Assessing the Optimal Digital Banking Model for Service Users in Thailand: A Structural Equation Modelling Approach to Risk Analysis

Abstract

Purpose –This study investigates the factors that influence the adoption of internet banking in Thailand. It specifically examines the interplay between six dimensions of perceived risk (financial risk, performance risk, privacy risk, security risk, social risk, and time risk), attitude, and trust, and their impact on behavioral intentions to use internet banking.Design/methodology/approach –A multi-stage sampling process was used to obtain a representative sample of 505 respondents in Thailand. Structural Equation Modeling (SEM) was used to analyze the data.Findings –The research outcomes suggest that the adoption and usage of internet banking services are influenced by several key factors, namely perceived risk, attitude, and trust. These factors play a significant role in shaping individuals' decisions and behaviors when it comes to engaging with online banking platforms. The findings also show that attitude and trust mediate the relationship between perceived risk and behavioral intention. Practical implications of this study extend to two key groups: internet banking developers, who can leverage the insights from this research to design user-centric systems aligned with the needs and lifestyles of their target users, and CEOs, who can establish effective and operational strategies and regulations to provide a competitive advantage for their organizations. Originality/value –This study contributes to the existing literature on internet banking adoption by providing a comprehensive understanding of the factors that influence this behavior. It also provides insights for internet banking developers and CEOs on how to design and promote internet banking services in a way that minimizes perceived risk and maximizes attitude and trust.