The Investigation of Preference Attributes of Indonesian Mobile Banking Users to Develop a Strategy for Mobile Banking Adoption

Abstract

A new normal has been established as a result of the effects of the COVID-19 pandemic on social behavior, technology, and business. This has a significant effect on how technology is used, such as mobile banking services, which offer more hygienic and secure payment alternatives than cash. Mobile banking has been viewed as having the ability to enhance access to unbanked customers in developing economies such as Indonesia, where 100 million people remain unbanked. This study aims to develop strategies using importance-performance analysis (IPA) to improve adoption based on the perceived importance and performance of 1441 mobile banking users during the COVID-19 pandemic. Data were collected using an online questionnaire administered during the period of September 2022 to March 2023 using the mobile banking adoption attributes of Attitude, Perceived Usefulness, Perceived Ease of Use, Compatibility, Subjective Norm, Interpersonal Influence, External Influence, Perceived Behavior Control, facilitating conditions, self-efficacy, firm reputation, trust, disease risk, performance risk, financial risk, privacy risk, time risk, psychological risk, and perceived risk. IPA results were divided into four quadrants: “concentrate here”, “keep up the good work”, “low priority”, and “possible overkill” with a representation that respondents regard as important and well-addressed. The findings show that bank strategists seeking competitive advantage must push innovation efforts to protect users by improving privacy risk and financial risk and enhancing mobile banking security from potential cyberattacks. Digital banks and associated institutions need to educate mobile banking customers on the benefits of security measures for these services, which may improve confidence and trust, and consequently, accelerate mobile banking adoption.