Understanding the determinants of digital adoption in financial institutions: An application of the technology acceptance model

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Abstract

Access to essential banking and financial services is unequally distributed, and this is causing the high risk of financial exclusion globally. India is no exception, and hence, financial inclusion has become an important field for research. To this end, this paper aims to study the impact of digitalisation on the actual usage of banking and financial services among the underprivileged community. To achieve the objectives, researchers have based their study on the technology acceptance model (TAM), focusing on factors such as perceived ease of use (PEU) with perceived usefulness (PU) and intention to use (INT), and intention to use with the actual usage (US) (Rakipi et al., 2023). A sample of 150 individuals has been investigated in this research. The data have been collected using a convenience sampling technique. However, perceived ease of use has no significant direct relationship with intention to use. This broadens the horizon of our knowledge. The findings indicate that users may not find it easy to use technology, and hence do not intend to use digital financial/banking services. At the same time, they perceive this new technology as easy and useful without creating an intention to use it. Banking professionals, industry experts, and policymakers should address this issue by incorporating it into strategies and policies aimed at enhancing financial inclusion.

Keywords: Digitalisation, Financial Inclusion, Banking Services, TAM, PLS-SEM

Authors’ individual contribution: Conceptualization — Man.A.; Methodology — N.M.; Software — Moh.A.; Validation — N.M.; Formal Analysis — N.M. & Moh.A.; Investigation — H.N.; Writing — Original Draft — Man.A., N.M., and Moh.A.; Writing — Review & Editing — N.M., Moh.A., and H.N; Supervision — M.I.T. and L.N.D.; Project Administration — M.I.T. and L.N.D.; Funding Acquisition — M.I.T. and L.N.D.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D83, G21, I32, M15, O33

Received: 19.12.2024
Revised: 31.03.2025; 06.05.2025; 29.09.2025
Accepted: 06.10.2025
Published online: 07.10.2025

How to cite this paper: Ahmed, M., Mushir, N., Anas, M., Tabash, M. I., Daniel, L. N., & Naim, H. (2025). Understanding the determinants of digital adoption in financial institutions: An application of the technology acceptance model [Special issue]. Risk Governance and Control: Financial Markets & Institutions, 15(3), 311–322. https://doi.org/10.22495/rgcv15i3sip13