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Exploring the technology acceptance of digital banking services in Malaysia with UTAUT model

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Abstract

Digital Banks assumed a critical role in the digital economy in providing fully digitalised services to cover underserved and unserved markets. Following the recent announcement by Bank Negara Malaysia (the Central bank of Malaysia) on April 29, 2022, these banks are expected to begin their operations within 12–24 months. Thus, this study investigates the technology acceptance of Malaysians to digital banking services. Malaysians' technology acceptance towards digital banking services. The study employs the Unified Theory of Acceptance and Use of Technology (UTAUT) model, considering variables such as performance expectancy, effort expectancy, social influence, and facilitating conditions. Data was gathered from 384 respondents in major cities throughout Malaysia. The analysis revealed that performance expectancy, effort expectancy, and facilitating conditions significantly and positively impact intention to adopt digital banking services, while social influence was found to be statistically insignificant. These findings provide valuable insights for digital banks and the central bank, enabling them to understand user perspectives on technology and enhancing the penetration of digital banking services to the public.

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Availability of data and materials

The datasets generated and/or analysed during the current study are not publicly available due to the PERSONAL DATA PROTECTION ACT.

Abbreviations

UTAUT:

Unified theory of acceptance and use of technology

INT:

Intention to adopt digital banking services

PE:

Performance Expectancy

EE:

Effort Expectancy

SI:

Social Influence

FC:

Facilitating Conditions

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Acknowledgements

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Funding

Universiti Tunku Abdul Rahman funded this research under UTARRF with Project number 6550/2K04.

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Authors and Affiliations

  1. Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Kampar, Malaysia

    Chin-Min Koh, Tun-Pin Chong, Nurfadhilah Binti Abu Hasan, Chuan-Chew Foo & Thye-Huang Tan

  2. Faculty of Business and Communications, INTI International University, Nilai, Malaysia

    Chee-Pung Ng

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  1. Chin-Min Koh
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  2. Tun-Pin Chong
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Correspondence to Chin-Min Koh.

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Koh, CM., Chong, TP., Hasan, N.B.A. et al. Exploring the technology acceptance of digital banking services in Malaysia with UTAUT model. J BANK FINANC TECHNOL (2024). https://doi.org/10.1007/s42786-024-00048-9

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