Impact Analysis of Digital Banking Applications on Disrupting Traditional Banking Industry

In the era of emerging technologies, the banks strive to provide a variety of innovations toward digital banking transformations. Hence, digital banking is the result rapid establishment of innovative digital banking applications that attracts more customers allowing for personalized and commercialized banking transactions. Due to the emerging needs of customers and changes in business models, digital banking applications have been sought to be the solutions for some drawbacks in traditional banking operations. This paper aims at identifying and determining the impacts of digital banking application in disrupting the traditional banking industry using hypothesis testing and analysis of regression on response data collected with convenient sampling technique. The data analysis utilized 265 samples gathered in May until June 2022 with the characteristics of respondents having age above 18 years old and using at least one digital banking application. The data analysis results with proper research framework demonstrate that the digital banking application has significantly disrupted the traditional banking industry, primarily due to the perceived ease of use, habit, customer satisfaction, and behavioral intention to use digital banking applications. This research result can provide useful reference and strategy for banking industry to provision innovative solutions towards banking digitalization and automation.