Consumer behaviour towards the adoption of digital banking channels

Abstract

Digital banking channels have gained immense popularity and have successfully acquired and retained clients. Despite their growing popularity, some consumers still hesitate to adopt these channels. In this study, we explore the role of personality in influencing consumer behaviour towards adopting digital banking channels. The study utilised the Technology Readiness Index to gauge customers' preference for digital banking channels. To answer the research question, the researcher employed a quantitative methodology. The snowball sampling method was used, with respondents passing the questionnaire to others who met specific criteria. 338 valid responses were collected. The proposed hypotheses were tested using structural equation modelling. The study suggests that mobile banking channels can be a powerful indicator of users' preferences for various banking channels, such as internet banking, ATM, and cell phone banking. Personality traits optimism, innovativeness and insecurity were the criteria responsible for making mobile banking the most preferred digital banking channel. Financial institutions must critically examine their mobile banking platforms and provide various services to support an end-to-end customer experience. Banks must continue to promote the benefits of mobile banking, including convenient access, time-saving, and the ability to conduct basic banking tasks. Further research could examine the impact of mobile banking channels on cybersecurity and data privacy.