Examining the Factors Driving Digital Banking Adoption in Indonesia: A Modified Technology Acceptance Model Approach

Abstract

This study examines the critical factors influencing Indonesian consumers' behavioral intention to use digital banking applications. Using a modified Technology Acceptance Model (TAM), the research investigates the impact of perceived usefulness, ease of use, security, risk, trust, and rewards on digital banking adoption. A survey of 114 university students in Greater Jakarta and Surabaya was conducted, and the data were analyzed using PLS-SEM. The results indicate that perceived usefulness, ease of use, trust, and rewards have significant positive effects on behavioral intention, while perceived risk and security do not. Trust is positively influenced by security but not affected by perceived risk. The findings suggest that digital banking providers should focus on enhancing the perceived benefits and trustworthiness of their services to increase adoption. The study contributes to the literature by providing insights into the factors driving digital banking adoption in Indonesia and offers practical recommendations for improving digital banking services in the post-COVID-19 era.