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The Adoption of Online Internet Banking in Islamic Banking Industry
Ratna Sundari Johar Sukadi (a*) Dwi Suhartanto (b)

a) Applied Master Of Islamic Banking Finance, Bandung polytechnic.
JL. Gegerkalong Hilir, Desa Ciwaruga, Kecamatan Parongpong, Kabupaten Bandung Barat.Indonesia
*ratna.sundari[at]polban.ac.id


Abstract

The new era of Industry 4.0 is marked by, among others, digitalization and automation in every aspects. For banking industry, this era offers a great opportunity by providing technology-based governance tools. This governance technology has changed the way banks operate and offer products and services to their customers by reducing geographical constraints and the costs of financial transactions. Although the importance of technology in the banking industry is widely recognized, concern for the challenges in this digitalization and automation era in the Islamic banking sector is still not well developed. This study is conducted to investigate the factors influencing Islamic bank-s consumers in adopting online internet banking. To test the hypotheses developed, this study uses the extended theory of The Unified Theory of Acceptance and Use of Technology (UTAUT) consisting of expected performance, effort expectations, social influences, facility conditions, and religious factors. This study utilizes 250 Islamic banking customers as the sample, gathered from Bandung and Jakarta. Using Partial Least Square Modelling as the data analysis method, the results reveals that the expected performance and religious factor are the most important determinants for Islamic banking customers to adopt online services. This research extends the existing knowledge of internet banking adoption in the context of Islamic banking. From a practical perspective, this study provides a guidance and strategy for Islamic bank managers to encourage their customers to adopt online internet banking services.

Keywords: Internet adoption, performance expectations, effort expectations, social influences, facilities condition, and religious influences

Topic: Industrial Engineering

Link: https://ifory.id/abstract/jfy7aWgnLFA4

Conference: 2nd International Conference on Informatics, Engineering, Science and Technology (INCITEST 2019)

Plain Format | Corresponding Author (Ratna sundari Johar)

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