M-Banking Continuance Intention and Usage Frequency in Croatia: An Adapted UTAUT2 Model

This thesis examines the factors that drive Croatian bank customers` intentions to continue using and the use frequency of mobile banking (m-banking) using an adapted version of the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2). Using Structural Equation Modelling–Partial Least Squares (SEM-PLS), A quantitative study is conducted with 336 m-banking users in Croatia to analyse behavioural intention and actual usage. The findings show that Performance Expectancy, Effort Expectancy, and Habit are significant predictors of customers’ behavioural intention to use m-banking, while Habit is the only significant predictor of actual use. The study also identifies a marginal effect of the Importance of Nudging on intention, and a marginal effect of Facilitating Conditions on actual use. Other UTAUT2 extensions; Social Influence, Price Value, Hedonic Motivation, Trust, and Risk, were not significant in this context. Significant moderating effects are found for Experience (on Effort Expectancy → Intention) and Gender (on Hedonic Motivation → Intention), with several additional marginal moderating effects. The revised model explains 76.6% of the variance in intention and 29.5% of the variance in actual use. The study contributes to technology adoption and continued use research by extending UTAUT2 with Trust, Risk, and the novel construct “Importance of Nudging”, and by applying the model to m-banking in Croatia, an under-researched geographical and service context. Methodologically, it demonstrates the usefulness of SEM-PLS for testing complex adoption models and incorporates Importance Performance Map Analysis. Practical implications highlight that Croatian banks and their technology partners should prioritise: (1) enhancing utilitarian value through reliable and feature rich services, (2) ensuring ease of use through intuitive interfaces, (3) reinforcing habitual use through smooth and personalised experiences, and (4) integrating effective nudging techniques to support customer engagement and use continuance.