing trend, reaching Rp5,098.6 trillion in August 2023, reflecting the growing adoption of digital financial services in Indonesia. This increase is supported by the ease of access offered by banks and online financial management, in line with the preferences of the digital era's growing generation, thus Generation Z quickly and comfortably adopts digital banking services. This brings the potential for greater financial inclusion among the younger generation.This study employed a quantitative approach with a causal purpose, applying the Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB), and Theory of Reasoned Action (TRA). The dependent variable (financial inclusion), the intervening variable (ease of use), and the independent variables (financial literacy, digital literacy, and social capital). This study, which includes 200 Bandung City-based Generation Z digital bank customers, uses the Structural Equation Model (SEM) based on Partial Least Square (PLS) as its analytical tool. The study's findings demonstrate that Generation Z's digital bank customers in Bandung City already have very high levels of social capital, financial inclusion, digital literacy, and ease of use. Furthermore, it was shown that the effects of digital literacy, social capital, and financial literacy on financial inclusion might be moderated by simplicity of use. Financial inclusion is also significantly impacted directly by social capital, digital literacy, and financial literacy. It is intended that this research will provide a greater understanding of the variables impacting Generation Z's financial inclusion and how those characteristics may affect policies aimed at boosting the availability and use of financial services in the digital age.

This research examines the key determinants that shape the micro entrepreneurs attitude towards digital banking services in Nepal. The inquiry was conducted through the lens of the extended Technology Acceptance Model (TAM) by including trust and resistance to change as additional variables in the model. Since this study has been conducted for micro entrepreneurs (Safa Tempo drivers, beauty parlor owners, and street vendors) who have low level of education, low technical proficiency, and limited exposure to digital products, understanding their trust levels and propensity for change regarding digital banking is deemed crucial. This study found a significant positive relation between resistance to change and attitude towards digital banking. However, perceived usefulness, perceived ease of use and trust were not found to be positively associated with attitude towards digital banking. The findings of this study will enable Nepalese banking institutions to develop awareness programs aimed at educating and motivating micro entrepreneurs to embrace digital banking, thereby clarifying the benefits, addressing issues of trust and convenience, and ultimately fostering favorable attitudes and enhancing adoption rates. The study outcomes will also contribute to the existing literature by providing nuanced insights about the micro entrepreneur’s attitude towards digital banking services.

The rapid advancement of information and communication technology has transformed interactions with financial institutions, particularly through digital or branchless banking. Bank Central Asia (BCA), a leading private bank, has introduced Blu BCA Digital, a digital banking application designed to meet the growing demand for convenient banking solutions. Despite its promising features, Blu BCA Digital faces significant challenges due to the increasing number of competing digital banking platforms. This study aims to assess users' intentions to adopt Blu BCA Digital using the Technology Acceptance Model (TAM). A quantitative approach was employed, utilizing questionnaires distributed to 159 Blu BCA customers in DKI Jakarta, with data analyzed using SmartPLS 3.2.9 software and the Partial Least Squares (PLS) method. The results indicate that perceived ease of use and perceived usefulness positively and significantly affect users' attitudes toward the application and their behavioral intentions to use it. Furthermore, attitude toward use significantly influences behavioral intention, and it partially mediates the relationship between perceived ease of use, perceived usefulness, and behavioral intention to use. Based on these findings, several strategic implications for digital banks are proposed. Enhancing user experience by addressing technical issues and optimizing interface design, demonstrating clear benefits to increase perceived usefulness, and proactively managing security concerns are critical. Additionally, providing digital literacy training can overcome barriers to adoption. These strategies are essential for improving user satisfaction and adoption rates. The study concludes that understanding user perceptions through TAM is crucial for developing effective digital banking strategies and suggests that future research should explore additional factors influencing digital banking adoption and consider longitudinal studies to track changes in user behaviors over time.

Digital banking can make banking transactions easier in daily life. However, the presence of technology does not seem to be welcomed. This is due to the unpreparedness of technology for digital banking technology. The target respondents are millennial generation users in Indonesia who use digital banking services during post-corona virus. The sample selection using random sampling with 422 respondents. The data analyses were performed using SEM-PLS. The results show that Optimism, Discomfort, and Insecurity affect the acceptance of digital banking based on perceived ease of use and usefulness. However, Innovativeness has no connection on perceived usefulness. This is because post-covid conditions, the most important thing is how digital banking can support survival. They also argue that digital banking can make it easier and useful for daily life, especially in payment features connected.

Digital banking generally offers lower costs compared to traditional banking systems and provides better value to society with greater speed. The present study aims to propose a value-creation model in digital banking. The research method is qualitative in nature. The statistical population in the qualitative section included 15 university professors, managers, and experts in digital banking, who were selected using a purposive sampling method. The data collection tool for the qualitative section was a semi-structured interview, and the reliability of the qualitative section was confirmed using Cohen’s Kappa coefficient. Data were analyzed using thematic analysis. The results of the thematic analysis revealed 292 codes and 64 themes, categorized into 18 basic themes and 4 organizing themes. The identified dimensions include customer digital experience management, which encompasses user-friendly design, ease of use, creating a unique experience, monitoring the digital customer experience, and utilizing technology in experience management. Digital co-creation includes direct digital feedback, indirect digital feedback, customer digital participation, and digital interaction with customers. Digital service management involves digital service customization, management of digital concerns, service delivery management, service quality improvement, diversity of digital services, customer support and training, and a value-creation digital mindset. Digital value management includes monetary value, non-monetary value, informational value, relational value, and hedonic value. Delivering digital banking services with a focus on improving accessibility, speed, and added value contributes to enhancing customer experience and strengthening digital relationships. Additionally, considering cost-value trade-offs, along with providing rewards and incentives, can further motivate customers to use digital banking services. Ultimately, creating an efficient and enjoyable customer experience plays a key role in the success of digital banking services.

This study examines the effect of perceived usefulness, perceived ease of use, and perceived risk on Gen Z’s attitude toward using digital banking. Furthermore, this study examines whether the attitude toward digital banking influences their intention to use it. This research applied a quantitative approach, with the sample study being Gen Z between the ages of 18 and 25. With a total sample size of 148 respondents, an online questionnaire was distributed through Google Forms to gather the data. Structural Equation Modelling (SEM) with SmartPLS 4.0 software is the method of data analysis employed. It was found that perceived usefulness and perceived risk have a significant effect on attitude toward digital banking, whereas perceived ease of use does not have a significant effect. Perceived ease of use is positively significant towards perceived usefulness. Lastly, attitude toward the use of digital banking has a positive effect on the intention to use digital banking. Novelty/value- One characteristic of Generation Z is their familiarity with technology. Gen Z is the Generation that will continue to utilize technology; thus, it is crucial to understand their decisions about the usage of digital banking. This study sheds light on previously understudied aspects affecting attitudes and intentions toward digital banking in Indonesia.


 As information technology advances, societal demands rise, and smartphone features and sophistication rise along with them, banks must adapt to meet the current demand. For Indonesians, who are accustomed to use cash, digital banking will become new digital transformation. There is no information available on the variables that might affect Indonesians’ behavior intentions about using digital banking services. In particular, among generation Z in Indonesia following the COVID-19 outbreak, this research seeks to investigate the connection between perceived usefulness, perceived ease of use, and self-efficacy in consumers' intention for using digital banking services based on the Technology Acceptance Model (TAM). For the survey data gathered from 150 generation Z, multivariate data analysis approaches (reliability and validity test, multiple linear regression, collinearity analysis, and path estimations) are utilized. The results of this study's analysis demonstrate that perceived usefulness indicates a great influence on the attitude and intention to use digital banking services, compared to the perceived ease of use and self-efficacy. Therefore, for customers to completely comprehend the advantages associated with using digital banking services, it is critical to boost their perception of the usefulness of the services in their daily life.

Background: The adoption of digital banking has become increasingly important as financial institutions strive to enhance customer experience and service accessibility. However, the factors influencing users' intention to adopt digital banking remain complex. This study aims to explore the factors influencing the behavioral intention to adopt digital banking, focusing on these three key constructs. Methods: The study employs a quantitative research design using a survey to collect data from users of digital banking services. A structured questionnaire was developed to measure the three factors: performance expectancy, effort expectancy, and facilitating conditions. The data were analyzed using multiple regression analysis to assess the impact of each factor on users' intention to adopt digital banking. Findings: The results reveal that effort expectancy has the most significant positive influence on users’ intention to adopt digital banking. This suggests that the perceived ease of use plays a critical role in adoption decisions. Facilitating conditions, such as infrastructure and technical support, were also found to be important in encouraging users to engage with digital banking services. However, performance expectancy was found to have a statistically insignificant relationship with behavioral intention, which contrasts with prior studies that emphasize its importance. Conclusion: This study highlights the importance for banks to prioritize user-friendly platform design, minimize effort and complexity, while ensuring the availability of technical infrastructure and supporting systems. This study suggests that focusing on ease of use and providing enabling conditions are critical to increasing digital banking adoption rates and sustaining long-term user engagement. Novelty/Originality in this article: This article contributes to the existing literature by providing new insights into the role of effort expectancy in digital banking adoption, contrasting with prior research that emphasizes performance expectancy. It also highlights the significant role of facilitating conditions, offering practical recommendations for banks to enhance digital banking adoption by focusing on user accessibility and support systems.