Journal of Applied Finance & Banking

Sustainable Digital Banking Adoption: Extending the Technology Acceptance Model with Trust, Risk, and ESG Factors

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• Abstract

   

  This study investigates the adoption of online banking in Taiwan by extending the Technology Acceptance Model (TAM) to incorporate trust, perceived risk, and environmental, social, and governance (ESG) factors. Drawing on survey data from 250 respondents and employing Structural Equation Modeling (SEM), the research confirms that perceived usefulness and ease of use remain critical determinants of behavioral intention. Trust emerged as a vital mediator, while perceived risk negatively influenced adoption. Importantly, the findings reveal that both perceived ESG and behavioral ESG practices significantly shape customer trust, behavioral intention, and actual system use, underscoring the growing role of sustainability in digital finance. The results highlight a reciprocal relationship between perceived and behavioral ESG, where customer perceptions incentivize banks to implement substantive ESG actions. The study contributes theoretically by integrating TAM with sustainability perspectives and offers practical insights for banks and policymakers to promote secure, inclusive, and sustainable digital banking.

   

  JEL classification numbers: G21, O33, Q56.

  Keywords: Online Banking Adoption, Technology Acceptance Model, Trust, Perceived Risk, ESG.