Electronic Banking Services Adoption in Pakistan: Extending The Unified Theory of Acceptance and Use of Technology (UTAUT2) Model among Pakistani Consumers

Abstract

Pakistan's banking sector has shown notable commitment to embracing modern financial services, like electronic banking, mobile banking, and payments through mobiles, electronic wallets, and engagement with these services. This study primarily aims to assess customer receptiveness toward adopting diverse e-banking services within emerging economies. The study employs the UTAUT2 framework, Unified Theory of Acceptance and Use of Technology, and extends it by incorporating additional components: awareness, security and privacy as a mediator and trust as a moderator. A survey-based approach gathered responses from 250 customers, and covariance-based structural equation modelling (CB-SEM) was employed for testing hypotheses. An empirical examination of the UTAUT2 model sheds light on the relationship between its dimensions and individuals' inclination to use e-banking services. The study highlights the significance of recently integrated variables in explaining consumers' willingness to embrace electronic banking services, offering valuable insights for the banking industry and contributing to the existing knowledge base. Additionally, the study provides recommendations for banks to enhance customer satisfaction and also to develop such strategies that will be helpful in attracting customers towards the usage of electronic services offered by the banks.