EXPLORING GENERATION Z'S INTENTION TO ADOPT DIGITAL ISLAMIC BANKING SERVICES: THE ROLE OF ISLAMIC FINANCIAL LITERACY
DOI:
https://doi.org/10.18623/rvd.v22.n3.3472Keywords:
Behavioral Intention in Banking, Generation Z Behavior, Islamic Banking Adoption, Islamic Financial Literacy, UTAUT ModelAbstract
This study aims to identity the determinants of Generation Z’s behavioral intention to use digital Islamic banking services in Banten, Indonesia, and explore the moderating role of Islamic financial literacy. A quantitative survey was conducted with 619 respondents from Banten. Data were analyzed using PLS-SEM to test the relationships among performance expectancy, effort expectancy, social influence, facilitating conditions, attitudes, behavioral intention, and Islamic financial literacy. The study found that performance expectancy and attitude significantly influence behavioral intention, with attitude having the strongest effect. Facilitating conditions also influenced use behavior, and Islamic financial literacy moderated the relationship between attitude and behavioral intention. However, effort expectancy did not significantly impact behavioral intention. This research contributes to the UTAUT model by integrating Islamic financial literacy as a moderator. The findings suggest that Islamic financial literacy should enhance financial literacy to increase adoption of digital banking services among Generation Z. This study was conducted in Banten Province, and therefore the findings may not be directly applicable to other regions or cultural contexts. Future studies could expand the geographical scope of the research and examine whether the same patterns hold true in other areas with different levels of Islamic financial literacy or digital banking adoption. Islamic banks can benefit from these findings by designing digital banking services that align with the values and needs of Generation Z, emphasizing the role of Islamic financial literacy in shaping their attitudes and adoption behaviors.
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