Implementation of Biometric Technology in Indonesian Mobile Banking: A TAM Perspective on Enhancing Transaction Security and Enjoyment

The expanding adoption of mobile banking within Indonesia presents significant challenges in maintaining both the security and user experience of transaction processes. The banking data breach incident in 2023, where 15 million customers' data were exposed, emphasized the critical need for stronger authentication systems. This investigation focuses on assessing the role of perceived security and enjoyment in the acceptance of biometric authentication technologies in the Indonesian mobile banking sector. Using a Likert scale questionnaire, this study quantitatively examined the TAM among 100 mobile banking users in JABODETABEK. The analysis conducted with Structural Equation Modeling (SEM) with SmartPLS 4 demonstrated significant positive links between perceived security and usefulness <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">$(\mathrm{t}=6.196)$</tex> and between perceived enjoyment and ease of use <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">$(\mathrm{t} = 6.885)$</tex>. The research model accounted for 54.4 % of the variance in attitudes toward usage and 52.4 % of the variance in intentions to use the system. To achieve security, banks should implement multi-factor authentication (MFA), data encryption, and continuous monitoring systems. Additionally, enhancing accuracy requires optimizing biometric algorithms to minimize false acceptance rates (FAR) and false rejection rates (FRR). Compared to previous studies, this research uniquely integrates perceived security and enjoyment into the Technology Acceptance Model (TAM), offering a novel perspective on biometric technology adoption in the context of Indonesian mobile banking. These insights contribute to TAM model development and provide practical implications for banking institutions implementing secure and user-friendly biometric technology.