Abstract: This study explores the factors related to customer behavior influencing digital banking adoption in the context of Cyprus. Specifically, it examines key variables through the Technology Acceptance Model (TAM) framework, focusing on four critical components: perceived usefulness, perceived ease of use, security and trust, and awareness. By adopting a quantitative research approach, the study employs a structured survey methodology, with data collected from 234 respondents. The responses were analyzed using multiple regression techniques to investigate the relationships between the independent variables and the adoption of digital banking services.
The findings indicate that all four variables—perceived usefulness, perceived ease of use, security and trust, and awareness—have a positive and statistically significant influence on the adoption of digital banking. These results underline the importance of understanding customer behavior and preferences in shaping digital banking solutions. For instance, perceived usefulness and ease of use highlight the need for intuitive and user-friendly platforms, while security and trust emphasize the critical role of robust cybersecurity measures. Similarly, awareness underscores the importance of educational campaigns to familiarize customers with digital banking technologies.
This study offers valuable insights for financial organizations, helping them devise strategic initiatives tailored to customer needs and preferences. By leveraging these findings, organizations can enhance customer satisfaction and drive the widespread acceptance of digital banking services in Cyprus. Moreover, the study’s implications extend to policymakers and practitioners, offering guidance to promote digital transformation in the banking sector and create a supportive ecosystem for financial technology innovation.
The results also emphasize the broader relevance of these factors, particularly for smaller European economies that share similar challenges and opportunities in digital banking adoption. These findings serve as a foundation for further research and practical strategies aimed at accelerating digital transformation in the financial sector.
Keywords: Digital banking adoption, Customer behavior, Technology Acceptance Model (TAM), Cyprus banking sector, Quantitative research.
Title: Determinants of the adoption of Digital Banking: A Study of Cyprus
Author: Dorotheou Doros
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 12, Issue 2, October 2024 - March 2025
Page No: 195-207
Research Publish Journals
Website: www.researchpublish.com
Published Date: 27-January-2025
