THE INFLUENCE OF PERCEIVED RISK ON DIGITAL BANKING TO CUSTOMER'S INTENTION TO USE DIGITAL BANKS IN JABODETABEK 2023-2024

• Main Author: Immanuel Louis, Evannia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/82819
• Institution: Institut Teknologi Bandung

This study aims to identify the perceived risk dimensions significant to the intention to use digital banks, addressing the gap between customer willingness and actual use. Digital banks, which operate primarily through online applications without physical offices, have become prominent, with 78% of Indonesians using them by 2021. Despite this, a disparity exists in which 69% of Indonesians expressed willingness to use digital banks, but only 32% actually do. This gap is attributed to perceived risks, as highlighted in previous Technology Adoption Model (TAM) research. This study delves into Perceived Risk Theory (PRT) to analyze perceived risk dimensions. The objective is to understand how perceived risks influence intention to use, identify the most impactful risk factor, and explore correlations between variables. Six perceived risk dimensions—financial, performance, social, time, security, and privacy—were examined. This quantitative research targeted bankable individuals in Jabodetabek, using cross-sectional data from 2023-2024. A sample of 400 respondents, determined through Slovin method and purposive sampling, provided data from an online questionnaire. The analysis involved descriptive statistics in SPSS and Structural Equation Modeling in SmartPLS, with bootstrapping and a two-tailed ttest. Findings indicate that perceived risk levels are low, with security risk being the sole significant factor, showing a negative correlation of 30.3%. It is worth to note that these findings were found on predominantly Gen-Z respondents, hence the low perceived risks. Practical recommendations for digital bank managers include enhancing encryption and firewalls, twofactor authentication, and conducting security audits to reduce perceived security risks, potentially increasing user intention. Future research should consider a longitudinal study, other variables, and cultural differences as a contributing factor. This study aims to aid digital bank managers in mitigating perceived risks and boosting customer intention to use digital banks.