A Study on the Factors Influencing Customer Awareness and Adoption of AI-Powered Digital Banking Services

Author

Jennifer S,Akila S


Abstract

 AI-powered features such as chatbots, fraud detection and personalised recommendations are becoming a regular part of digital banking, but their benefits depend on whether customers are aware of them and choose to use them. This study examines the factors influencing customer awareness and adoption of AI-powered digital banking services, considering awareness and perceptions, perceived usefulness, ease of use, time saving, convenient access, digital literacy, consumer concerns and consumer trust. A descriptive research design was used, and primary data were gathered from 50 digital banking users, selected through purposive sampling, using a Google Forms questionnaire. The data were analysed using percentage analysis, descriptive statistics, Pearson correlation and multiple regression. The results revealed that 80.0% of respondents are aware that AI-powered features are available in digital banking, while 80.0% to 88.0% are concerned about the security and privacy of their information. The regression model was significant (RZ = 0.60, F = 10.53, p = 0.000), with time saving (B = 0.78) and convenient access (B = 0.50) emerging as significant positive factors, and time saving showed the strongest correlation with adoption (r = 0.645, p = 0.000). Banks can use the results to improve awareness, transparency and trust in their AI-powered digital banking services.



Keywords

AI-Powered Digital Banking, Customer Awareness, Adoption, Digital Literacy, Consumer Trust, Perceived Usefulness



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References


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