Integration of Unified Theory of Acceptance and Use of Technology(UTAUT): An Empirical Study on Internet Banking Acceptance in Pakistan

Abstract

In the rapidly changing financial sector, digital banking (internet-based banking) has become a pivotal driver of financial inclusion, fundamentally transforming how individuals access financial services. This shift is fueled by the widespread adoption of internet-based banking solutions, which have revolutionized access to banking by making services more inclusive, efficient, and convenient than ever before. This study aims to explore the factors influencing the acceptance and continuance use of internet based digital banking in Pakistan by integrating the Unified Theory of Acceptance and Use of Technology (UTAUT) with Delone and McLean’s information system success model (DMIS). The research seeks to address the growing need for a deeper understanding of the determinants driving user adoption of digital banking and Fintech services in a developing country context. By identifying these factors, the study provides insights into how these technologies can achieve broader acceptance among Pakistani consumers. The research employs a quantitative methodology, collecting data through a structured survey from a diverse sample of internet banking users in Pakistan. The UTAUT2 framework, encompassing constructs such as performance expectancy, effort expectancy, social influence, facilitating conditions, hedonic motivation, price value and habit with all moderators (age, Gender and experience) is utilized as the theoretical basis for the study. Statistical analyses, including Structural equation modelling (SEM), multigroup analysis (MGA), Necessary condition analysis (NCA) and Importance Performance Map Analysis (IPMA) areconducted to test the proposed hypotheses and examine these relationships. The result identified significant impact of satisfaction, facilitating conditions and habit on continuance usage intention of internet banking in Pakistan. Furthermore, the results also supported the role of service quality and facilitation condition on customer satisfaction of internet banking Users. The research also studied the moderating role of age, gender and experience on the continuance usage intention of internet banking using multigroup analysis and identified significance impact of facilitating conditions and habit on age (young and old), gender (male and female) and experience (less experienced and more experienced). These findings underscore the importance of tailoring digital platforms to meet user expectations and providing supportive environments to enhance continuance usage intention of internet banking which will lead to increase in financial inclusion. This study has important implications for banking institutions, Fintech companies, and policymakers. By understanding the key drivers of continuance usage of digital banking, stakeholders can design targeted strategies to address user concerns, improve customer experiences, and promote the continued usage of internet banking leading to financial inclusion which is very important in the context of Pakistan to move forwards towards digitalization. services. The findings also contribute to the theoretical understanding of technology acceptance in the context of developing economies, offering a foundation for future research in this domain.