Factors Influencing the Intention to Adopt Digital Banking: Evidence from Indonesian Bank Customers Using the Technology Acceptance Model (TAM)

Abstract

Objective: This study aims to analyze the factors influencing the intention to adopt digital banking among bank customers in Indonesia using the Technology Acceptance Model (TAM) framework, which has been extended to include the variables of trust, perceived security, and social influence.

Research Design & Methods: This study employs a quantitative approach with a survey design. Data were collected from 385 active bank customers via a structured questionnaire. Data analysis was conducted using Partial Least Squares-based Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS 4.0 to test the relationships among variables and the strength of the structural model.

Findings: The results indicate that perceived ease of use, perceived usefulness, trust, perceived security, and social influence have a positive and significant effect on the intention to adopt digital banking. Perceived usefulness was the most dominant factor (β = 0.412; t = 8.914; p < 0.001), followed by trust (β = 0.318; t = 6.241; p < 0.001). The research model explains 67.3% of the variation in adoption intention (R² = 0.673) with good predictive power (Q² = 0.441).

Contributions: This study enriches the literature on financial technology adoption in developing countries by integrating the extended TAM constructs within the context of digital banking in Indonesia. In practical terms, the findings of this study provide insights for the banking industry on how to increase the adoption of digital services by enhancing the benefits, trust, and security of the system.

Novelty: The novelty of this study lies in the simultaneous integration of the variables of trust, perceived security, and social influence into the TAM model within the context of digital banking in developing countries, supported by comprehensive PLS-SEM-based empirical evidence.