The Impact of Perceived Risk and Technology Acceptance Model on Gen Z’s Adoption of Digital Banking

Abstract

This study examines the effect of perceived usefulness, perceived ease of use, and perceived risk on Gen Z’s attitude toward using digital banking. Furthermore, this study examines whether the attitude toward digital banking influences their intention to use it. This research applied a quantitative approach, with the sample study being Gen Z between the ages of 18 and 25. With a total sample size of 148 respondents, an online questionnaire was distributed through Google Forms to gather the data. Structural Equation Modelling (SEM) with SmartPLS 4.0 software is the method of data analysis employed. It was found that perceived usefulness and perceived risk have a significant effect on attitude toward digital banking, whereas perceived ease of use does not have a significant effect. Perceived ease of use is positively significant towards perceived usefulness. Lastly, attitude toward the use of digital banking has a positive effect on the intention to use digital banking. Novelty/value- One characteristic of Generation Z is their familiarity with technology. Gen Z is the Generation that will continue to utilize technology; thus, it is crucial to understand their decisions about the usage of digital banking. This study sheds light on previously understudied aspects affecting attitudes and intentions toward digital banking in Indonesia.