An Empirical Study on the Factors Affecting the Usage of Digital Banking in Generation Z

• Published in: Journal of System and Management Sciences
• Main Author: Kurniawan Y.; Dumais S.M.; Anwar N.
• Format: Article
• Language: English
• Published: Success Culture Press 2023
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85173928583&doi=10.33168%2fJSMS.2023.0503&partnerID=40&md5=a3f40f1f95d6507db7b00959ea24715e

The rapid growth of the Indonesian digital banking industry and the change in customer behavior due to technological development urge the importance of understanding recent customer perspectives. In addition, generation Z has the largest population in Indonesia and is commonly used as the main target market in digital banking. Therefore, this study examines factors influencing Gen Z intention and use behavior in digital banking. The sample size used in this paper is 391 respondents. The collected data was then analyzed using structural equation modelling techniques supported by SmartPLS 4.0. This research finding shows that performance expectancy, effort expectancy, and trust significantly impact attitude towards using digital banking. Moreover, social influence and habit significantly influence behavior intention. However, performance expectancy, effort expectancy, facilitating condition, and price value have insignificant influence on behavior intention. Thus, behavior intention is found to have a significant effect on the use behavior of digital banking in Gen Z. This research contributes by developing an appropriate model and providing empirical evidence related to factors affecting the use of digital banking in a developing country. Besides, utilizing the result helps the industry to focus more on factors affecting Gen Z digital banking adoption to improve the quality of digital banking, attract new customers and retain loyal customers. © 2023, Success Culture Press. All rights reserved.