Uncovering the Intention to Use Digital Banking Services among Commercial Banks' Customers: Structural Equation Modelling Approach

Abstract

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.