Factors Influencing Low Adoption of Mobile Banking in Underdeveloped Regions in Indonesia, Based on Modified Push–Pull–Mooring Theory

This study aims to identify and analyze the factors that are preventing the adoption of mobile banking in underdeveloped regions of Indonesia. A modified push–pull–mooring (PPM) framework is being used to propose a theoretical model providing valuable information for banks and the government. This information will help in formulating strategic measures to address the low adoption of this platform in the area. This research employs quantitative methods. The author gathers primary data from 362 respondents in West Sumba Regency by distributing self-administered offline questionnaires. SEM techniques are utilized to analyze the proposed model using AMOS software. The findings suggest that perceived convenience has the most significant impact on low mobile banking adoption, followed by low trust in government, perceived risk, high switching costs, habits, and low information quality, which are the least significant factors. Additionally, low innovativeness was found to have no significant impact on low mobile banking adoption. The focus of this research is to identify the factors that can hinder or facilitate mobile banking adoption in underdeveloped regions in Indonesia, which is different from previous research. It is important to investigate this because consumers in those areas primarily engage in cash transactions and wait in lines at ATMs for financial dealings such as transfers, payments, purchases, and balance checks, thus making the adoption of mobile banking difficult to implement in society. Additionally, this research utilizes the push–pull–mooring theory, which has been modified from its original concept to make it suitable for explaining consumer behavior related to low adoption behavior.