Examining the Adoption of Digital Banking: Extending the UTAUT2 Model with Perceived Security and Promotion

Digital banking, is a financial service model that leverages digital technology and electronic channels to provide a wide range of banking and financial services to individuals, businesses, and institutions.It allows customers to access, manage, and conduct various financial transactions through online platforms, mobile applications, and other digital interfaces, eliminating the need for in-person visits to physical bank branches.Nowadays the numbers of digital banking in Jakarta have significantly increase but when it comes to selecting and adopting digital banking customers naturally have their own preferences and these preferences are certainly influenced by many factors.Therefore this study analyzed factors influencing the adoption of digital banking in Jakarta using an extended UTAUT2 model with perceived security and promotion as additional constructs.A questionnaire survey of 400 digital banking users in Jakarta was conducted.PLS-SEM analysis revealed performance expectancy, effort expectancy, hedonic motivation, perceived security, and promotion had significant positive effects on usage intention.However, facilitating condition, social influence, and habit showed non-significant effects.The moderating role of gender was supported but age and experience did not moderate any relationship.The findings provide valuable insights for banks to focus on enhancing performance, ease of use, security assurances, and promotional strategies to drive digital banking adoption.