Exploring digital banking consumer behaviour in the retail banking sector: the United Arab Emirates context

Abstract

This thesis investigates consumer behaviour and beliefs surrounding digital banking within the retail banking sector in the United Arab Emirates (UAE). The study draws upon literature across multiple domains, including global banking, the Gulf region banking industry, and behavioural adoption theories, particularly the Theory of Planned Behaviour (TPB). While the UAE stands as a regional leader in digital transformation and innovation adoption, a gap exists in understanding consumer behaviour specific to digital banking in this context. The robust and evolving nature of the UAE banking system presents a unique opportunity to explore the factors influencing digital banking usage. This research addresses this gap by contributing to the growing body of knowledge on consumer behaviour in emerging markets, offering insights into evolving trends, preferences, and challenges within the UAE banking landscape.

The empirical focus of the study investigates several critical issues related to the use and diffusion of digital banking in the UAE. First, it examines the role of demographic factors in influencing consumer behaviour, particularly focusing on age, gender, and banking preferences (conventional versus Islamic). Second, it explores consumer attitudes and motivations, guided by the TPB framework, to uncover key drivers of digital banking use. Third, it evaluates concerns related to trust and security, and the significance of convenience and accessibility, which are essential in influencing consumer decisions. Lastly, it investigates the future of digital banking within the UAE, considering the interplay of innovation and consumer intentions and situating these findings within the broader supply-demand dynamics of the industry. The interplay of supply-side advancements (technology innovation and service accessibility) and demand-side expectations (trust, convenience, and literacy) is highlighted as a critical factor in shaping the future trajectory of digital banking in the UAE.

A mixed-methods methodology was employed to achieve the study's objectives, integrating qualitative and quantitative approaches. Qualitative insights were gathered through focus group discussions, designed to uncover critical themes related to digital banking use. These discussions, guided by the TPB framework, illustrated the impact of factors such as social norms, trust, security, and perceived convenience on consumer decision-making. Participants frequently voiced concerns regarding trust issues, highlighting apprehensions about the overall reliability of online systems. These findings provided a strong foundation for establishing the focus of the main research stage, warranting further exploration. Quantitative data involved a structured survey informed by TPB constructs. This approach facilitated an in-depth examination of the relationships among behavioural, normative, and control beliefs, as well as variables such as trust, security, and digital literacy. The results revealed that trust and perceived behavioural control were the strongest predictors of digital banking intention, while lack of digital literacy emerged as one of the barriers. Normative beliefs, particularly family and peer influence, also played a key role.

The conclusions of this study extend the TPB framework and incorporate elements of Diffusion of Innovation Theory (DIT), offering valuable insights for the UAE banking sector and other service industries undergoing digitalisation in the region. The findings underscore the need for financial institutions and regulatory bodies to address consumer beliefs and barriers while fostering digital banking use. This requires balancing supply-side advancements with demand-side expectations to ensure effective innovation diffusion. The study also has broader implications for emerging markets facing similar challenges. Future research could examine how religiosity influences digital banking use and Islamic banking behaviour in the region, helping to refine the conceptual framework within its cultural and regulatory context.

Thesis is embargoed until 31st July 2027

Date of Award	Jul 2025
Original language	English
Supervisor	Christopher McLaughlin (Supervisor), Mark Durkin (Supervisor) & Laura Bradley-McCauley (Supervisor)