The Relationship Between the Online Banking Usage and Financial Decision-Making Processes among Financial Management Students in Rural Areas

Abstract

This study examined the relationship between online banking utilization and financial decision-making engagement among Bachelor of Science in Business Administration major in Financial Management students in a rural area. Anchored on the Technology Acceptance Model, the Theory of Planned Behavior, and Financial Socialization Theory, it employed a descriptive-correlational quantitative design. Data were gathered from 242 purposively selected students (from a population of 649) through an online, structured questionnaire administered via Google Forms. The instrument measured online banking utilization in terms of frequency of use, type of transactions, and perceived trust and security, and assessed financial decision-making processes through budgeting practices, saving behavior, and spending patterns; pilot reliability testing indicated strong internal consistency across subscales. Descriptively, respondents reported low overall frequency of online banking use (overall mean score = 2.04, “Rarely”) but agreed that they use online banking for diverse transactions (overall mean score = 3.05, “Agree”) and expressed confidence in platform trust and security (overall mean score = 3.02, “Agree”). Respondents also agreed that online banking supports budgeting (overall mean score = 3.01), saving (overall mean score = 3.03), and spending management (overall mean score = 2.98). Spearman’s rank-order correlation showed significant relationships between online banking utilization and financial decision-making, with frequency of use exhibiting significant moderate negative associations (rs = -.276 to -.282, p = .000) and both transaction diversity (rs = .657 to .702, p = .000) and trust and security (rs = .753 to .823, p = .000) demonstrating strong to very strong positive associations. Overall, the findings highlight trust and security and broader transactional use as key correlates of stronger financial decision-making practices among students, supporting recommendations for more purposeful use of online banking and reinforcement of budgeting and saving competencies through instruction and institutional support. The study aligns with SDG 4 (Quality Education) and SDG 8 (Decent Work and Economic Growth) by strengthening student financial capability development, and with SDG 16 (Peace, Justice, and Strong Institutions) by underscoring the importance of secure, trusted digital financial systems. Its sustainability contribution is primarily socio-economic, educational, and institutional, as it supports more responsible financial behaviors, improved financial literacy formation, and safer participation in increasingly digital financial environments.