Consumer Adoption of Open Banking: An Extended UTAUT Model Incorporating Trust, Risk, And Financial Literacy

Open banking, a rising trend in the financial sector, allows third-party service providers to access consumer financial data through secure APIs, improving consumer experience and financial inclusion. This study investigates factors influencing consumer adoption of open banking by extending the Unified Theory of Acceptance and Use of Technology (UTAUT) model. Key determinants such as performance expectancy, effort expectancy, social influence, and perceived risk are explored through a survey of 439 respondents. The study reveals that performance and effort expectancy positively affect adoption intention, while perceived risk hinders it. The role of financial literacy and initial trust is also discussed, offering insights for banks and FinTech companies to tailor services and build consumer trust.