Factors Influencing Consumer Intentions to Adopt Digital Banking Integrating UTAUT2 and Security

Digital banking provides efficient services but faces several risks, making perceived security and low cost affect the customer’s adoption decisions. This study aims to determine the factors that influence digital banking adoption with the UTAUT2 framework extended with the variables of perceived security and financial cost. Using PLS-SEM analysis on 390 digital banking users in Indonesia, the results showed that habit, hedonic motivation, perceived security, financial cost, and performance expectation significantly influence adoption intention to use, while habit and behavioral intention influence usage behavior. However, facilitating conditions, effort expectancy, price value, and social influence didn’t significantly affect intention, and facilitating conditions didn’t affect usage behavior. This study improves the digital banking literature by integrating security and cost factors, suggesting that banks and fintech companies improve security and ensure cost transparency.