What Accelerates the Choice of Mobile Banking for Digital Banks in Indonesia?

Toto Edrinal Sebayang (), Dedi Budiman Hakim, Toni Bakhtiar and Dikky Indrawan ()
Additional contact information
Toto Edrinal Sebayang: School of Business, IPB University, Bogor 16151, Indonesia
Dedi Budiman Hakim: Department of Economics and International Center for Applied Finance and Economics, IPB University, Bogor 16680, Indonesia
Dikky Indrawan: School of Business, IPB University, Bogor 16151, Indonesia

JRFM, 2023, vol. 17, issue 1, 1-23

Abstract: The recent COVID-19 pandemic has led to changes in business, technology, and social interactions, creating a new normal that has important implications for the role of technology, including mobile banking services that offer safer and more hygienic payment methods than cash. Innovations in mobile banking services have been considered to have the ability to provide unbanked customers with better access in growing markets such as Indonesia, which still has a huge unbanked population of 100 million people. This study evaluates the driving factors of mobile banking adoption by 1441 banking customers among major digital banks in Indonesia. Data collected between September 2022 and March 2023 were examined using PLS-SEM with Smart PLS 4.0.9.6. This study extends the Decomposed Theory of Planned Behavior (DTPB) framework by including Disease Risk, Trust, Firm Reputation, Perceived Risk, Performance Risk, Privacy Risk, Financial Risk, Psychological Risk, Time Risk, and Disease Risk. The findings show that Trust, Attitude, Perceived Behavior Control, Perceived Risk, Psychological Risk, and Disease Risk play a significant role in respondents’ intention to adopt mobile banking services. In contrast, Subjective Norm, Firm Reputation, Performance Risk, Privacy Risk, Financial Risk, and Time Risk had lower impacts. The findings suggest that users choose mobile banking over cash as a safety measure. As a result, banks must prioritize their mobile banking innovations tailored to personalized user experience to deepen engagement, with easy-to-use navigation that fits the lifestyles, values, and needs of banking customers.

Keywords: mobile banking adoption; decomposed theory of planned behavior; disease risk; trust (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/17/1/6/pdf (application/pdf)
https://www.mdpi.com/1911-8074/17/1/6/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:17:y:2023:i:1:p:6-:d:1304622

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().