Analysis of Factors Influencing Adoption to Digital Financial Services in Gen Z: An Empirical Study on Digital Bank Users in Indonesia

Abstract

Listen

Translate article

Developing digital technology is changing activities in various fields, including finance. New financial services have emerged such as digital banks, peer-to-peer lending, e-wallets, fintech, and so on. At the time this research was conducted, there was a gap between the level of awareness and ownership between one digital financial platform and another. One of them is the number of monthly active digital bank users which is still relatively small in Indonesia, where currently more customer accounts are low usage or even inactive. Digital banks are a new banking business model, without branch offices and all activities are carried out online. This research analyzes the factors that influence the adoption of digital financial services in digital banks as the key to increasing the number of customer usage of digital banks. UTAUT is the theoretical basis used in this research. This research method is quantitative, where data is obtained from an online questionnaire of 220 respondents and processed using the Structural Equation Model (SEM) analysis technique with the help of the SmartPLS 4.0 application. The findings from this research show that digital literacy has a negative effect on perceived risk which then also has a negative effect on attitude towards digital financial services. On the other hand, direct interpersonal communication between bank staff and customers also increases perceived usefulness and perceived trust. Even though digital banks do not have physical offices, communication with bank staff is still necessary. Apart from that, the influence of colleagues and the surrounding environment also influences a person's level of self-efficacy in adopting digital banking.