Understanding Online Banking Adoption in a Developing Country

TLDR

Rapid digital device proliferation has highlighted online banking as a key financial service, yet technology acceptance research remains scarce in developing Asian economies. The study applies an extended UTAUT2 model, moderated by cultural variables, to uncover determinants of online banking acceptance among customers. The model was evaluated using structural equation modeling. Findings confirm that performance expectancy, facilitating conditions, habit, perceived security, and price value drive behavioral intentions, while collectivism and uncertainty avoidance moderate these relationships.

Abstract

The massive growth in digital devices and communication has spotlighted the wisdom of doing financial transactions through online banking. In developing Asian economies, online banking technology can strengthen financial systems by developing a solid connection between financial institutions and the local populace. Technology acceptance studies are under-researched in this region, especially with innovative models. Filling the gap, this paper uses a comprehensive model of extended Unified Theory of Acceptance and Use of Technology (UTAUT2), moderated by cultural variables. This will provide new insights into the determinants of technology acceptance by considering cultural effects on individual customers. The authors analyzed the model through structural equation modeling. The results validated performance expectancy, facilitating conditions, habit, perceived security, and price value as important antecedents of behavioral intentions. The cultural dimensions, collectivism, and uncertainty avoidance were found to be significant moderators in explaining behavioral intention and usage behavior for online banking.