Muhammad MUFARIH, Riyanto JAYADI, Yovin SUGANDI / Journal of Asian Finance, Economics and Business Vol 7 No 10 (2020) 897–907

897

Print ISSN: 2288-4637 / Online ISSN 2288-4645
doi:10.13106/jafeb.2020.vol7.no10.897

Factors Influencing Customers to Use Digital Banking

Application in Yogyakarta, Indonesia

Muhammad MUFARIH1, Riyanto JAYADI2, Yovin SUGANDI3

Received: July 15, 2020  Revised: September 06, 2020  Accepted: September 10, 2020

Abstract
The development of information technology and the demands of society on an application in an operating system, as well as increasing the
specifications and sophistication of smartphones, require banks to make changes to their mobile banking applications. The transformation of
the mobile banking application into a digital banking application conducted by banks has made users re-evaluate based on their preferences.
This study presents the behavior of users of digital banking applications in Yogyakarta, Indonesia. The hypothesis model is based on
Technology Acceptance Model (TAM) with additional factors of the social image, perceived risk and perceived trust adopted from Muñoz-
Leiva et al. (2017). The methodology in this study includes data collection through questionnaires distributed online and data analysis using
the Structural Equation Model. The results of this study illustrate that the perceived trust and perceived risk have a more dominant part in
influencing user attitude and user intention to use digital banking. Meanwhile, social image, perceived ease-of-use and perceived usefulness
are not significant in influencing user attitude and user intention to use digital banking. The implication of this research helps to determine
the right communication and strategy so that more users with more benefits can utilize this digital banking application.

Keywords: Mobile Banking, User Behavior, Social Image, Perceived Trust, Perceived Risk, Attitude

JEL Classification Code: G21, G41, O33

1.  Introduction e-commerce application that is delivered by a financial

institution or bank that allows its users to conduct financial
Although mobile banking is not a new technology, for transactions remotely by adopting a mobile device
banking customers in general, this technology helps them (Baabdullah et al., 2019). Digital banking is an excellent
to carry out daily banking activities. Digital banking is an example of a cellular technology breakthrough in the
banking sector, which allows customers to independently
carry out financial transactions, such as balance information,
fund transfers, bill payments, and other transaction, through
First Author. Information Systems Management Department, BINUS
1
mobile devices, smartphones or other devices at a time and
Graduate Program – Master of Information Systems Management, place customer-selected (Alalwan et al., 2017).
Bina Nusantara University, Jakarta, Indonesia.
Email: [email protected]. The use of digital banking cannot be separated from
Corresponding Author. Information Systems Management
2 the penetration of mobile devices that are very massive in
Department, BINUS Graduate Program – Master of Information Indonesia. The total population of Indonesian in January
Systems Management, Bina Nusantara University, Jakarta, 2019 is known to be 268.2 million. However, there are 355.5
Indonesia [Postal Address: Jl. K. H. Syahdan No. 9, Kemanggisan,
Palmerah, Jakarta, 11480, Indonesia] million users, making the percentage of mobile users 133%,
Email: [email protected]. greater than the original number of Indonesians.
Information Systems Management Department, BINUS Graduate
3
Nowadays, technology has changed the way consumers
Program – Master of Information Systems Management, Bina
Nusantara University, Jakarta, Indonesia.
want to interact. Apart from factors such as speed, comfort,
Email: [email protected] consistency, and friendliness, the human touch is also one of
the main factors that support the user experience. Creating
© Copyright: The Author(s)
This is an Open Access article distributed under the terms of the Creative Commons Attribution real relationships by making technology feel more human can
Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits
unrestricted non-commercial use, distribution, and reproduction in any medium, provided the
create a better customer experience and is very important for
original work is properly cited. the development of this industry. For banks, user experience
898 Muhammad MUFARIH, Riyanto JAYADI, Yovin SUGANDI / Journal of Asian Finance, Economics and Business Vol 7 No 10 (2020) 897–907

is significant; based on the Pricewaterhouse Coopers survey, studies focus on the factors that influence the acceptance of
94% of respondents agree that customer experience is part of mobile applications from a holistic approach that integrates
developing business strategies, 40% of respondents associate several principles related to theories of trust, risk, and social
with company strategy, 22% of respondents consider it as image (Liebana-Cabanillas et al., 2017) or social influences
consumer strategy, 18% of respondents see it as a digital or subjective norms.
strategy, and 8% of respondents consider it as product Technology acceptance is also influenced by one’s positive
strategies (PricewaterhouseCoopers, 2018). and negative attitudes (Parasuraman, 2000). The concept
Based on consideration of customer needs and fraud of consumer attitudes towards the use of technology-based
risk in cyberspace transactions, the actual digital banking products and services can be explained in the technology-
application could become the main channel for banking readiness variable. Someone with a high positive attitude in
in Indonesia. This strategy was reinforced by the rapid responding to the existence of technology tends to easily use
acceleration of customer growth from 2013 to the last technology, conversely if a someone has an adverse reaction,
few years. However, for some conventional customers it will constitute an entry barrier to information.
there is still reluctance or concern to use a digital banking Several previous studies has been conducted in this
application, in addition to lack of experience and security, area. Le et al., 2020 conducted a study on the behavior of
and also because one of the prominent characteristics of using customers of banks in Vietnam who have not used mobile
digital banking in Indonesia is that connectivity depends on banking and those who have used it. The focus of this
the banking application used and network availability from research was to identify factors that influence customer
existing cellular operators (Pousttchi & Schurig, 2004). The decisions in using mobile banking. The results of this study
banking sector, like other sectors, makes the Internet and indicate that the social influence factor has more impact on
mobile applications as one of the most effective channels in customer decisions. Other factors, such as the influence of
offering banking products. Therefore, there is an increase in perceived ease-of-use and perceived trust, are not dominant
banking competition to balance increasing customer demand compared to social influence (Le et al., 2020). Nguyen
(Shaikh & Karjaluoto, 2014). (2020) studied the factors affecting the intention to use digital
Banks are required to provide the best service following banking in Vietnam using structural equation modeling. The
customer expectations, so that some banks make changes/ author found that perceived usefulness has a positive effect
transformations on a large scale, including digital on attitude and intention to use the service in Vietnam. In
transformation. Digital banking, which was initially an comparison, perceived risk has a negative impact on attitude
application with standard transaction features, has been towards the service. In terms of the studies on Indonesian
changed into an application with a variety of functions, banking, customer trust toward Islamic banking in Indonesia
ranging from opening savings and investment accounts, has been studied by Usman (2015). Indonesian customer
withdrawal without cards, real-time gross settlement, redeem was found to trust Islamic bank relatively highly. However,
points, shopping, and several other types of transactions. trust in the Islamic bank does not mean those customers will
Noting the background above, when there is a change becoming Islamic bank customer.
in technology, in this case, the application changes, there Following recent and specific extensions of the
will always appear two statements, namely, whether the Technology Acceptance Model (TAM), only a few studies
application is better or worse or whether it is more desirable or centered on factors affecting the acceptance of such mobile
not desirable. In order to convey this interest, the Acceptance apps from a holistic perspective that integrates many
Model theory developed by Davis (1989) states that the concepts related to trust, risk and social image theory (Lin et
usage of an application system is motivated by behavioral al., 2007). In this study, the TAM model, slightly altered by
purpose, where the value is affected by the interpretation of Munoz-Leiva et al. (2017) is adopted to analyze the factors
the consumer (beliefs) in the form of perceived usefulness affecting the acceptance of digital banking applications in
of the order and perceived ease of use. An application that is Yogyakarta, Indonesia. The model is integrated with the
easy to use will attract customers; also, there is a significant factors of trust, risk and social image into the TAM model.
positive relationship between expectations and ease of use
so that in the end the customer’s perception of the usefulness 2.  Literature Review
of the application will be directly influenced by its user-
friendly application (Voon et al., 2015). The most substantial Digital banking application is the development of
influence on behavioral intention is perceived conformity. M-banking features that were previously widely used
On the other hand, other variables have a significant by banks in collaboration with cellular providers. The
impact on behavioral intentions, namely, reputation, difference is that the M-Banking app is attached to the sim
performance expectations, effort expectations, and social card, whereas the digital banking application is installed
influence (Rilling & Debbie Harrison, 2015). Several other on the cell phone. Other changes that can be immediately
 Muhammad MUFARIH, Riyanto JAYADI, Yovin SUGANDI / Journal of Asian Finance, Economics and Business Vol 7 No 10 (2020) 897–907 899

seen are the applications, which are more attractive and user 2.2.  Technology Acceptance Model
friendly. Generally, digital banking can be accessed in three
ways: (1) using the application by downloading the digital In the TAM model, there are two variables: usability
banking service application from the app store available on and ease of use, to determine attitudes and intentions to
the smartphone, (2) access through the provider menu, or use the system (Davis, 1989). Usability refers to the level
(3) some digital banking is connected to Internet banking, where someone believes that using a particular system will
so to be able to activate it must first activate an account on improve their performance or work, and the perception of
Internet banking. ease of use refers to the level where someone believes that
using a system will undoubtedly be free of effort (Davis,
2.1.  Technology Readiness Model 1989). Perceived characteristics are expected to influence
the intention to use technology, which in turn affects the
The use of digital banking in business operational actual use of technology.
activities tends to increase in each bank. Technology and TAM is a model that explains behavioral intention.
human resource readiness factors also influence the decision Behavioral intention and behavior are two different things;
to adopt technology in the business process. Related to the the behavioral intention is still an interest. Interest is defined
acceptance of new technology systems, the Technology as a desire to perform a behavior. While behavior is a real
Acceptance Model (TAM), an adaptation of Theory of action or activity carried out. Thus, it can be interpreted that
Reasoned Action (TRA), states that the use of technology is behavior will be done if someone has the interest to do it
influenced by behavioral intent. Meanwhile, the behavioral (Delone & McLean, 2003). From the explanation above, the
intention is influenced by beliefs, namely, perceived interest in using the mobile banking system can be seen as an
usefulness and perceived ease of use. The TAM theory impetus for someone to conduct behavior using the mobile
initially included a variable approach, but later ruled it out banking system.
because of its poor impact in mediating the relationship of TAM has been expanded to add original models with
behavioral intention and belief (Venkatesh & Davis, 2000). other constructions suitable for the technology under study.
Individual characteristics become one of the essential For example, in the retail industry, TAM has been widely
aspects in determining the factors that influence one’s adopted to predict consumer intentions to use online
acceptance of a new information system, as stated by shopping and consumer acceptance of mobile payments
Parasuraman (2000) in his theory of Technology Readiness (Chen, 2008) by adding construction such as perceived trust,
Index (TRI). Pasuraman and Colby in Ling and Moi (2007) security and privacy (Kumar & Mukherjee, 2013). Usability
said that the perception of a person’s technology has two and ease of use have a positive relationship with an attitude
different perspectives, positive and negative, resulting in towards mobile internet (Cheong & Park, 2005). They also
four dimensions of optimism, innovation, discomfort and found that perceived price levels had a negative relationship
insecurity in the readiness technology model. with attitudes towards mobile Internet, and attitudes towards
Another study in Malaysia on students produced mobile Internet were found to be the most significant
findings that mobile banking students did not show high factors in predicting behavioral intentions to use mobile
readiness for technology and were not resistant. Besides, in Internet. TAM proposes that usability and ease of use, as
research in other fields, the results show that respondents well as feeling pleasure, can anticipate behavioral intentions
have a high desire to use e-learning, have a positive attitude among mobile technology users. Factors that influence
to e-learning, and assume that e-learning is easy to use and technology acceptance according to TAM include external
useful to improve their academic achievement (Ling & factors (individual characteristics), perceived ease of use
Moi, 2007). Optimism has a positive influence on perceived and perceived usefulness. In addition to the TAM variables,
usefulness, but does not affect the perceived ease of use there are other variables examined by the development of the
of technology. Interest in using technology is influenced TAM model by Munoz-Leiva et al. (2017). Explanation of
by perceived usefulness but not influenced by perceived each variable used in the research model follows.
ease of use. The different results of this research are
impressive in other technology readiness studies and other 2.2.1.  Perceived Ease of Use
research subjects such as the acceptance of mobile banking
technology by mobile banking users. In another model, some Perceived ease of use has been defined by Davis
try to explain individual behavior regarding technological (1989) as the extent to which a person believes that using a
innovations applied in new contexts and the different stages particular system will be free of effort. Consumer behavior
of the consumer decision-making process, namely, by using research found that consumers who feel the benefits and
the UTAUT (Unified Theory of Acceptance and Use of conveniences of the system affect the intention of consumer
Technology) model (Abrahão et al., 2016). behavior towards the system (Gao & Bai, 2014). Ease of use
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is defined as the extent to which potential users expect the that arises because of a need, which is felt or not felt or
target system to be free of effort (Venkatesh & Smith, 2013). the desire of a thing. Factors that generate interest can
Perceived ease of use, which is defined as the perception of be classified as follows: 1) internal needs factors. These
ease, is one’s perception that using technology can be easily needs can be in the form of physical and psychological
understood and applied. In other words, perceived ease of needs; 2) social motive factors, the emergence of interest
use is a level of confidence in the ease of using an application in a person, can be driven by social motives, namely, the
in carrying out its activities. need to get recognition, appreciation from the environment
where he is; and 3) emotional factors. They measure
2.2.2.  Perceived Usefulness someone’s intensity in paying attention to a particular
activity or object.
Perceived usefulness is defined by how much a person
thinks that a system will enhance their work’s performance 2.2.5.  Social Image
(Davis, 1989). Prior studies on consumer behavior found
that consumers who felt the ease of use and usefulness of the The statement about a social image is described as the
system could influence the intention of consumer behavior prestige that arises as a user and a higher status than non-
towards the system (Gao & Bai, 2014). Perceived usefulness users. He also illustrates the extent to which users can gain
is also described as the extent to which a particular person respect and admiration from peers on their social media
believes in improving performance through the use of a because of their IT use (Lin & Bhattacherjee, 2010). This
technological system (Bangkara & Mimba, 2016). social image is essential because an innovation/new thing can
Individuals evaluate the consequences of their behavior cause feelings of uncertainty about the consequences of its
in terms of perceived benefits. This perception is based on use; therefore, customers can choose to seek other people’s
the choice of their behavior on the desirability of use (Kim advice on personal opinions and or personal experiences
et al., 2007). Trust can enhance certain aspects of perceived (Muñoz-Leiva et al., 2017).
usefulness (Gefan et al., 2003). Perceived usefulness
provides reliable predictions for predicting the use of self- 2.2.6.  Perceived Trust
predicted decision models. These results confirm that there
is a high correlation between perceived usefulness and one’s The statement regarding perceived trust is perceived as a
intention to use the system. commitment to maintaining digital banking, trust in digital
banking application and its reliability.
2.2.3.  Attitude Towards Use
2.2.7.  Perceived Risk
The variable of digital banking acceptance is measured
based on the attitude towards the use of digital banking Perceived risk is defined as the level of uncertainty that
(attitude towards using digital banking). Attitude towards users face in certain buying situations (Cox & Rich, 1964).
use is a person’s attitude towards an object is a function of Perceived risk for digital banking users refers to the worst
his beliefs about that object and is an assessment response expectations in finding the best results from the adoption
related to his beliefs. of digital banking services (Yousafzai et al., 2003). So,
this perceived risk or uncertainty affects one’s confidence
2.2.4.  Intention to Use in technology adoption decisions. The more perceived risk,
the adoption of mobile banking will be increasingly avoided,
Intention to use is someone’s desire (interest) to use and vice versa (Al Kailani & Kumar, 2011).
a specific behavior. A person’s interest in behaving is
predicted by his attitude towards his behavior and how he 2.3. Hypotheses
thinks others will judge him if he performs the behavior
(Davis et al., 1989). Interest is also the mind’s constant Many theories and models of behavioral judgment
tendency to pay attention and remember some activities or have been established to analyze user behavior towards the
activities. So, someone who is interested in an activity and adoption of innovative technology. Based on the purpose of
pays attention to that activity must be based on pleasure, and this study, the model to be used is in accordance with the
if pleasure arises, then, someone will consistently use it in theory of attitude based on social psychology, such as the
the future. In carrying out its functions, Interest is closely Technology Acceptance Model (Davis et al., 1989).
related to thoughts and feelings. Humans make judgment Perceived ease of use is defined as the degree to which
and determine after choosing and making decisions. an individual believes that in an organizational context, the
Interest is the tendency of a big heart towards something use of a system will be effortless (Davis et al., 1989). This
 Muhammad MUFARIH, Riyanto JAYADI, Yovin SUGANDI / Journal of Asian Finance, Economics and Business Vol 7 No 10 (2020) 897–907 901

estimate is based on a measure to determine how the system H5: Attitude toward use has a significant effect on the
allows a task to be carried out faster, increase productivity intention to use.
and performance, and work efficiency. Related to this,
hypothesis 1 is proposed as follows: In this study, we investigated the influence of external
factors, namely, social image, perceived trust, and perceived
H1: Perceived ease of use has a significant effect on risk. According to Goffman, social image is the social value
attitude toward the use. that everyone wants to create through interaction with others
(Goffman, 1967). In this research, social image is essential
In addition, it was found on the basis of other studies that because innovation can give users a feeling of uncertainty
ease of use in virtual and electronic banking communities about the consequences of its use, and, thus, give users the
has a positive impact in terms of usability (Muñoz-Leiva et opportunity to try other opinions and their personal experiences.
al., 2012). In connection with this, hypothesis 2 is proposed To maintain a different social image, the presence of others
as follows: around the user to strengthen or reject the image becomes
necessary. Thus, hypothesis 6 is proposed as follows:
H2: Perceived ease of use has a significant effect on
perceived usefulness. H6: Social image has a significant effect on perceived
ease of use.
In accordance with the original TAM model, perceived
usefulness has been applied to various fields of IT that are Besides, social image is also able to encourage the use
used to measure the performance of work, life, and study of mobile application services, as found in (Rejón-Guardia
(Liu & Li, 2011). According to Davis, perceived usefulness et al., 2020). Thus, hypothesis 7 is proposed as follows:
can be defined as the degree to which a person believes the H7: Social image has a significant effect on perceived
use of a system will improve the performance of his work usefulness.
(Davis, 1989). The variable is relevant in this study because
the digital banking application is considered innovative, In other researchers, the social image can also be able
and the usability given to consumers is closely linked to the to influence attitudes towards car banking services directly.
benefits it provides. Several studies have demonstrated a Therefore, hypothesis 8 is proposed as follows:
direct connection between perceived usefulness and attitude
(Aboelmaged & Gebba, 2013) and have a relationship with H8: 
Social image has a significant effect on attitude
the intention to use. In connection with this, hypothesis 3 is toward the use.
proposed as follows:
Traditionally, trust has been established through two
H3: Perceived usefulness has a significant effect on the primary components: the cognitive component that defines
attitude towards use. trust as the assumption that the word or commitment of
another party is trustworthy and fulfills obligations and
Studies on the effects of perceived usefulness on new the behavioral component that is characterized as the will
technologies have brought different results. Some studies or willingness to obey a particular pattern of behavior
support a significant and positive impact on the intention to (Liébana-Cabanillas et al.. In fact, most online transactions
use (Pham & Ho, 2015), although others have no substantial are practically no guarantee; consumers cannot ensure that
results in this connection (Liu & Li, 2011). Related to this, sellers will not use undesirable behavior. The creation of
hypothesis 4 is proposed as follows: trusts can compensate for these security and privacy concerns
so that companies look for appropriate and efficient ways
H4: Perceived usefulness has a significant impact on the to increase the perceived trust of their sales transactions.
intention to use. Therefore, hypothesis 9 is proposed as follows:

In addition, both TRA and TAM demonstrated that H9: Perceived trust does not have a significant effect on
attitude is a significant antecedent of intent when used to perceived risk.
evaluate particular behaviors. According to Fishbein and
Ajzen, attitude can be described as a multidimensional form, In this study, trust is suggested as an antecedent of ease of
which consists of three dimensions: cognitive, affective, or use, based on the premise that confidence reduces the need
emotional and connectivity or behavioral dimensions (Hill to understand, manage and track situations, to encourage the
et al., 1977). In accordance with the explanation above, use of resources without much effort for users. Therefore,
hypothesis 5 is proposed as follows: hypothesis 10 is proposed as follows:
902 Muhammad MUFARIH, Riyanto JAYADI, Yovin SUGANDI / Journal of Asian Finance, Economics and Business Vol 7 No 10 (2020) 897–907

H10: Perceived trust has a significant effect on perceived 3.  Methodology

ease of use.
The samples in this study are the customers of
Many studies also show a positive relationship between Bank Rakyat Indonesia (BRI) in the city of Yogyakarta
trust and attitude and between trust and risk (Park & and surrounding areas who use BRI’s digital banking
Tussyadiah, 2017). Therefore, hypothesis 11 is proposed as application. BRI is the largest state-owned bank in
follows: Indonesia, which has the most branch offices and is spread
all over the country. The choice of BRI digital banking users
H11: Perceived trust has a significant effect on attitude in Yogyakarta was chosen as the respondent because of the
toward the use. uniqueness of the character of the Yogyakarta people who
still maintain the Javanese custom, but are already used to
Each user behavior is associated with certain risks because mobile technology such as digital banking applications for
the consequences of that behavior cannot be adequately financial transactions.
assessed beforehand. Perceived risk is a multidimensional The number of customers who are respondents is 300 so
type based on several factors, which explain the overall risk that they meet the criteria for testing using SEM analysis.
associated with the implementation of specific innovations To conduct a hypothesis assessment, the researcher uses the
technologies, purchases or services. Various studies have Structural Equation Model (SEM) analysis because SEM
revealed that perceived risk negatively influences attitude can estimate multiple relationships and the relationship of
and intention to adopt e-commerce and mobile payment relationships when explaining measurement errors in the
systems (Muñoz-Leiva et al., 2017). In this study, perceived estimation process (Hair et al., 2010). SEM is a multivariate
risk is significant because it is considered as a prior intention statistical technique that can analyze latent variables, indicator
to use it. Therefore, hypothesis 12 is proposed as follows: variables and measurement errors directly. Researchers use
SEM because this model provides a conceptually, exciting
H12: Perceived risk does not have a significant effect on way of testing for testing a theory. If a researcher expresses
the intention to use. a theory that explains the relationship between the measured
variables, SEM assesses the suitability of the theory with
The model adopted in this study is shown in Figure 1. reality, as illustrated in the data.

Figure 1: TAM Model, Munoz-Leiva Modification (Muñoz-Leiva et al., 2017)

Figure 2: Digital Banking Application Menu

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Before conducting data analysis and interpretation, the Table 1: Goodness of Fit Model Test Results
questionnaire needs to be tested for its validity and reliability
first. This is intended to determine the extent of the accuracy GoF Index
Cut of Analysis Model
and accuracy of an instrument in carrying out the function Value Result Evaluation
of its measuring instrument or providing measurement
X2chi square <689,991 619,185 Good Fit
results that are following the level of validity and reliability
according to the specified limits. Probability ≥ 0,05 0,089 Good Fit
SEM assumption testing is often conducted, recognizing
that there are many conditions to be met in the SEM RMSEA ≤ 0,08 0,054 Good Fit
analysis, including criteria for sample size, no outlier data GFI ≥ 0,90 0,725 Marginal Fit
in the model, standard univariate and multivariate data and
no multicollinearity in model. To test the suitability of the AGFI ≥ 0,90 0,666 Not Fit
model, several Goodness of Fit Test (GOF) models are
CMIN/DF ≤ 2,00 1,991 Good Fit
used. This GOF measure consists of three, namely absolute,
comparative, and parsimony measures. The structural model TLI ≥ 0,95 0,895 Good Fit
compatibility test in SEM analysis is done by looking at
several criteria of Goodness of fit models such as Chi-Square CFI ≥ 0,95 0,907 Good Fit
value, probability, df, GFI, AGFI, TLI, CFI, RMSEA and
RMR.
The next test is the structural model fit test, which is by
4.  Result and Discussion looking at the Goodness of fit (GOF) criteria of the model,
such as Chi-Square value, probability, df, GFI, AGFI, TLI,
A validity and reliability test for each construct was CFI RMSEA and RMR. In Table 1 below shows the results
calculated to test the measurement model. Testing the of the model test, whether it meets the criteria of goodness of
construct’s validity can be achieved by looking at the value fit models that are good or not.
of each indicator’s load factor within the construct, while Hypothesis testing in this study is done by looking
the reliability of the construct can be done by looking at the at whether there is a significant influence of exogenous
Average Variance Extracted (AVE) and Construct Reliability variables on endogenous variables. A relationship called
(CR) values ​​of each construct. In this test, all indicators are significant at the 95% confidence level if the value of the
declared valid because the analysis results show that the Critical Ratio (CR) ≥ 1.96 or the probability value (p) ≤
Loading factor value of all indicator variable questions is> 0.05. Thus, it can be said that a hypothesis is accepted if the
0.5. Likewise, when construct reliability testing is carried out value of CR ≥ 1.96 or p-value ≤ 0.05, and vice versa, the
by looking at the AVE and CR values each construct. In this hypothesis is rejected if the value of CR <1.96 or p value>
test, all constructs are declared reliable because all indicator 0.05.
variables show the calculation of AVE> 0.5 and CR> 0.7. After analysing the data, in Figure 3 and Table 2, from
Another test performed is to test the SEM assumptions, 12 hypotheses submitted, eight hypotheses were accepted
including the sufficient number of samples, no outlier and four hypotheses were rejected. Perceived ease of use
data are available in the model, and the data is normally has a positive influence on perceived usefulness, but has
distributed. The number of samples used in this study is 300 no effect on attention toward use. Perceived usefulness
samples, which means the number of samples has exceeded apparently does not affect attitude toward use or intention
the adequacy requirements for the number of samples in to use. Nevertheless, the intention to use is positively
the SEM analysis. Outlier detection results show that of the influenced by attitude toward use. Social image, which is
300 data analyzed, there are no data that have an expensive an additional variable from the initial TAM theory model,
aerobic distance above 55.476, so it is considered that there was found to have a significant effect on perceived ease
are no outliers in the analyzed data. The normality test is done of use and on perceived usefulness, but did not influence
by looking at the value of CR skewness or kurtosis. The test attention toward use. While perceived trust is proven to
results show that the research data are typically distributed have no influence on perceived risk, so intention to use
because the univariate kurtosis values of ​​ all indicators are is indeed proven not to be affected by perceived risk.
in the interval -2.58<z<2.58 as well as the multivariate CR Besides that, it is also found that perceived trust has a
value of -2.308 indicating that the multivariate CR is in the significant influence on perceived ease of use and attitude
-2.58 interval <z <2.58 goodness of fit testing. toward use.
904 Muhammad MUFARIH, Riyanto JAYADI, Yovin SUGANDI / Journal of Asian Finance, Economics and Business Vol 7 No 10 (2020) 897–907

Figure 3: Result Model

Table 2: Significance Test Results

Hypothesis Estimate SE CR P Result

PEOU à AT .027 .136 .201 .840 Not Supp.
PEOU à PU .413 .107 3.846 .000 Supported
PU à AT .163 .133 1.230 .219 Not Supp.
PU à IU .006 .063 .100 .921 Not Supp.
AT à IU .571 .146 3.902 .000 Supported
SI à PEOU .340 .118 2.876 .004 Supported
SIà PU .441 .114 3.866 .000 Supported
SI à AT .127 .135 .936 .349 Not Supp.
PT à PR -.784 .100 -7.863 .000 Supported
PT à PEOU .607 .131 4.630 .000 Supported
PT à AT .559 .173 3.223 .001 Supported
PR à IU -.360 .127 -2.832 .005 Supported

The analysis shows that perceived use does not have applications. However, this hypothesis was rejected because,
a significant effect on attention toward use. This is for users of digital banking applications in Yogyakarta,
different from some other studies where perceived use it turns out that the perception of ease of use of a banking
has a significant effect on attention toward use. In this application does not give them the desire or attention to use
case, perception of convenience is not a determining the application. It will be proven later that attention to the use
factor in their behavioral attitudes using a digital banking of digital banking applications in Yogyakarta is influenced
application. The variable perceived ease of use has a by other factors. The variable perceived usefulness is proven
significant and positive effect on perceived usefulness. to have no significant effect on the intention to use. Indeed,
This shows that the higher the user’s perception of the there are several studies that produce different outputs. There
ease of use of the digital banking application, the better are studies that support a significant and positive effect on
the perception of the usefulness or benefits of the digital the intention to use (Pham & Ho, 2015), while other studies
banking application. Other research conducted on virtual do not show significant results for this relationship (Liu &
communities in the field of electronic banking also proves Li, 2011).
the same thing (Muñoz-Leiva et al., 2012). Testing the following hypothesis shows that attitude
The next hypothesis about perceived usefulness is toward using has a positive and significant effect on the
thought to have an influence on attitude to use digital banking intention to use, the higher the user’s attitude towards the
 Muhammad MUFARIH, Riyanto JAYADI, Yovin SUGANDI / Journal of Asian Finance, Economics and Business Vol 7 No 10 (2020) 897–907 905

digital banking application, the higher the user’s interest in The higher the user’s risk concern for the digital banking
using the digital banking application. Studies conducted with application, the lower the user’s interest in using the digital
the TRA and TAM models have shown that attitude is an banking application.
essential antecedent of intention when it is used to develop
specific behaviors. 5.  Conclusion
The results of the next hypothesis are that social image
has a significant effect on perceived ease of use; the higher User perception of the ease of use of the digital banking
the social image value of a digital banking application, the application is not a significant factor influencing customer
higher the confidence that the use of a particular system behavior. The digital banking application has become an
can reduce one’s efforts in doing something. In addition essential requirement for customers so that the perception
to studies from Munoz-Leiva, Goffman also said that of ease of use does not affect customer behavior towards
social image is the desired social value created by each the application. In addition, the perception of ease of use
person through interaction with others (Goffman, 1967), has an effect on the benefits felt by users, the higher the
so that if the interaction with people who have been using user’s perception of the ease of use of the digital banking
the same application, it will help improve perspective the application, the higher the perceived benefits of users of
convenience. In addition, the social image also has a positive the digital banking application. In other words, the digital
and significant effect on perceived usefulness. The more banking application is more beneficial for its users if the
positive the social image on the digital banking application, application is easy to use.
the higher the user’s perception of the benefits of the digital Perceived usefulness does not have a significant
banking application. Another study of mobile data service effect on attitude toward using or intend to use. This
has proven that social image can improve perceptions of the shows that the perception of benefits is not a factor that
benefits of service for users of mobile data services (Chong et influences the attitudes and interests of customers in the
al., 2012). However, towards attitude toward using, the social digital banking application. Although this digital banking
image has no significant effect on. This result is contrary to application is used by customers, the consideration of its
the two social image influences above, which are said to use is not because of the perceived benefits, but tends to
have a positive influence. However, if examined further, other factors, outside the benefits. Attitude toward use has
that in accordance with the previous discussion, that attitude a positive and significant effect on the intention to use,
toward using is not significantly affected by perceived ease the more positive the user’s attitude towards the digital
of use, so it becomes relevant if it is found here that social banking application, the higher the user’s interest in
image does not significantly influence attitude toward using. using the digital banking application. The social image
Perceived trust has a negative and significant effect has a significant influence on perceived ease of use and
on perceived risk; the higher the user’s trust in the digital perceived usefulness, but the effect is not significant on
banking application, the lower the user’s risk concerns for the attention toward use. This means that the better the social
digital banking application. The reason for this importance image on the digital banking application, the higher the
is because there is no guarantee for the customer that the perceived ease of use and benefits felt by users of the
seller will not use undesirable behavior, such as privacy digital banking application. On the other hand, social
violations, the use of unauthorized credit card information, image is apparently not a factor influencing customer
low prices or access to unauthorized transactions. Therefore, attitudes in using this application.
consumers will be affected by a sense of concern about Perceived trust has a significant effect on perceived
privacy and control over their personal information. In other risk, perceived ease of use and attitude toward using.
words, it can be explained that if the trust is embedded in an The higher the customer’s trust, the higher the user’s
application, that trust will weaken the user’s perspective of perception of the ease of use and user attitude of the
the risks arising from the use of the application. Analysis of digital banking application. As for perceived risk,
other hypotheses shows that perceived trust has a positive perceived trust has a negative and significant influence,
and significant effect on perceived ease of use, so the higher meaning that the higher the user’s trust in the digital
the customer’s trust in the digital banking application, the banking application, the lower the risk perceived by the
higher the user’s perception of the ease of use of the digital customer is using this application. Perceived risk has a
banking application. Similarly, the effect of perceived trust negative and significant effect on the intention to use,
on attitude toward using, which means the more confidence the higher the risk perceived by the user on the digital
the consumer has in the digital banking application, the more banking application, the lower the user’s interest in using
the attitude of the consumer toward the digital banking app. the digital banking application.
Finally, the effect of perceived risk on the intention Apart from the above conclusions, the discussion in this
to use is known to have a negative and significant effect. paper is only in a very limited scope, by taking the example
906 Muhammad MUFARIH, Riyanto JAYADI, Yovin SUGANDI / Journal of Asian Finance, Economics and Business Vol 7 No 10 (2020) 897–907

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