Factors influencing the adoption of digital banking services

Abstract

The rapid development in technologies has changed the face of the banking sector, and more people are shifting towards digital banking services. However, customers' acceptance of these services in Nepal depends on a number of circumstances. This research adopts a quantitative and descriptive approach based on TAM and behavioral theories to study those variables that affect Nepalese consumers in the acceptance of digital banking. Convenience sampling was adopted to collect primary data through an online structured questionnaire from 385 respondents. Multiple regression analysis was used along with Pearson correlation, reliability testing, and descriptive statistics. The findings reveal that perceived utility, perceived ease of use, and social influence have a positive influence on the adoption of digital banking, but social influence is the strongest predictor. Adoption is not affected by factors such as perceived risk, design, or content. The research has drawn a conclusion that digital banking's benefits, usability, and social support ultimately become a major factor in its acceptability in Nepal. Banks and government officials can use this information to promote digital banking acceptability.