The evolution of digital technologies has revolutionized the banking sector, enabling customers to access financial services with greater convenience and efficiency. The substantial expansion of digital banking adoption owes itself to technological advancements, evolving consumer preferences, governmental initiatives, and heightened competition. The extent of digital banking's adoption is significantly shaped by the perceived usefulness (PU) (Behl & Pal, 2016) of its services, a crucial notion reflecting customers' recognition of the utility digital banking offers for their financial needs. Moreover, this perception is intertwined with elements like trust, satisfaction, and ease of use (Liébana-Cabanillas et al., 2013).
As per previous studies, it was found that consumer behavior normally influences the adoption of digital banking (Tan & Teo, 2000). Factors such as age, gender, income, and educational levels influence consumers' propensity to adopt digital banking services (Barik & Sharma, 2019; Lal, 2019). The foundation of digital banking hinges on trust (Vaithilingam et al., 2013); a positive perception of the bank and its technology increases the likelihood of adopting digital banking. Customer loyalty (Amin, 2016) is also pivotal in the digital banking realm, influenced by perceived ease of use, perceived usefulness, and customer satisfaction.
Figure 1. Co-keywords Mapping (Source: VOS viewer)
This study utilizes a co-word mapping approach to examine the essential factors that can influence digital banking. It analyzes titles, keywords, and abstracts from 225 articles in the WoS database using the VOS viewer software, which generates a network image illustrates keyword relationships and clusters (Singh and Misra, 2021). Based on the VOS viewer output, the study has identified four clusters: "Digital Banking: Roles of IT and Social Media," "Digital Banking: Customer's Acceptance and Adoption," "Digital Banking: Customer Satisfaction," and "Digital Banking: Determinants". Figure 2 depicts research model, that incorporated primary predictor variables selected from these clusters.
Perceived usefulness (PU) emerges as a pivotal determinant across diverse domains of technology adoption (Yeh & Teng, 2012; Davis, 1989; Venkatesh et al., 2003). Individuals are more inclined to embrace technology if they believe it serves their goals and objectives (Venkatesh et al., 2007; Plewa et al., 2012). Various factors, both individual and contextual, shape the effects of PU on technology adoption. Moreover, PU intertwines with constructs like perceived ease of use, attitude, and intention to use. These constructs form an interconnected web, influencing each other and shaping inclinations toward technology, as exemplified by Venkatesh's (2008) discovery of PU and perceived ease of use (PEOU) impacting beliefs and intention to use (IU) of technology. Notably, perceived usefulness holds significance for technology developers and managers alike. Insights into PU's influencing factors can aid designers in crafting technology aligned with user expectations, while managers can utilize PU as a performance indicator to evaluate technology implementation's effectiveness.
Numerous studies underscore perceived usefulness as a key predictor of digital banking adoption in India. Customers' inclination to use digital banking services is driven by their anticipation of time and effort savings (Bankuoru Egala et al., 2021; Liébana-Cabanillas et al., 2013). Various personal and social factors (Zhou et al., 2010) influence perceived usefulness's impact on digital banking adoption, with educational attainment regulating the link between perceived usefulness and adoption. A history of prior technology use also heightens customers' perception of digital banking's utility. Several interconnected concepts, including perceived ease of use, trust, and customer satisfaction, closely align with perceived usefulness. Notably, George & Kumar, (2013) identify a positive relationship between perceived usefulness and customer satisfaction in the context of digital banking adoption. Furthermore, Alalwan et al., (2016) highlight the tandem influence of trust and perceived usefulness intention of customer on digital banking adoption in India.
For the purpose of this study, trust has been defined as the willingness of one party to expose themselves to potential risk from the actions of another party with the anticipation that the other party will carry out a particular action important to the trustor (Mayer et al., 1995). Prior studies have established role of trust in modifying user intention and have classified it into two phases i.e., trust before the employment of a technology (pre-use trust) and trust after its employment (post-use trust) (Hernández-Ortega, 2011). However, current study has analysed trust as a post use construct in order to evaluate users’ intention to continue using digital banking in long run.
Based on outcome oriented approach to anticipate users’ intention to continue using digital banking services, user satisfaction has been measured as an attribute derived from usage of technology. User satisfaction positively affects continuance intention to use (Wixom & Todd, 2005)
Practical implications emerge from the perceived usefulness of digital banking providers in India. Understanding the determinants of perceived usefulness empowers providers to design services catering to customers' demands (Wang & Li, 2019). Strategies aimed at enhancing usefulness and trustworthiness can boost adoption rates. Perceived usefulness serves as a pivotal performance metric for evaluating the effectiveness and impact of digital banking services (Ananda et al., 2020). In accordance with these empirical research findings, the hypotheses have been framed as below:
H 1 – There is a significant association between perceived usefulness and intention to use
H 2 – There is a significant association between perceived usefulness and user satisfaction
H 3 – There is a significant association between perceived usefulness and user trust
In the realm of technology adoption, perceived ease of use (PEOU) has garnered substantial attention for its pivotal role. PEOU, a cornerstone of the Technology Acceptance Model (TAM) (Davis, 1989; Venkatesh and Davis, 1996; Venkatesh and Davis, 2000; Venkatesh and Bala, 2008). This perception of simplicity strongly inclines users toward utilization.
In parallel, the Diffusion of Innovation (DOI) theory (Rogers, 1962) aligns with TAM, suggesting that a technology's perceived ease of use shapes its adoption rate. De Leon (2019) highlights that technologies perceived as user-friendly tend to witness rapid, widespread adoption. Effective user interface design significantly contributes to enhancing a technology's perceived ease of use by promoting user engagement, easing cognitive load, and providing clear feedback.
The significance of perceived ease of use extends notably to digital technology (Gefen & Straub, 2000; Shen & Chiou, 2010), especially pertinent in the context of mobile devices (Alalwan et al., 2016) frequently used in dynamic, unpredictable environments. Simplified applications tend to be readily decrypted and used. Additionally, cultural nuances play a role (Im et al., 2011; Phillips et al., 1994; Lee et al., 2013); certain cultures lean toward intuitive, less training-intensive technologies, while others may invest time and effort in learning. This cultural understanding becomes imperative in developing and disseminating technology products globally.
Perceived ease of use holds pivotal importance in various domains. E-commerce relies significantly on PEOU (Awa et al., 2015), as per the Technology Acceptance Model, with PEOU substantially influencing users' intent to make online purchases. Likewise, in digital learning, PEOU affects students' intention (Songkram et al., 2023) to use educational websites, well-designed platforms enhance satisfaction and engagement. Moreover, the acceptance of mobile health (mHealth) applications and emerging technologies like virtual reality (VR) is deeply tied to PEOU. Ease of use significantly influences users' intention to adopt and utilize mHealth apps and VR, fostering better health outcomes and technology adoption.
Crucially, PEOU, along with perceived usefulness (PU), forms the crux of TAM. PEOU gauges system understanding and simplicity, while PU reflects user expectations of system performance. This interplay becomes particularly relevant in digital wallet adoption, where PEOU translates to effortless learning and PU pertains to enhanced user performance. (Mew & Millan, 2021; Chawla & Joshi, 2020). Within contexts like e-commerce and website usage, PEOU and PU work in tandem, and hence contributes to online trust and user confidence. An easy-to-navigate platform fosters transparency, building trust during online transactions.
Notably, in the realm of digital banking, PEOU significantly shapes users' attitudes and adoption intentions. Indian digital banking users' attitudes were positively influenced by PEOU (Chawla & Joshi, 2019), accentuating its impact on digital banking acceptance. As a recurrent factor across multiple technology channels, PEOU is expected to play a similar role in the context of digital wallets. The perceived ease of use plays a fundamental role in technology adoption, influencing users' decisions across diverse domains. Its impact extends from e-commerce to digital learning, mobile health applications, and emerging technologies. Recognizing and leveraging PEOU can substantially enhance technology adoption, user engagement, and overall outcomes. In light of these empirical research findings, the following hypotheses are proposed:
H4 – There is a significant association between perceived ease of use and intention to use
H5 – There is a significant association between perceived ease of use and user satisfaction
H6 – There is a significant association between perceived ease of use and user trust
Intention to Use (IU) stands as a pivotal factor in technology adoption. According to the Technology Acceptance Model (TAM), two key influencers of IU are Perceived Usefulness (PU) and Perceived Ease of Use (PEOU). PU gauges a user's perception of a technology's contribution to performance enhancement, while PEOU assesses its user-friendliness.
Intention to use has been extensively examined across contexts, revealing its central role in shaping real-world usage behavior, particularly evident in online shopping platforms (Natarajan et al., 2017) where enhanced intent translates to increased sales and revenue. In social networking sites (SNSs), PU and PEOU significantly influence users' intent to engage with platforms (Hussein & Hassan, 2017). A perception of Facebook's utility and user-friendliness positively correlated with users' intent to use and engage socially (Luarn et al., 2015).
Similarly, intent to use holds significance in the realm of digital applications (Oliveira et al., 2016). PU, PEOU, and subjective norms exert substantial influence on users' intention to use digital apps. Favorable perceptions of usefulness, simplicity, and social acceptance propel willingness to adopt and utilize such apps. This intention-based paradigm extends to emerging technologies like blockchain, where PU, PEOU, and perceived risk (Kesharwani & Singh Bisht, 2012) influence users' intent to adopt. Blockchain applications perceived as useful, straightforward, and low-risk heighten willingness to embrace the technology.
In light of these insights, researchers and practitioners collaborate to develop effective strategies for technology acceptance and utilization, acknowledging the interplay of factors that influence users' intention to use. In accordance with these empirical research findings, the following hypotheses are framed:
H7 – There is a significant association between intention to use and user satisfaction
H8 – There is a significant association between intention to use and user trust