What Drives Customers to Choose Branchless Banking? An Empirical Study Using the Analytic Hierarchy Process
DOI:
https://doi.org/10.15575/ks.v7i3.45477Keywords:
Analytic Hierarchy Process, Perception of Ease, Perception of Risk, Perception of Trust, Perception of UsefulnessAbstract
This study aims to analyze customer preferences in choosing Branchless Banking services by examining various perceptions that influence their decision-making. The research focuses on four key factors: Perceived Ease of Use, Perceived Trust, Perceived Usefulness, and Perceived Risk. The Branchless Banking services evaluated in this study include BRILink, Agen46, and Mandiri Agen, platforms developed by major banks in Indonesia to expand financial services through agent-based networks. A mixed-methods approach was employed, combining quantitative analysis using the Analytic Hierarchy Process (AHP) and the Expert Choice software with qualitative insights to enrich the interpretation of results. Data were collected from 100 respondents with experience using all three services, ensuring a relevant and comprehensive evaluation. The findings reveal that Perceived Ease of Use is the most dominant factor influencing customer choice, with a weight of 39.40%, followed by Perceived Usefulness at 23.90%. Trust ranked third at 22.30%, while Risk had the lowest weight at 14.30%. Further analysis indicates that BRILink is the most preferred branchless banking service, scoring the highest (45.5%) across all criteria: Perceived Ease of Use, Perceived Usefulness, Trust, and Risk. These results suggest that BRILink aligns best with customer expectations across the evaluated dimensions. The study offers strategic insights for financial institutions to enhance agent banking services through a customer-centric approach.
References
Abdul-Rahim, R., Bohari, S. A., Aman, A., & Awang, Z. (2022). Benefit–Risk Perceptions of FinTech Adoption for Sustainability from Bank Consumers’ Perspective: The Moderating Role of Fear of COVID-19. Sustainability (Switzerland), 14(14). https://doi.org/10.3390/su14148357
Adiandari, A. M. (2023). Navigating the Digital Society: Financial Literacy as a Tool for Empowerment. Khazanah Sosial, 5(4), 661–671. https://doi.org/10.15575/ks.v5i4.30792
Ahmed, R., Chowdhury, S., & Yasmin, S. (2023). Customer trust and risk perception in mobile financial services: Evidence from rural South Asia. Journal of Financial Services Marketing, 28 (4), 371–389. https://doi.org/10.1057/s41264-023-00101-0
Alalwan, A. A., Dwivedi, Y. K., Rana, N. P., & Williams, M. D. (2023). Factors influencing customer trust in digital financial services: A meta-analysis and conceptual framework. Information Systems Frontiers, 25 (1), 103–124. https://doi.org/10.1007/s10796-023-10399-7
Alamanda, D. T., Wibowo, L. A., Munawar, S., & Nisa, A. K. (2021). The interest of technology adoption in e-commerce mobile apps using modified unified theory of acceptance and use of technology 2 in Indonesia. International Journal of Applied Business and International Management (IJABIM), 6(3), 35-45.
Al Rubaiai, I., & Pria, S. (2022). Customer Usage Behavior of FinTech Products in Sultanate of Oman. International Journal of Research in Entrepreneurship & Business Studies, 3(3), 11–24. https://doi.org/10.47259/ijrebs.332
Amin, M., Isa, Z., & Fontaine, R. (2024). Customer experience and loyalty in digital banking: The roles of empathy and assurance. Journal of Retailing and Consumer Services, 76, 103456. https://doi.org/10.1016/j.jretconser.2023.103456
Amita, N. L. (2015). Pengaruh Persepsi Kegunaan, Persepsi Kemudahan, Persepsi Risiko Terhadap Minat Menggunakan Layanan Produk BRILink (Studi pada Masyarakat di Kota Kediri). Jurnal Ilmiah Mahasiswa FEB Universitas Brawijaya, 4, 1–15.
Amita, N. L. (2016). Pengaruh Persepsi Kegunaan, Persepsi Kemudahan, Persepsi Risiko Terhadap Minat Menggunakan Layanan Produk BRILink. Jurnal Ilmiah Mahasiswa Fakultas Ekonomi Dan Bisnis Universitas Brawijaya, 4(1), 1–15.
Balakrishnan, J., Dwivedi, Y. K., Hughes, L., & Boy, F. (2021). Enablers and Inhibitors of AI-Powered Voice Assistants: A Dual-Factor Approach by Integrating the Status Quo Bias and Technology Acceptance Model. Information Systems Frontiers. https://doi.org/10.1007/s10796-021-10203-y
Balubaid, M., & Alamoudi, R. (2015). Application of the Analytical Hierarchy Process (AHP) to Multi-Criteria Analysis for Contractor Selection. American Journal of Industrial and Business Management, 5(September), 581–589.
Bommer, W. H., Rana, S., & Milevoj, E. (2022). A meta-analysis of eWallet adoption using the UTAUT model. International Journal of Bank Marketing, 40(4), 791–819. https://doi.org/10.1108/IJBM-06-2021-0258
Chopra, S., & Sherry, A. M. (2014). Enhancing branchless banking technology solutions for improving consumer adoption. Science Journal of Business Management, 1–15. https://doi.org/10.7237/sjbm/297
Creswell, J. W., & Plano Clark, V. L. (2018). Designing and Conducting Mixed Methods Research (3rd ed.). SAGE Publications.
Diniz, E., Birochi, R., & Pozzebon, M. (2012). Triggers and barriers to financial inclusion: The use of ICT-based branchless banking in an Amazon county. Electronic Commerce Research and Applications, 11(5), 484–494. https://doi.org/10.1016/j.elerap.2011.07.006
Elahi, T., & Khan, S. (2024). User preference in digital financial transactions: Weighing cost versus reliability in low-income contexts. International Journal of Bank Marketing, 42 (1), 50–69. https://doi.org/10.1108/IJBM-09-2023-0453
Faradila, R. S. N., & Soesanto, H. (2016). Analisis Pengaruh Persepsi Kemudahan Penggunaan dan Persepsi Manfaat terhadap Minat Beli dengan Kepercayaan Sebagai Variabel Intervening. Jurnal Studi Manajemen & Organisasi, 13, 149–160.
Fred D. Davis. (1989). Perceived usefulness, perceived ease of use, and user acceptance of IT. MIS Quarterly, 13(3), 319–340. Retrieved from http://www.jstor.org/stable/249008
Hair, et al. (2017). Multivariate Data Analysis (Seventh Ed). New Jersey: Pearson Prentice Hall.
Hamzah, M. F., Razak, T. M. T. A., Yahaya, C. K. H. C. K., Shamsuddin, Z., & Zahrin, S. N. A. (2022). Adoption Factors of FinTech Products & Services in Islamic Banking Industry in Malaysia: A Literiture Review. Journal of Positive School Psychology, 6(3), 8883–8893. Retrieved from https://journalppw.com/index.php/jpsp/article/view/5207%0Ahttps://journalppw.com/index.php/jpsp/article/download/5207/3411
Hassan, M. S., Islam, M. A., Sobhani, F. A., Nasir, H., Mahmud, I., & Zahra, F. T. (2022). Drivers Influencing the Adoption Intention towards Mobile Fintech Services: A Study on the Emerging Bangladesh Market. Information (Switzerland), 13(7), 1–16. https://doi.org/10.3390/info13070349
Hossain, M. T., Arefin, M. S., & Islam, R. (2024). Trust formation in mobile financial services: Role of service agents and customer experience in low-income communities. Journal of Financial Services Marketing, 29 (1), 28–45. https://doi.org/10.1057/s41264-024-00112-9
Huang, T. (2021). Research on the use intention of potential designers of unmanned cars based on technology acceptance model. PLoS ONE, 16(8), 1–17. https://doi.org/10.1371/journal.pone.0256570
Kesa, D. D., Nurfikri, A., & Lee, C. (2024). Evaluation of the Village Financial Information System ( SISKEUDES ) in Enhancing Governance and Financial Transparency in Indonesian Village Administration. Khazanah Sosial, 6(3), 427–446. https://doi.org/10.15575/ks.v6i3.38933
Khanan, P. (2016). Aspek Yuridis Keberadaan Agen dalam Model Branchless. Private Law, IV Nomor 1.
Kochar, A. (2018). Branchless banking: Evaluating the doorstep delivery of financial services in rural India. Journal of Development Economics, 135, 160–175. https://doi.org/10.1016/j.jdeveco.2018.07.001
Kurila, J., Lazuras, L., & Ketikidis, P. H. (2016). Message framing and acceptance of branchless banking technology. Electronic Commerce Research and Applications, 17, 12–18. https://doi.org/10.1016/j.elerap.2016.02.001
Lee, J. M., & Kim, H. J. (2020). Determinants of adoption and continuance intentions toward Internet-only banks. International Journal of Bank Marketing, 38(4), 843–865. https://doi.org/10.1108/IJBM-07-2019-0269
Mahmud, K., Joarder, M. M. A., & Muheymin-Us-Sakib, K. (2022). Adoption Factors of FinTech: Evidence from an Emerging Economy Country-Wide Representative Sample. International Journal of Financial Studies, 11(1), 9. https://doi.org/10.3390/ijfs11010009
Marhaeni, A. A. I. N., Jermsittiparsert, K., Sudarmo, Indrawati, L. R., Prasetyo, A., Fuada, N., … Aljuaid, M. (2023). Adoption of the Green Economy through Branchless Rural Credit Banks during the COVID-19 Pandemic in Indonesia. Sustainability (Switzerland), 15(3). https://doi.org/10.3390/su15032723
Mohamed, T. S., & Elgammal, M. M. (2023). Does the extent of branchless banking adoption enhance the social and financial performance of microfinance institutions? International Journal of Islamic and Middle Eastern Finance and Management, 16(5), 1009–1029. https://doi.org/10.1080/00036846.2023.2177595
Mohan, G. S., & Viswanathan, P. K. (2018). Branchless Banking – A narrative review. International Journal of Pure and Applied Mathematics, 118(18), 4781–4784.
Mtambalika, A., Davis Manda, T., Gombachika, H., & Kunyenje, G. (2016). Branchless banking in rural Malawi: Potential customers’ perspective on bank-led mobile banking. 2016 IST-Africa Conference, IST-Africa 2016, 1–11. https://doi.org/10.1109/ISTAFRICA.2016.7530701
Muthinja, M. M., & Chipeta, C. (2017). What Drives Financial Innovations in Kenya’s Commercial Banks? An Empirical Study on Firm and Macro-Level Drivers of Branchless Banking. Journal of African Business, 19(3), 385–408. https://doi.org/10.1080/15228916.2017.1405705
Otoritas Jasa Keuangan, O. (2024). Data Inklusi Keuangan.
Palaon, H., Wiryono, S. K., & Faturohman, T. (2020). Branchless banking agents: Business satisfaction, continuity, and viability. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1823585
Pavlou, P. A. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 7(3), 101–134. https://doi.org/10.1080/10864415.2003.11044275
Pervin, T., & Sarker, B. K. (2021). The Evolution and Prospect of Agent Banking in Bangladesh : A Study Based on Bangladesh Banking Sectors. Journal of Business Management and Economic Research, 5(4), 121–134. https://doi.org/10.29226/TR1001.2021.271
Pilemalm, S., Lindell, P., Hallberg, N., & Eriksson, H. (2007). Integrating the Rational Unified Process and participatory design for development of socio-technical systems: a user participative approach. Design Studies, 28(3), 263–288. https://doi.org/10.1016/j.destud.2007.02.009
Priambodo, S., & Prabawani, B. (2016). Pengaruh Persepsi Manfaat, Persepsi Kemudahan Penggunaan, dan Persepsi Risiko Terhadap Minat Menggunakan Layanan Uang Elektronik (Studi Kasus pada Masyarakat di Kota Semarang). Jurnal Ilmu Administrasi Bisnis, 5.
Prior, F., & Mora, T. (2019). Quantitative Study on the Impact of Branchless Banking on Microfinance Institutions. Annals of Public and Cooperative Economics, 90(4), 641–668. https://doi.org/10.1111/apce.12252
Qazi, S. W., & Khushk, H. A. (2019). Fueling women empowerment? A phenomenological study of women experiences with micro-credit and status of branch-less banking in Pakistan. International Journal of E-Business Research, 15(1), 75–88. https://doi.org/10.4018/IJEBR.2019010105
Rachmawati, R., Farda, N. M., Rijanta, R., Setiyono, B., Alfianita Hapsari, S., Ramadhan, E., & Dwi Dharmawan, R. (2019). The Comparison between the Uses of Branchless Banking in Urban and Rural Areas: Geographical Perspective. IOP Conference Series: Earth and Environmental Science, 338(1), 0–9. https://doi.org/10.1088/1755-1315/338/1/012016
Rachmawati, R., Farda, N. M., & Setiyono, B. (2020). Model of agents-based branchless banking services development in urban and rural area. Indonesian Journal of Geography, 52(1), 69–79. https://doi.org/10.22146/ijg.48452
Reaves, B., Bowers, J., Scaife, N., Bates, A., Bhartiya, A., Traynor, P., & Butler, K. R. B. (2017). Mo(bile) money, mo(bile) problems: Analysis of branchless banking applications. ACM Transactions on Privacy and Security, 20(3). https://doi.org/10.1145/3092368
Rouidi, M., Elouadi, A. E., Hamdoune, A., Choujtani, K., & Chati, A. (2022). TAM-UTAUT and the acceptance of remote healthcare technologies by healthcare professionals: A systematic review. Informatics in Medicine Unlocked, 32(June), 101008. https://doi.org/10.1016/j.imu.2022.101008
Saaty, T. L. (1990). How to make a decision : The Analytic Hierarchy Process. European Journal of Operational Research 48, 48, 9–26.
Saif, M. A. M., Hussin, N., Husin, M. M., Alwadain, A., & Chakraborty, A. (2022). Determinants of the Intention to Adopt Digital-Only Banks in Malaysia: The Extension of Environmental Concern. Sustainability (Switzerland), 14(17), 1–32. https://doi.org/10.3390/su141711043
Saputra, M., & Supangkat, S. H. (2018). Financial technology business model as branchless banking for people in rural areas: Case study : esia. 2017 International Conference on ICT for Smart Society, ICISS 2017, 2018-Janua, 1–6. https://doi.org/10.1109/ICTSS.2017.8288890
Setiyono, C., Shihab, M. R., & Azzahro, F. (2019). The role of initial trust on intention to use branchless banking application: Case study of jenius. Journal of Physics: Conference Series, 1193(1), 0–7. https://doi.org/10.1088/1742-6596/1193/1/012022
Sholihah, E., Nurhapsari, R., & Rohmania, A. S. (2023). The Role of Literacy and Government Support in Improving MSME Performance Through Digital Financial Services Adoption and Financial Inclusion. Peer-Reviewed Article Jurnal Keuangan Dan Perbankan, 27(3), 2443–2687. https://doi.org/10.26905/jkdp.v27i3.11147
Singh, S., Sahni, M. M., & Kovid, R. K. (2020). What drives FinTech adoption? A multi-method evaluation using an adapted technology acceptance model. Management Decision, 58(8), 1675–1697. https://doi.org/10.1108/MD-09-2019-1318
Slazus, B. J., & Bick, G. (2022). Factors that Influence FinTech Adoption in South Africa: A Study of Consumer Behaviour towards Branchless Mobile Banking. Athens Journal of Business & Economics, 8(1), 43–64. https://doi.org/10.30958/ajbe.8-1-3
Suseno, N. S., & Aulawi, H. (2024). The Digital Wallet Revolution: An Empirical Analysis of Its Effects on Mental Accounting and Financial Practices. Khazanah Sosial, 6(2), 334–341. https://doi.org/10.15575/ks.v6i2.35392
Tajul Urus, S., Othman, I. W., Syed Mustapha Nazri, S. N. F., & Kurniasari, F. (2022). Fintech Payment Services among Fresh Graduates: The UTAUT Model Perspective. International Journal of Academic Research in Accounting, Finance and Management Sciences, 12(3). https://doi.org/10.6007/ijarafms/v12-i3/15161
Tamburaka, S., & Dali, N. (2024). Enhancing Public Financial Transparency Through the Integration of Taxation , Accounting , and Social Welfare Systems. Khazanah Sosial, 6(3), 551–567. https://doi.org/DOI:10.15575/ks.v6i3.40419
Usman, H., Mulia, D., Chairy, C., & Widowati, N. (2022). Integrating trust, religiosity and image into technology acceptance model: the case of the Islamic philanthropy in Indonesia. Journal of Islamic Marketing, 13(2), 381–409. https://doi.org/10.1108/JIMA-01-2020-0020
Wahyuni, M. F. A. N., Saraswati, E., & Prastiwi, A. (2023). Digital Technology and CSR Disclosure on Firm Value Moderated by Financial Flexibility and Firm Size. Jurnal Keuangan Dan Perbankan, 27(3), 348–359. https://doi.org/10.26905/jkdp.v27i3.10656
Xie, J., Ye, L., Huang, W., & Ye, M. (2021). Understanding fintech platform adoption: Impacts of perceived value and perceived risk. Journal of Theoretical and Applied Electronic Commerce Research, 16(5), 1893–1911. https://doi.org/10.3390/jtaer16050106
Yuliaty, T., Azhmy, M. F., Marpaung, M., & Tanjung, H. (2018). Study Of Branchless Banking Business Model. Advances in Economics, Business and Management Research, (46), 460–463. https://doi.org/10.2991/ebic-17.2018.72
Zaffar, M. A., Kumar, R. L., & Zhao, K. (2019). Using agent-based modelling to investigate diffusion of mobile-based branchless banking services in a developing country. Decision Support Systems, 117(May 2018), 62–74. https://doi.org/10.1016/j.dss.2018.10.015
Zheng, J., & Li, S. (2020). What drives students’ intention to use tablet computers: An extended technology acceptance model. International Journal of Educational Research, 102. https://doi.org/10.1016/j.ijer.2020.101612
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Eti Kusmiati, Nizar Alam Hamdani, Hanifah Fauziah, Dinar Mariam Kurniati, Melly C. Resmi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).