Analysis of factors affecting adoption of mobile banking application in Indonesia: an application of the unified theory of acceptance and use of technology (UTAUT2)
DOI:
https://doi.org/10.26740/bisma.v12n2.p88-106Keywords:
mobile banking, perceived credibility, perceived self-efficacy, UTAUT2Abstract
Information technology has made mobile banking easy, convenient and accessible to 178 million unique mobile subscribers base in Indonesia. Out of this 50 million are smartphone users and collectively about 132 million are internet users . This rising trend has been forcing 120 commercial banks in the country to ramp up their mobile-based banking initiatives. However, in contrast to it, only 50 million have bank accounts out of 250 million Indonesian population size . This poses a few challenges to digital adoption using mobile as medium, especially when a limited number of people have bank accounts and the cost of internet is high due to geographical, infrastructural spread and cost barriers. The purpose of this study is to unearth such factors that have - direct or indirect - influence on consumer acceptance for mobile banking applications. This research model examines 205 respondents from online surveys in Jabodetabek, Indonesia. To conduct this study, we have used Unified Theory of Acceptance and Use of Technology (UTAUT2) model that helps in understanding perceived credibility and perceived self-efficacy variables and their roles in influencing the adoption for m-banking. Data was analysed using Partial Least Square (PLS) method. The findings suggest that performance expectancy, effort expectancy, and social influence have a significant effect on behavioral intention. Performance expectancy is the factor that mostly influences behavior intention. It can also be stated that behavioral intention, facilitating condition and habit all of these have a significant effect on reuse behavior.
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Magni, Massimo, M. Susan Taylor and Visnawath Venkatesh. (2010). 'To play or not play': A cross-temporal investigation using hedonic and instrumental perspective to explain user intentions to explore a technology. Int. J.Human-Computer Studies 68(2010) 572588, doi : 10.1016/j.ijhcs.2010.03.004.
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Natarjan, T., S. A. Balasubrmanian, and S. Manickavasagam. (2010). Customer's choice amongst self-service technology (SST) channels in retail banking: A study using analytical hierarchy process (AHP). Journal of Internet Banking and Commerce, Vol. 15, No. 2: 1-16.
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Riquelme, H. and R. E. Rios. (2010). The moderating effect of gender in the adoption of mobile banking. International Journal of Bank Marketing. Vol. 28, No. 5: 328.
Safeena, R., Hundewale, N., dan Kamani, A. (2011). Customer's adoption of mobile commerce: a study on the emerging economy. International Journal of e-Education, e-Business, e-Management and e-Learning, 1(3), 228-233.341, doi : 0.1108/02652321011064872.
Sripalawat, Jiraporn, Mathupayas Thongmak & Atcharawan Ngramyarn. (2011). M-Banking in Metropolitan Bangkok and a Comparison with other Countries. Journal of Computer Information Systems, 51:3, 67-76, doi : 0.1080/08874417.2011.11645487.
Tarhini, Ali, Mazen El-Masri, Maged Ali, and Alan Serrano. (2016) .Extending the UTAUT model to understand the customers' acceptance and use of internet banking in Lebanon A structural equation modelling approach, Information Technology & People, Vol. 29 Iss 4 pp. 830 849, doi : 10.1108/ITP-02-2014-0034.
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Venkatesh, Viswanath, James Y. L. Thong, and Xin Xu. (2012) . Consumer Acceptance and Use of Information Technology: Extending The Unified Theory of Acceptance and Use of Technology. MIS Quarterly Vol. 36 No.1, doi : 10.2307/41410412.
Venkatesh, V., M. G. Morris, G. B. Davis, and F. D. Davis. (2003) . User acceptance of information technology: Toward a unified view. MIS Quarterly, Vol. 27, No. 3: 425-478, 2003, doi : 10.2307/30036540.
Wikipedia (2020). List of banks in Indonesia. Access from https://en.wikipedia.org/wiki/List_of_banks_in_Indonesia / on 03 March 2020.
Wang, Y. S., Y. M. Wang, H. H. Lin, and T. I. Tang. (2003). Determinants of user acceptance of Internet banking: an empirical study. International Journal of Service Industry Management, Vol. 14, No. 5: 501-519, doi : 10.1108/09564230310500192.
Yu, Chian-So. (2012). Factors Affecting Individuals to Adopt Mobile Banking Empirical Evidence From the UTAUT Model. Journal of Electronic Commerce Research, Vol. 13, No.2 : 104-121.
Abuzwida, Bashir, Zulkiplie Abd Ghani and Faizal Bin Kasmani. (2017). Study Of Relationship Between Utuat Factors and Intention Towards Usage E-Management In Libyan Petroleum Industry. International Journal of Management, Innovation & Entrepreneurial Research EISSN: 2395-7662, Vol. 3, No 2, September 2017, pp 61-66, doi : 10.18510/ijmier.2017.322.
APJII. (2016). Buletin APJII Edisi 05 November 2016. Access on website APJII : https://apjii.or.id/content/read/104/275/BULETIN-APJII-EDISI-05---November-2016 /on 25 November 2017.
Arahita, Ceva Lavenja and Jurry Hatammimi. (2015). Factors Affecting the Intention of Reuse. International Journal of Research in Business and Social Science IJRBS ISSN: 2147-4478 Vol.4 No.4, 2015 Mobile Banking Service, doi : 10.20525/ijrbs.v4i4.15.
Aziz, Elvira and Ragil Muhammad Kamal. (2016). Adoption of A Consumer Technology Online Shopping with Model MSMEs Unified Theory of Acceptance and Use of Technology 2.CR Journal Vol.02 No.01, doi : /10.34147/crj.v2i1.
Baptista, Goncalo and Tiago Oliveira. (2015). Understanding mobile banking: The unified theory of acceptance and use of technology combined with cultural moderators. Computers in Human Behavior 50 (2015) 418430, doi : 10.1016/j.chb.2015.04.024.
Bhimasta, Raden Agoeng. (2017). Determinant Factors Of Consumer Adoption Toward Intention To Use Mobile Wallet: A Case Study Indonesian Y Generation. S2 Thesis,Univeritas Atma Jaya Yogyakarta.
Brown, I., C. Zaheeda, D. Douglas, and S. Stroebel. (2003). Cell phone banking: predictors of adoption in South Africa an exploratory study. International Journal of Information Management, Vol. 23: 381-394, doi : 10.1016/S0268-4012(03)00065-3.
Ferdiansyah, Irvan and Putu Wuri Handayani. (2011). Penentuan CSF Pada Website Internet Banking Ditinjau dari Aspek Kebutuhan Pengguna Sebagai Nasabah Individual dengan Studi Kasus BCA, Bank Mandiri, Dan BNI. Journal of Information Systems, Volume 7, Issues 1, April 2011, doi : 10.21609/jsi.v7i1.295
Foon, Yeoh Sok and Benjamin Chan Yin Fah. (2011). Internet Banking Adoption in Kuala Lumpur: An Application of UTAUT Model. International Journal of Business and Management: Vol. 6, No.4, doi : 10.5539/ijbm.v6n4p161.
Gaitan, Jorge Arenas-Gaitan, Begona Peral-Peral and Maria Angeles Ramon-Jeronimo. (2015). Elderly and Internet Banking: An Application of UTAUT2. Journal of Internet Banking and Commerce, April 2015, vol. 20, no. 1.
Hass, N., and Lehner, F. (2009). Knowledge Management Success Factors - Proposal of an Empirical Research. Proceedings of the 10th European Conference on Knowledge Management.
IFC (2010). Mobile Banking in Indonesia. Access from https://www.ifc.org/wps/wcm/connect/16cc33cf-f3d5-44bc-b439-ead8991cbcc4/Mobile%2BBanking%2BFinal%2BReport.pdf?MOD=AJPERES&CVID=j1FGbYr / on 03 March 2020.
Jeong, Bong-Keun and Tom E Yoon. (2013). An Empirical Investigation on Consumer Acceptance of Mobile Banking Services. Business and Management Research Vol. 2, No. 1; 2013, doi : 10.5430/bmr.v2n1p31.
Karma, N.G., Ibrahim, S.B. and Ali, A.H. (2014). Key factors affecting mobile banking adoption among banks customers in Sudan. International Journal of Liberal Arts and Social Science, 2(6), 112-122.
Kazi, A.K. and Mannan, M.A. (2013). Factors affecting adoption of mobile banking in Pakistan: Empirical Evidence. International Journal of Research in Business and Social Science, 2(3), 54-61, doi : 10.20525/ijrbs.v2i3.73.
Kit, A. K., Ni, A. H., Badri, E. N., and Yee, T. K. .(2014). UTAUT2 influencing the behavioural intention to adopt mobile applications.Bachelor Thesis. Universiti Tunku Abdul Rahman.
Laforet, S. and X. Li. (2005). Consumers' attitudes toward online and mobile banking in China. International Journal of Bank Marketing, Vol. 23, No. 5: 362-380, 2005, doi : 10.1108/02652320510629250.
Latan, H., and Ghozali, I. (2012). Partial Least Squares: Konsep, Teknik, dan Aplikasi Menggunakan Program SmartPLS 2.0 M3. Semarang: Badan Penerbit Universitas Diponegoro.
Lewis, C. C., Fretwell, C. E., Ryan, J., & Parham, J. B.(2013). Faculty use of established and emerging technologies in higher education: A unified theory of acceptance and use of technology perspective. International Journal of Higher Education, 2(2), 22-34, doi : 10.5430/ijhe.v2n2p22.
Luarn, P. and H. H. Lin. (2005). Toward an understanding of the behavioural intention to use mobile banking. Computers I Human Behavior, Vol. 21: 873-891, doi : doi.org/10.1016/j.chb.2004.03.003.
Magni, Massimo, M. Susan Taylor and Visnawath Venkatesh. (2010). 'To play or not play': A cross-temporal investigation using hedonic and instrumental perspective to explain user intentions to explore a technology. Int. J.Human-Computer Studies 68(2010) 572588, doi : 10.1016/j.ijhcs.2010.03.004.
Mars Indonesia. (2013). Awareness & Penetrasi Mobile banking Melonjak Tinggi. Access from Website Newsletter Mars Indonesia: http://newsletter.marsindonesia.com/2013/02/06/awareness-penetrasi-mobile-banking-melonjak-tinggi/ on 11 November 2017.
Nair, Ranjini S. and Shaniba Fasal. (2017). Mobile Banking and its Adopting Challenges. International Journal of Computer Applications (0975 8887) Volume 160 No 4, February 2017, doi : 10.5120/ijca2017913036.
Natarjan, T., S. A. Balasubrmanian, and S. Manickavasagam. (2010). Customer's choice amongst self-service technology (SST) channels in retail banking: A study using analytical hierarchy process (AHP). Journal of Internet Banking and Commerce, Vol. 15, No. 2: 1-16.
Nayak, Nitin. Vikas Nath and Nancy Goel. (2014). A Study Of Adoption Behaviour Of Mobile Banking Services By Indian Consumers. International Journal of Research in Engineering & Technology (IMPACT: IJRET) ISSN(E): 2321-8843; ISSN(P): 2347-4599 Vol. 2, Issue 3, Mar 2014, 209-222.
Nugroho, Priyatmoko, Wing Wahyu Winarmo and Rudy Hartanto.(2017). Faktor-Faktor yang Mempengaruhi Niat Menggunakan Mobile payment dengan Pendekatan Extended The Unified Theory of Acceptance and Use of Technology. Jurnal CITEE 2017.
Otoritas Jasa Keuangan (OJK). (2015). Bijak Ber-eBanking. Access on website OJK :https://www.ojk.go.id/Files/box/buku%20bijak%20ber-ebanking.pdf/ on 25 November 2017.
Pertiwi, Ni Wayan Dewi Mas Yogi and Dodik Ariyanto. (2017). Penerapan Model UTAUT2 untuk Menjelaskan Minat dan Perilaku Penggunaan Mobile Banking Di Kota Denpasar. E-Jurnal Akuntansi Universitas Udayana Vol.18.2. Februari (2017): 1369-1397, ISSN: 2302-8556.
Putra, Muhammad Dhandy Riyandra. (2015). Analisis Keberterimaan Aplikasi Mobile Banking: Menggunakan Pendekatan Unified Theory of Acceptance and Use of Technology (UTAUT) yang Dimodifikasi. Thesis: Univeristas Gadjah Mada.
PWC (2018). PWC Survey : Digital Banking in Indonesia 2018. Access from : https://www.pwc.com/id/en/publications/assets/financialservices/digital-banking-survey-2018-pwcid.pdf / on 03 March 2020.
Rahmayani, Indah. (2015). Indonesia Raksasa Teknologi Digital Asia. Access from Website Kominfo :https://kominfo.go.id/content/detail/6095/indonesia-raksasa-teknologi-digital-asia/0/sorotan_media on 11 November 2017.
Rema, Yasinta Oktaviana L. and Djoko Budianto Steyohadi. (2016). Faktor-Faktor yangg Mempengaruhi Penerimaan Mobile Banking Studi Kasus: Bri Cabang Bajawa. Seminar Riset Teknologi Informasi (SRITI).
Riquelme, H. and R. E. Rios. (2010). The moderating effect of gender in the adoption of mobile banking. International Journal of Bank Marketing. Vol. 28, No. 5: 328.
Safeena, R., Hundewale, N., dan Kamani, A. (2011). Customer's adoption of mobile commerce: a study on the emerging economy. International Journal of e-Education, e-Business, e-Management and e-Learning, 1(3), 228-233.341, doi : 0.1108/02652321011064872.
Sripalawat, Jiraporn, Mathupayas Thongmak & Atcharawan Ngramyarn. (2011). M-Banking in Metropolitan Bangkok and a Comparison with other Countries. Journal of Computer Information Systems, 51:3, 67-76, doi : 0.1080/08874417.2011.11645487.
Tarhini, Ali, Mazen El-Masri, Maged Ali, and Alan Serrano. (2016) .Extending the UTAUT model to understand the customers' acceptance and use of internet banking in Lebanon A structural equation modelling approach, Information Technology & People, Vol. 29 Iss 4 pp. 830 849, doi : 10.1108/ITP-02-2014-0034.
Tempo. (2016). Pengguna Mobile Banking di Indonesia Masih Rendah. Access from Website Tempo.co : https://bisnis.tempo.co/read/811653/pengguna-mobile-banking-di-indonesia-masih-rendah / on 11 November 2017
Venkatesh, Viswanath, James Y. L. Thong, and Xin Xu. (2012) . Consumer Acceptance and Use of Information Technology: Extending The Unified Theory of Acceptance and Use of Technology. MIS Quarterly Vol. 36 No.1, doi : 10.2307/41410412.
Venkatesh, V., M. G. Morris, G. B. Davis, and F. D. Davis. (2003) . User acceptance of information technology: Toward a unified view. MIS Quarterly, Vol. 27, No. 3: 425-478, 2003, doi : 10.2307/30036540.
Wikipedia (2020). List of banks in Indonesia. Access from https://en.wikipedia.org/wiki/List_of_banks_in_Indonesia / on 03 March 2020.
Wang, Y. S., Y. M. Wang, H. H. Lin, and T. I. Tang. (2003). Determinants of user acceptance of Internet banking: an empirical study. International Journal of Service Industry Management, Vol. 14, No. 5: 501-519, doi : 10.1108/09564230310500192.
Yu, Chian-So. (2012). Factors Affecting Individuals to Adopt Mobile Banking Empirical Evidence From the UTAUT Model. Journal of Electronic Commerce Research, Vol. 13, No.2 : 104-121.
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2020-04-03
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Mufingatun, M., Prijanto, B., & Dutt, H. (2020). Analysis of factors affecting adoption of mobile banking application in Indonesia: an application of the unified theory of acceptance and use of technology (UTAUT2). BISMA (Bisnis Dan Manajemen), 12(2), 88–106. https://doi.org/10.26740/bisma.v12n2.p88-106
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