REVISITING TECHNOLOGY ACCEPTANCE IN BANKING: AN EXTENDED UTAUT2 FRAMEWORK WITH TRUST AND REGULATORY COMPLIANCE IN KARACHI, PAKISTAN

Abstract

This study extends the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) model by integrating the constructs of trust and regulatory compliance to examine technology acceptance in Karachi’s banking sector. The research explores the key challenges encountered during the early stages of banking technology development and identifies the underlying factors influencing these challenges. Furthermore, it assesses how artificial intelligence (AI)-driven features are implemented within digital banking systems and the organizational changes required to support this transition.

A quantitative research design was employed, utilizing an online survey distributed among 150 human resource professionals from the banking industry in Karachi. Data were analyzed using SmartPLS, enabling structural esearch of relationships between the proposed variables. The findings emphasize that trust and adherence to regulatory frameworks play pivotal roles in shaping user acceptance and facilitating successful technology implementation. By recognizing environmental, organizational, and behavioral dynamics, the study provides actionable insights for developing effective strategies that enhance digital transformation and operational efficiency in the banking sector.