A Multi-Group Structural Analysis of Digital Banking Adoption Determinants Across Generational Cohorts in Indonesia
Article Sidebar
-
DBA, Generational Differences, UTAUT, Baby Boomers, Generation Z
Abstract
This study investigates factors affecting Digital Banking Adoption (DBA) across generations in Indonesia, focusing on performance expectancy, effort expectancy, social influence, facilitating conditions, and trust. Employing a cross-sectional design, the study collected data through a structured questionnaire administered to 360 respondents, selected through purposive and clustering sampling, from major cities including Jakarta, Bandung, Surabaya, and others. Structural Equation Modelling (SEM) and Multi-Group Analysis were applied to test hypotheses and assess generational differences in DBA. Findings reveal that performance expectancy, facilitating conditions, and trust significantly influence DBA, with notable differences across generations: Baby Boomers prioritize facilitating conditions, Generation X emphasizes performance expectancy, and Generation Y values both performance and effort expectancy. Generation Z, despite being tech-savvy, benefits from enhanced support structures for improved banking experiences. These results highlight the importance of tailored, generation-specific strategies in digital banking, providing valuable insights for service providers aiming to enhance user experience and adoption across demographic groups.
Full text article
References
[1] Bank Indonesia, “Digital banking in indonesia,” https://www.bi.go.id, 2022, accessed: 2025-04-28.
[2] M. Azmi, M. S. Shihab, D. Rustiana, D. P. Lazirkha et al., “The effect of advertising, sales promotion, and brand image on repurchasing intention (study on shopee users),” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 3, no. 2, pp. 76–85, 2022.
[3] D. T. Subagiyo, “Characteristics of financial technology as financing alternative capitalization of medium small-medium enterprises (msme),” Fiat Justisia: Jurnal Ilmu Hukum, vol. 15, no. 2, pp. 133–158, 2021.
[4] T. S. Vu, C. T. Nguyen, and H. L. Duc, “The impact of fintech on retail banking: Empirical evidence from bank for investment and development of vietnam,” International Journal of Research and Review, vol. 11, no. 1, pp. 656–670, 2024.
[5] D. A. F. Zea and R. E. Halim, “Behavioral intention among gen z: an analysis of digital banking adaptation factors in jabodetabek,” Journal of Entrepreneurial Economic, vol. 1, no. 2, pp. 57–67, Aug. 2024.
[6] M. D. Shetty and M. K. Nikhitha, “Impact of information technology on the banking sector,” International Journal of Management, Technology and Social Sciences, pp. 634–646, 2022.
[7] M. A. Amal, N. A. Fahmi, A. M. I. Muhsin, B. R. Yustika, and U. Shabur, “Impact of financial technology firms on banking performance: Insights from indonesia,” Journal of Economics, Business and Management, vol. 2, no. 1, pp. 86–93, 2024.
[8] N. Sharma, “A digital cohort analysis of consumers’ mobile banking app experience,” International Journal of Consumer Studies, vol. 48, no. 1, p. e12989, 2024.
[9] D. Tribuana, U. Narimawati, and M. Y. Syafei, “Digital transformation and psychological welfare at mnc bank makassar branch,” Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), vol. 7, no. 2, pp. 2713–2730, 2024.
[10] A. Ali, R. Qaiser, and W. Baig, “Examination of customers intention to adopt digital banking services: Moderating role of perceived risk in banking sector of pakistan during covid-19,” Journal of Social Sciences Review, vol. 2, no. 4, pp. 27–34, 2022.
[11] U. Rahardja, Q. Aini, D. Manongga, I. Sembiring, and Y. P. A. Sanjaya, “Enhancing machine learning with low-cost pm2.5 air quality sensor calibration using image processing,” APTISI Transactions on Management, vol. 7, no. 3, pp. 201–209, 2023.
[12] N. Sharma, M. Sharma, and T. Singh, “Mobile banking app experience of generation y and z consumers,” Asia Pacific Journal of Marketing and Logistics, vol. 36, no. 8, pp. 2008–2027, 2024.
[13] J. P. G. Lacap, K. J. Sumba, R. Gatchalian, and G. R. Petil, “Mobile wallet adoption of generations x, y, and z consumers: A path modelling approach using multigroup analysis,” in Consumer and Organizational Behavior in the Age of AI. IGI Global, 2024, pp. 119–152.
[14] M. I. A. Mohsin, R. Ahmad, and W. M. Chan, “Exploring digitalization of malaysian banking and fintech companies’ services from the customer’s perspective,” International Journal of Management and Applied Research, vol. 9, no. 2, pp. 140–160, 2022.
[15] W. Setyowati, T. A. Setiyono, G. Gung, and B. Novriyanti, “Leveraging technology in accounting for entrepreneurial insight into government budgeting efficiency,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 3, pp. 251–260, 2023.
[16] A. D. Santosa, N. Taufik, F. H. E. Prabowo, and M. Rahmawati, “Continuance intention of baby boomer and x generation as new users of digital payment during covid-19 pandemic using utaut2,” Journal of Financial Services Marketing, vol. 26, no. 4, pp. 259–273, 2021.
[17] N. Nihayah and N. Purnama, “Evaluation of digital banking application adoption based on the technology acceptance model (tam),” International Journal of Science Technology & Management, vol. 5, no. 2, pp. 424–430, 2024.
[18] L. F. Rodrigues, A. Oliveira, and H. Rodrigues, “E-banking usage by gen x, y, and z generations,” 2023.
[19] V. Gupta and S. Shukla, “Consumer trust in digital banking: A qualitative study of legal and regulatory impacts,” Interdisciplinary Studies in Society, Law, and Politics, vol. 3, no. 2, pp. 18–24, 2024.
[20] S. Kosasi, C. Lukita, M. H. R. Chakim, A. Faturahman, and D. A. R. Kusumawardhani, “The influence of digital artificial intelligence technology on quality of life with a global perspective,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 3, pp. 240–250, 2023.
[21] A. Nair, A. Ger, V. Mistry, and M. Oza, “Exploring the impact of behavioural biases on digital financial product adoption: An empirical study of decision-making among indian consumers,” Journal of Informatics Education and Research, vol. 3, no. 2, 2023.
[22] E. Mogaji, “Redefining banks in the digital era: A typology of banks and their research, managerial and policy implications,” The International Journal of Bank Marketing, vol. 41, no. 7, pp. 1899–1918, 2023.
[23] S. Kunwar, “Deposit behavior towards digitalization in the banking sector,” International Journal of Scientific Research in Engineering and Management, vol. 7, no. 8, 2023.
[24] K. Koya, V. M. Consultants, and D. R. Jones, “A path of roses and financial literacy: Exploring the usability of uk’s digital banking services to improve younger adult adoption,” in 2021 3rd Asia Pacific Information Technology Conference, 2021.
[25] V. Venkatesh, “Adoption and use of ai tools: a research agenda grounded in utaut,” Annals of Operations Research, vol. 308, no. 1, pp. 641–652, 2022.
[26] S. Rumangkit, Surjandy, and A. Billman, “The effect of performance expectancy, facilitating condition, effort expectancy, and perceived easy to use on intention to using media support learning based on unified theory of acceptance and use of technology (utaut),” in E3S Web of Conferences, vol. 426, 2023. [Online]. Available: https://doi.org/10.1051/e3sconf/202342602004
[27] I. A. Supriyono, I. Sembiring, A. Setiawan, I. Setyawan, T. Wellem, I. Hizbuloh et al., “Implementation of wireless user authentication using wlc-forti framework,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 2sp, pp. 234–242, 2023.
[28] A. M. Mulungula, F. Nimubona, V. N. Stany, and L. Bienvenu, “Analysis of the sme-bank relationship in the context of digital financial services in bukavu,” Journal of Financial Risk Management, vol. 12, no. 01, pp. 95–135, 2023.
[29] G. Chinnasamy, V. S, and A. Jain, “Revolutionizing finance: A comprehensive analysis of digital banking adoption and impact,” 2024.
[30] L. Mohamad, Z. Osman, R. K. Mohamad, Z. Ismail, and M. I. M. Din, “The perceived attitude of bank customers towards the intention to use digital banking in malaysia,” International Journal of Academic Research in Business and Social Sciences, vol. 13, no. 1, 2023.
[31] M. A. Hossain, “Factors affecting the intention to use digital banking,” Finance Economics Review, vol. 5, no. 2, pp. 51–62, 2024.
[32] J. F. Hair, G. T. M. Hult, C. M. Ringle, M. Sarstedt, N. P. Danks, and S. Ray, Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook. Springer International Publishing, 2021, accessed: Oct. 26, 2024. [Online]. Available: https://link.springer.com/book/10.1007/978-3-030-80519-7
[33] K. Diantoro, D. Supriyanti, Y. P. A. Sanjaya, S. Watini et al., “Implications of distributed energy development in blockchain-based institutional environment,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 2sp, pp. 209–220, 2023.
[34] F. C. W. Suci and K. S. S. Dahlan, “The effect of security and trust on mobile banking customer satisfaction mediated by convenience factors,” Journal of Social Science (JoSS), vol. 2, no. 10, pp. 888–902, 2023.
[35] N. H. Miskan, N. L. Hussin, N. Muhamad, M. M. Esa, and N. E. M. Aziz, “The financial technology (m-banking) adoption among baby-boomers in twenty-first century,” International Journal of Academic Research in Business and Social Sciences, vol. 11, no. 8, 2021.
[36] J. Artanti, P. M. Agustini, A. Saptono, G. K. Hanum, and D. Regina, “Analysis of virtual product marketing strategies to increase customer satisfaction (case study on bukalapak partners),” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 3, no. 2, pp. 86–109, 2022.
[37] Y. Jadil, N. P. Rana, and Y. K. Dwivedi, “A meta-analysis of the utaut model in the mobile banking literature: The moderating role of sample size and culture,” Journal of Business Research, vol. 132, pp. 354–372, 2021.
[38] A. Jain, B. Behera, and K. Kochhar, “Demonstrating the role of perceived benefit in green banking adoption: a multi-group analysis,” South Asian Journal of Business Studies, 2025.
[39] A. B. Fitra, A. Suharko, F. M. Albar, D. Apriliasari et al., “Examination of customer interest in the use of the mandiri syariah mobile application at pt. bank syariah mandiri bekasi branch office,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 3, no. 2, pp. 110–125, 2022.
[40] M. Merhi, “Consumer adoption and use of mobile banking: A cross-national, multigroup empirical analysis,” Ph.D. dissertation, Brunel University London, 2021.
[41] Q. Aini, E. P. Harahap, N. P. L. Santoso, S. N. Sari, and P. A. Sunarya, “Blockchain based certificate verification system management,” APTISI Transactions on Management, vol. 7, no. 3, pp. 191–200, 2023.
[42] McKinsey & Company, “Banking in asia-pacific: 2021 survey report,” https://www.mckinsey.com, 2021, accessed: 2025-04-28.
[43] E. Indriasari, H. Prabowo, F. L. Gaol, and B. Purwandari, “Digital banking,” International Journal of E-Business Research, vol. 18, no. 1, pp. 1–20, 2022.
[44] E. Nathanael and W. Sejati, “Effective government management of flood discharge in drainage channels using hec-ras 6.3.1 application,” APTISI Transactions on Management, vol. 7, no. 3, pp. 210–220, 2023.
[45] M. A. Albugami, “Developing a hierarchical model for the drivers of digital banking – an interpretive structural modelling approach,” Zagreb International Review of Economics and Business, vol. 25, no. 2, pp. 85–96, 2022.
[46] O. A. D. Wulandari, D. Apriani et al., “Sustainable institutional entrepreneurial culture and innovation for economic growth,” APTISI Transactions on Management, vol. 7, no. 3, pp. 221–230, 2023.
[47] J. A. M. Garc´ıa, C. G. G´omez, A. T. L´opez, and M. J. Schlosser, “Applying the technology acceptance model to online self-learning: A multigroup analysis,” Journal of Innovation & Knowledge, vol. 9, no. 4, p. 100571, 2024.
[48] M. R. Anwar and L. D. Sakti, “Integrating artificial intelligence and environmental science for sustainable urban planning,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 5, no. 2, pp. 179–191, 2024.
[49] B. A. Lutfi, A. Prasetyo, Y. P. Timur, and M. Rifqi, “Exploring gender differences in determinants of bank aladin sharia adoption: A multi-group analysis approach,” Jurnal Ekonomi dan Bisnis Airlangga Volume, vol. 33, no. 1, pp. 40–52, 2023.
[50] T. Ramayah, “Factors influencing the effectiveness of information system governance in higher education institutions (heis) through a partial least squares structural equation modeling (pls-sem) approach,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 5, no. 2, pp. 100–107, 2024.
[51] OECD, “Competition market study of tunisia’s retail banking sector,” Paris, France, 2024. [Online]. Available: https://www.oecd.org/en/publications/competition-market-study-of-tunisia-s-retail-banking-sector_ab995fce-en.html
Authors
Copyright (c) 2025 Dhimas Tribuana, Umi Narimawati, M. Yani Syafei
This work is licensed under a Creative Commons Attribution 4.0 International License.
This journal permits and encourages authors to post items submitted to the journal on personal websites while providing bibliographic details that credit its publication in this journal.
Authors are permitted to post their work online in institutional/disciplinary repositories or on their own websites. Pre-print versions posted online should include a citation and link to the final published version in Journal of Librarianship and Scholarly Communication as soon as the issue is available; post-print versions (including the final publisher's PDF) should include a citation and link to the journal's website.