In modernized age of information technology, customers are attracting to adopt digital banking. Therefore, this study aims to investigate impact of explanatory variables perceived usefulness (PU), perceived ease of use (PEU), perceived reliability (PR), perceived compatibility (PC), and perceived self-efficacy (PSE) on customers’ adoption of digital banking (ADB) based on Technology Acceptance Model. Data were collected via survey based on structured questionnaire. Paper uses descriptive and causal research designs to assess and examine effect of explanatory variables on customers’ ADB. This research reveals PSE and PC have dominant role in ADB. This paper explores significant influence of PR and PEU on ADB. This study concludes customers’ PSE, PC, PR and PEU have important role to intend customers’ ADB. Customers perceive that bank promptly alert most of transactions accurately trough digital applications. Bank customers have been switching from physical services to digital services since pandemic-2019. Policy makers, decision makers, digital retailers, online banking developers, and service providers should emphasize more on customers’ PSE, PC, PR, PEU for strengthening competitiveness of banks, and enhance customers’ digital banking habits. Banks should focus easier digital applications considering more usefulness, reliability and honesty to make customers more loyal towards use of digital banking in Nepal.
Lamichhane et al. (2025) studied this question.