Determinants Affecting Consumer Adoption of Digital Banks in Malaysia

Wong, Lian Jiun (2025) Determinants Affecting Consumer Adoption of Digital Banks in Malaysia. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

In recent years, financial institutions have been undergoing digital transformation to meet the growing demand for digital services, especially during the COVID-19 pandemic, which has further accelerated this transformation, and the banking industry has also rapidly digitised into digital banking. Despite the rapid growth of digital banks worldwide, the penetration of digital banking in Malaysia remains relatively low, with consumers still facing numerous concerns and barriers to adopting digital banking. This study adopts an extended Technology Acceptance Model (TAM) and incorporates factors that have not been deeply studied in prior research. This study will examine the direct, indirect (simple mediation), parallel mediation, simple moderation, and moderated mediation relationships among perceived ease of use, perceived usefulness, perceived value, consumer engagement, perceived security, and the adoption of digital banks. To achieve the research objectives, this study collected 440 samples through online surveys. Following data screening and the removal of unusable samples, 354 valid and reliable responses were retained for analysis. The data will be analysed using the IBM SPSS version 29 and SmartPLS version 4.1.1.1. The results show that all direct, indirect (simple mediation), parallel mediation, simple mediation, and moderated mediation relationships are significantly supported. The results of this study enrich the existing literature by offering a clearer understanding of the determinants influencing the adoption of digital banks, thereby providing theoretical and managerial implications. This study concludes with some limitations and provides future recommendations for more research into the adoption of digital banking. Keywords: Digital Banks, Technology Acceptance Model (TAM), Parallel Mediation, Moderated Mediation