Factors affecting customer’s intention to use digital loan application system evidence from selected banks in Ghana

Abstract

This study aims to examine factors affecting the usage of digital loan application systems in the traditional banking sector. This study used the cross-sectional survey research design with a quantitative approach of data analysis to collect data. A survey questionnaire was the main research instrument used in this study. The two hundred and sixty-six customers of selected banks were purposively selected for the study. Structure equation modelling generated using LISREL was used in the analysis of the data to answer research questions with its associated hypothesis. The findings of the study revealed that the performance expectancy of the UTUAT model has a statistically significant effect on customers’ behavioural intention to use the digital loan application system. Also, Massage factors introduced by the Yale model of communication and persuasion influence customers’ behavioural intention to use digital loan application systems. Interestingly, the study indicated that multi-model digital literacy has a positive significant effect on customers’ behaviours intention and usage behaviour. However, on the contrary, online load fraud has a negative on customers’ behavioural intentions. The findings of this study enable policymakers in banking sectors to improve digital loan application systems and further introduce new policies to increase its use for more borrowing to improve the banks’ profitability. Theoretical contributions and managerial implications are also discussed in chapter five of this research.