A Conceptual Framework for Understanding User Behaviour Towards Digital Financial Services: An Extension of the Technology Acceptance Model
DOI:
https://doi.org/10.64882/ijrt.v14.iS1.985Keywords:
Digital Financial Services, Digital Financial Literacy, Technology Acceptance Model (TAM), Social Influence, Behavioural IntentionAbstract
The rapid expansion of digital financial services (DFS) has transformed financial access and transactions, particularly in developing economies. Despite substantial policy support and technological advancement, the adoption and sustained use of digital financial services remain uneven, especially in rural and semi-urban regions. Understanding user behaviour towards digital financial services is therefore critical for achieving inclusive and sustainable digital finance. Research in the past has thoroughly used the Technology Acceptance Model (TAM) to explain the adoption of technology on the basis of perceived usefulness and perceived ease of use. However, the complexity of digital financial services, as characterized by financial risk, security concerns, trust issues, and varying user capabilities, has shown that TAM alone is incapable of explaining adoption behaviour fully.
The paper proposes a comprehensive conceptual framework that extends the Technology Acceptance Model to better understand user behaviour towards digital financial services. Building on TAM, the proposed framework integrates perceived usefulness, perceived ease of use, trust, perceived risk, social influence, and digital financial literacy as key antecedents influencing behavioural intention, which subsequently leads to actual usage behaviour. By incorporating behavioural, social, and capability-based factors, the framework provides a more holistic and context-sensitive explanation of digital financial service adoption.
Hence, the paper adds to the existing literature by proposing an integrated theoretical model that can guide future empirical research. The proposed framework also offers practical insights for policymakers, regulators, financial institutions, and FinTech firms seeking to design effective strategies to enhance digital financial literacy, build trust, reduce perceived risk, and promote inclusive and sustainable adoption of digital financial services, particularly in rural and semi-urban contexts.
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