Social Media Banking: A review and investigation into intentions to use

Abstract

The banking industry has evolved from predominantly face-to-face interactions to new forms of banking facilitated by digital devices and interfaces. Interactions between banks and their customers now occur in person, over the internet, via mobile devices and social media. Online banking penetration has risen from 30% in 2017 to 69% in 2018. Of particular interest is the use of social media to perform transactions such as funds transfers, account opening and bill payments. Understanding how bank customers intend to use and adopt the technology can be valuable for banks and the development teams that design the products.

Whilst there has been a range of studies on mobile and internet banking, the study of Social Media Banking and attitudes towards the adoption and intention to use are limited. This study is valuable at a time when Social Media Banking services are still emerging in many developed and developing nations. This study aims to provide a general understanding of Social Media Banking and its services. It also investigates factors that affect intention to use Social Media Banking and the relationship between the factors.

An approach to understanding how people intend to use a certain technology is through technology acceptance models and theories. A proposed model was developed based around existing model (Unified Theory of Acceptance and Use of Technology (UTAUT). The new model integrates key constructs from the UTAUT model in addition to the following constructs: trust, perceived risk, and motivation. A quantitative approach was adopted and data collected using a survey questionnaire. Statistical analysis was carried out using SPSS and AMOS. The hypotheses were tested using Structural Equation Modelling. The subjects of the study are UK university students (n=279). Six out of eleven hypotheses were supported. The findings of this research reveals that confidentiality, trust, privacy and data security were the most important factors to intending
users of Social Media Banking. The results revealed that performance expectancy and trust are significant determinants of customers’ intention to use Social Media Banking.

The contributions of this research provides valuable insight into how Social Media Banking has evolved, and fills the gap in literature relating to Social Media Banking. It also contributes to the body of knowledge in technology acceptance research and presents a new model that incorporates trust and perceived risk in explaining intentions to use Social Media Banking by potential users.

More information

Identifiers

Catalogue record

Export record