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Enhancing User Experience and Sustainability in Open Banking Using PLS-SEM

Author

Listed:
  • Tala Althinayyan

    (Management Information System Department, College of Business Administration, King Saud University, P.O. Box 28095, Riyadh 11437, Saudi Arabia)

  • Mohammed Alojail

    (Management Information System Department, College of Business Administration, King Saud University, P.O. Box 28095, Riyadh 11437, Saudi Arabia)

Abstract

A framework empowering third-party providers to access individual financial data has revolutionized the financial services landscape. Despite the user-centric nature of FinTech solutions, research on post-adoption behavior remains relatively scarce. Given the pivotal role of FinTech in the modern financial industry, understanding the factors driving sustained adoption and continued usage is crucial. This study aims to explore the key determinants influencing users’ decisions to remain engaged with Open Banking solutions. We propose a model examining the impacts of various factors on user satisfaction and their intention to continue using Open Banking. Partial least squares structural equation modeling (PLS-SEM) was employed to validate this model. Our findings reveal that user satisfaction with the usage experience is the sole predictor of continued use intention, explaining 62% of the variance in continuance use intention (R 2 = 0.62). Additionally, user satisfaction is influenced by perceived usefulness (β = 0.33, p < 0.001), trust (β = 0.24, p = 0.003), and convenience (β = 0.25, p = 0.006), accounting for 70.5% of the variance in satisfaction (R 2 = 0.705). The practical implications of this study suggest that Open Banking providers should prioritize enhancing user satisfaction by improving the perceived usefulness and convenience of their applications while fostering trust to maintain user engagement. Furthermore, our findings emphasize that convenience and trust are critical levers that Open Banking providers can utilize to ensure long-term customer loyalty and adoption, particularly in developing economies.

Suggested Citation

  • Tala Althinayyan & Mohammed Alojail, 2024. "Enhancing User Experience and Sustainability in Open Banking Using PLS-SEM," Sustainability, MDPI, vol. 16(22), pages 1-20, November.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:22:p:9656-:d:1514812
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    References listed on IDEAS

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    1. Tania Babina & Saleem Bahaj & Greg Buchak & Filippo De Marco & Angus Foulis & Will Gornall & Francesco Mazzola & Tong Yu, 2024. "Customer data access and fintech entry: early evidence from open banking," Bank of England working papers 1059, Bank of England.
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    4. Mohammed Alojail & Surbhi Bhatia Khan, 2023. "Impact of Digital Transformation toward Sustainable Development," Sustainability, MDPI, vol. 15(20), pages 1-20, October.
    5. Gorka Briones de Araluze & Natalia Cassinello Plaza, 2023. "The Relevance of Initial Trust and Social Influence in the Intention to Use Open Banking-Based Services: An Empirical Study," SAGE Open, , vol. 13(3), pages 21582440231, July.
    6. Babina, Tania & Bahaj, Saleem & Buchak, Greg & De Marco, Filippo & Foulis, Angus & Gornall, Will & Mazzola, Francesco & Yu, Tong, 2025. "Customer data access and fintech entry: Early evidence from open banking," Journal of Financial Economics, Elsevier, vol. 169(C).
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