Beyond conventions: Unravelling perceived value's role in shaping digital-only banks' adoption

Advancements in FinTech and Industry 4.0 have made digital financial services more convenient and cost-effective, leading customers to expect them to be fun and offer higher perceived value. Therefore, this research investigates the determinants of digital-only banks' perceived value and its mediating role on the relationship between behavioural intention determinants and the intention to adopt digital-only banks. The data was collected through an online survey conducted among Klang Valley residents. Stratified random sampling was used to gather the data and structural equation modelling (SEM) was applied for the data analysis. The findings revealed that perceived value is a significant predictor of the intention to adopt digital-only banks. Furthermore, perceived convenience, economic efficiency, functional risk, trust, and environmental concern determined the perceived value of digital-only banks. However, security risk, critical mass, and number of services were non-significant predictors of perceived value. Notably, perceived value plays a significant mediating role between certain determinants and adoption intention. This research adds value by revealing multifaceted determinants of perceived value and incorporating environmental concern that highlights the significance of green perceived value in shaping adoption intention. Furthermore, it provides empirical results on a research gap related to digital-only banks' perceived value mediating effect on the intention to adopt these banks. Finally, the study can assist the practitioners of digital-only banks in attracting and retaining users in this modern competitive banking and financial market.