Factors Affecting the Intention to Use "Beyond Banking Services" via Banking Application: The Case of Vietnam

Abstract

Purpose: This paper examines the factors influencing customers’ intention to adopt "beyond banking services" offered through banking apps. As the "Bank-as-a-Platform" model becomes increasingly popular, banks are expanding their offerings to include non-traditional banking services, referred to as "beyond banking services" via their banking apps. The lack of deep customer insights, combined with the competitive pressure from well-established shopping platforms, creates an urgent need for research to explore the specific drivers of customer behavior in adopting "beyond banking services" through banking apps. Design/methodology/approach: This study employs Structural Equation Modeling to analyze data from a survey of 507 mobile banking customers. The conceptual model is grounded in the UTAUT2 model, incorporating extended constructs such as perceived novelty and perceived security to better capture the unique characteristics of non-financial services purchasing behavior through banking apps. Findings: The results indicate that the adoption of "beyond banking services" is influenced by social influence, mobile banking usage habits, price-value perception, perceived novelty, and perceived security. Contrary to prior expectations, performance expectancy, effort expectancy, and hedonic motivation were found to have no significant impact on behavioral intention. Research limitations/implications: The survey participants were primarily young individuals located in Hanoi, which may limit the generalizability of the findings to other age groups or regions. Besides, the customer usage intention may be influenced by other factors. Future research should consider mediation variables to better understand the underlying dynamics of these relationships. Originality/value: This research highlights the factors influencing consumer behavior regarding the adoption of "beyond banking services" through mobile banking apps, revealing that customers are more influenced by factors beyond performance and effort expectancy and entertainment value. The findings offer valuable insights for banks and third-party companies to enhance customer engagement and increase wallet share amidst the growing competition from fintech firms, big tech companies, and traditional banks.