Enforcement of consumer rights protection laws and intention to reuse digital financial services among Generation Z youth: Empirical evidence from Vietnamese commercial banks

Abstract

Digital financial services are crucial in boosting the competitive edge of businesses and economies in numerous developing nations. This study aims to explore the factors that affect consumers’ perceptions of the implementation of consumer protection laws and their willingness to continue using digital financial services. Data were collected through interviews with 689 Gen Z consumers (born after 1996) who have used digital financial services in Vietnamese commercial banks. The results of the partial least square – structural equation modeling indicate that six factors influence attitudes toward the enforcement of consumer protection laws, in descending order: perceived benefits, understanding of legal regulations, perceived asymmetry, perceived risk, understanding of technology and digital finance, and understanding of dispute resolution. Additionally, attitudes toward law enforcement, as well as understanding of technology and digital finance, positively impact consumers’ intention to reuse digital financial services, while perceived risk has the opposite effect. Furthermore, all six independent factors impact the intention to reuse digital financial services through the mediating role of attitudes toward the enforcement of consumer protection laws. The study’s findings also lay the groundwork for policy recommendations for legislative authorities and strategic guidance for service providers and consumers in emerging markets in the future. AcknowledgmentThis study is the result of collaboration between researchers from the University of Law, Hue University, and School of Business and Economics, Duy Tan University. The authors would like to thank both institutions for their support and facilitation in the publication of this research. This study was conducted under project code DHH2024-12-85, Decision No. 298/QĐ-ĐHH dated March 27, 2024, issued by the Director of Hue University.