Gen Z Business Students’ Intention to Adopt Neobanks: An Extended UTAUT Approach
DOI:
https://doi.org/10.31154/cogito.v11i1.843.101-111Keywords:
Neobanks, Gen Z, UTAUT, Perceived of Credibility, Intention to AdoptAbstract
As neobanks emerged as one of exciting services in banking industry in recent years and trying to penetrate young customers, this study attempts to examine whether variables in UTAUT model (performance expectancy, effort expectancy, and social influence) and additional variables such as features, curiosity, and rewards affect intention to adopt neobanks with perceived credibility as mediating variable. A quantitative survey was conducted on 359 Gen Z business students at a private university in North Sulawesi. The data collected were then analyzed using a structural equation model (SEM). The results show that only curiosity and perceived credibility have a positive effect on intention to adopt, while performance expectancy and social influence impact on perceived credibility. In addition, perceived credibility mediates the effects of performance expectancy and social influence on intention to adopt. Some recommendations are given in order to increase the Gen Z intention in adopting neobanks while at the same time improving the credibility of neobanks’ applications.References
D. Proctor. “What is digital banking?”. Temenos. Accessed: Feb. 20, 2022. [Online]. Available: https://www.temenos.com/news/2019/12/19/what-is-digital-banking/.
R. M. Shettar, “Neo-banks are changing the face of banking,” IOSR Journal of Economics and Finance, vol. 10, no. 5, pp. 1-5, 2019, doi: 10.9790/5933-1005020105.
“Peraturan Otoritas Jasa Keuangan Republik Indonesia Nomor 12/POJK.03/2021”. Otoritas Jasa Keuangan. Accessed: Feb. 10, 2022. [Online]. Available: https://www.ojk.go.id/id/regulasi/Pages/Bank-Umum.aspx.
Y. Pusparisa. “Mana yang paling favorit, e-money atau e-wallet?”. Katadata. Accessed: Jan. 21, 2022. [Online]. Available: https://katadata.co.id/muhammadridhoi/analisisdata/5f97c41b49705/mana-yang-paling-favorit-e-money-atau-e-wallet.
G. G. Hopkinson, D. Klarova, R. Turcan (Ed.), and V. Gulieva (Ed.). “How neobanks’ business models challenge traditional banks”. Aalborg Universitet. Accessed: Feb. 13, 2022.[Online]. Available:https://www.ibc.aau.dk/collaboration/Young+Graduate+News/.
“The power of Gen Z influence: How the pivotal generation is affecting market spend”. Barkley, Kansas City, USA. Accessed: Feb. 20, 2022. [Online]. Available: http://www.millennialmarketing.com/wp-content/uploads/2018/01/Barkley_WP_GenZMarketSpend_Final.pdf.
S. Davidson. “For payments, generation z is ‘generation e-wallet’”. American Banker. Accessed: Mar. 15, 2023. [Online]. Available: https://www.americanbanker.com/payments/opinion/for-payments-generation-z-is-generation-e-wallet.
H. El-Gohary, A. Thayaseelan, S. Babatunde, and S. El-Gohary, “An exploratory study on the effect of artificial intelligence-enabled technology on customer experiences in the banking sector,” Journal of Technological Advancements (JTA), vol. 1, no. 1, pp. 1-17, 2021. [Online]. Available: https://www.igi-global.com/article/an-exploratory-study-on-the-effect-of-artificial-intelligence-enabled-technology-on-customer-experiences-in-the-banking-sector/276502.
C. G. Daka and J. Phiri, “Factors driving the adoption of e-banking services based on the UTAUT model,” International Journal of Business and Management, vol. 14, no. 6, pp. 43-52, 2019, doi:10.5539/ijbm.v14n6p43.
G. Larisa, N. Tetiana, and V. Viktoriia, “Neobanks operations and security features,” in Proc. 2019 IEEE International Scientific-Practical Conference Problems of Infocommunications, Science and Technology (PIC S&T), IEEE, 2019, pp. 839-842, doi: https://doi.org/10.1109/PICST47496.2019.9061268
S. Ananda, S. Devesh, and A. M. Al Lawati, “What factors drive the adoption of digital banking? An empirical study from the perspective of Omani retail banking,” Journal of Financial Services Marketing, vol. 25, no. 1, pp. 14-24, 2020, doi: https://doi.org/10.1057/s41264-020-00072-y.
O. T. Nguyen, “Factors affecting the intention to use digital banking in Vietnam,” The Journal of Asian Finance, Economics and Business, vol. 7, no. 3, pp. 303-310, 2020, doi: 10.13106/jafeb.2020.vol7.no3.303.
M. Mufarih, R. Jayadi, and Y. Sugandi, “Factors influencing customers to use digital banking application in Yogyakarta, Indonesia,” The Journal of Asian Finance, Economics, and Business, vol. 7, no. 10, pp. 897-907, 2020, doi: https://doi.org/10.13106/jafeb.2020.vol7.no10.897.
S. J. Kaur, L. Ali, M. K. Hassan, and M. Al-Emran, “Adoption of digital banking channels in an emerging economy: exploring the role of in-branch efforts,” Journal of Financial Services Marketing, vol. 26, no. 2, pp. 107-121, 2021, doi: 10.1057/s41264-020-00082-w.
R. Laycock. “Penggunaan perbankan digital 2021”. Finder. Accessed: Feb. 10, 2022. [Online]. Available: https://www.finder.com/id/neo-bank.
B. Supriyanto. “Survei RB Consulting: Tingkat penetrasi digital banking milenial baru 30 persen”. Bisnis.com. Accessed: Feb 15, 2022. [Online]. Available: https://finansial.bisnis.com/read/20210414/90/1380972/survei-rb-consulting-tingkat-penetrasi-digital-banking-milenial-baru-30-persen.
Y. Hu. (2021). “What we shared in the "Rise of digital banks in Indonesia" exclusive briefing”. Momentum Works. Accessed: Feb 10, 2022. [Online]. Available: https://thelowdown.momentum.asia/what-we-shared-in-the-rise-of-digital-banks-in-indonesia-exclusive-briefing/.
D. Angelia. “Menelisik perkembangan bank digital di Indonesia”. Good News From Indonesia. Accessed: Feb 15, 2022. [Online]. Available: https://www.goodnewsfromindonesia.id/2022/01/24/menelisik-perkembangan-bank-digital-yang-kian-prospektif-di-indonesia.
L. M. Firmansyah. “Infografik: Inilah 14 bank digital Indonesia, versi OJK”. Lokadata.id. Accessed: Feb 15, 2022. [Online]. Available: https://lokadata.id/artikel/infografik-inilah-14-bank-digital-indonesia-versi-ojk.
R. Anggraeni. “Aturan pendirian bank digital mulai berlaku. Simak syaratnya”. Bisnis.com. Accessed: Feb 20, 2022. [Online]. Available: https://finansial.bisnis.com/read/20211102/90/1460930/aturan-pendirian-bank-digital-mulai-berlaku-simak-syaratnya.
D. Stillman and J. Stillman, “Generasi Z. Memahami karakter generasi baru yang akan mengubah dunia kerja,” Gramedia Pustaka Utama, Jakarta, 2019.
“Evolusi industri dompet digital: Strategi menang tanpa bakar uang”. IPSOS Indonesia. Accessed: Mar. 27, 2022. [Online]. Available: https://www.ipsos.com/sites/default/files/ct/news/documents/2020-02/ipsos_media_conferennce_-_e-wallet_-_id_0.pdf.
A. C. Aseng, “Factors influencing Generation Z intention in using FinTech digital payment services,” CogITo Smart Journal, vol. 6, no. 2, pp. 155–166, 2020, doi: https://doi.org/10.31154/cogito.v6i2.260.155-166.
N. A. Windasari, N. Kusumawati, N. Larasati, and R. P. Amelia, “Digital-only banking experience: Insights from gen Y and gen Z,” Journal of Innovation & Knowledge, vol. 7, no. 2, 2022, doi: https://doi.org/10.1016/j.jik.2022.100170.
V. Venkatesh, M. G. Morris, G. B. Davis, and F. D. Davis, “User acceptance of information technology: Toward a unified view,” MIS quarterly, vol. 27, no. 3, pp. 425-478, 2003, doi: https://doi.org/10.2307/30036540.
S. Rahi and M. Abd. Ghani, “Investigating the role of UTAUT and e-service quality in internet banking adoption setting,” The TQM Journal, vol. 31, no. 3, pp. 491-506, 2019, doi: https://doi.org/10.1108/TQM-02-2018-0018.
K. P. Gupta, R. Manrai, and U. Goel, “Factors influencing adoption of payments banks by Indian customers: extending UTAUT with perceived credibility,” Journal of Asia Business Studies, vol. 13, no. 2, pp. 173-195, 2019, doi: https://doi.org/10.1108/JABS-07-2017-0111.
J. F. Hair Jr, L. M. Matthews, R. L. Matthews, and M. Sarstedt, “PLS-SEM or CB-SEM: updated guidelines on which method to use,” International Journal of Multivariate Data Analysis, vol. 1, no. 2, pp. 107-123, 2017, doi: https://doi.org/10.1504/IJMDA.2017.087624.
L. J. Cronbach, “Essentials of Psychological Testing,” 3rd ed., Harper & Row, New York, 1970.
C. Fornell and D. F. Larcker, “Evaluating structural equation models with unobservable variables and measurement error,” Journal of Marketing Research, vol. 18, no. 1, pp. 39-50, 1981, doi: https://doi.org/10.1177/002224378101800104.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 CogITo Smart Journal
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
