Article Sidebar

Factors influencing the decision to use BSI Mobile Banking among Gen Z and Millennials in Yogyakarta, Indonesia
Submitted
December 27, 2024
Accepted
December 31, 2024
Published
December 31, 2024
Download
PDF Review Reports Originality Report
Statistic
Read Counter : 209 Download : 143

Main Article Content

Abstract

Introduction
Mobile banking has become an essential aspect of modern financial services, particularly among digitally literate populations such as Gen Z and Millennials. Despite the widespread adoption of mobile banking, understanding the factors influencing its use in specific cultural and demographic contexts remains underexplored. This study investigates the adoption of Bank Syariah Indonesia's (BSI) mobile banking services among Gen Z and Millennials in Yogyakarta using the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) framework.
Objectives
The research aims to identify and analyze the key factors driving the decision to adopt mobile banking services, focusing on intrinsic motivators such as performance expectancy, effort expectancy, hedonic motivation, price value, and habit, as well as external factors like social influence and facilitating conditions.
Method
This study employed a quantitative approach, collecting data from 124 respondents through structured questionnaires. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the relationships between the UTAUT2 factors and mobile banking adoption were evaluated.
Results
The findings indicate that intrinsic factors, particularly habit, performance expectancy, and effort expectancy, significantly influence mobile banking adoption. Hedonic motivation and price value also play essential roles, whereas external factors such as social influence and facilitating conditions were found to have no significant impact.
Implications
The study underscores the importance of user-centered strategies that enhance functionality, ease of use, and emotional satisfaction. It suggests that financial institutions should focus on fostering habitual engagement and cost-effective services to drive adoption.
Originality/Novelty
This research contributes to the literature on digital financial services by offering insights into mobile banking adoption among Gen Z and Millennials in Indonesia, emphasizing the relevance of intrinsic motivators in a technologically advanced context.

Keywords

digital financial services Gen Z Millennials mobile banking adoption technology acceptance model UTAUT2 framework

Article Details

License

Copyright (c) 2024 Yasminah Nur Fitriah , Anom Garbo

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. 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 acknowledgement of the work's authorship and initial publication in this journal.
  2. 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 acknowledgement of its initial publication in this journal.
  3. 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).
How to Cite
Fitriah , Y. N. ., & Garbo, A. (2024). Factors influencing the decision to use BSI Mobile Banking among Gen Z and Millennials in Yogyakarta, Indonesia. Journal of Islamic Economics Lariba, 10(2), 1143–1168. https://doi.org/10.20885/jielariba.vol10.iss2.art26
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
Crossref
Scopus
Google Scholar
Europe PMC

References

  1. Abdurrahman, A., Gustomo, A., & Prasetio, E. A. (2024). Exploring barriers, drivers, and routines of dynamic capabilities in Indonesian digital banking transformation: A qualitative study based on the TOE framework. The Electronic Journal of Information Systems in Developing Countries, 90(6), e12329. https://doi.org/10.1002/isd2.12329

  2. Alalwan, A. A., Dwivedi, Y. K., & Rana, N. P. (2017). Factors influencing adoption of mobile banking by Jordanian bank customers: Extending UTAUT2 with trust. International Journal of Information Management, 37(3), 99–110. https://doi.org/10.1016/j.ijinfomgt.2017.01.002

  3. Alalwan, A. A., Dwivedi, Y. K., Rana, N. P., & Algharabat, R. (2018). Examining factors influencing Jordanian customers’ intentions and adoption of internet banking: Extending UTAUT2 with risk. Journal of Retailing and Consumer Services, 40, 125–138. https://doi.org/10.1016/j.jretconser.2017.08.026

  4. Anjani, W., & Mukhlis, I. (2022). Penerapan model UTAUT (the unified theory of acceptance and use of technology) terhadap minat dan perilaku penggunaan mobile banking [Penerapan model UTAUT (the unified theory of acceptance and use of technology) terhadap minat dan perilaku penggunaan mobile banking]. Jurnal Ekonomi Akuntansi Dan Manajemen, 21(1), 1–22. https://jurnal.unej.ac.id/index.php/JEAM/article/view/30570

  5. Aziz, S., & Afaq, Z. (2018). Adoption of Islamic banking in Pakistan an empirical investigation. Cogent Business & Management, 5(1), 1548050. https://doi.org/10.1080/23311975.2018.1548050

  6. Baabdullah, A. M., Alalwan, A. A., Rana, N. P., Kizgin, H., & Patil, P. (2019). Consumer use of mobile banking (M-Banking) in Saudi Arabia: Towards an integrated model. International Journal of Information Management, 44, 38–52. https://doi.org/10.1016/j.ijinfomgt.2018.09.002

  7. Banna, H., Hassan, M. K., Ahmad, R., & Alam, M. R. (2021). Islamic banking stability amidst the COVID-19 pandemic: The role of digital financial inclusion. International Journal of Islamic and Middle Eastern Finance and Management, 15(2), 310–330. https://doi.org/10.1108/IMEFM-08-2020-0389

  8. Beik, I. S., Arsyianti, L. D., & Permatasari, N. (2023). Analysis on the determinant of millennials’ zakat payment through digital platform in Indonesia: A multinomial logistic approach. Journal of Islamic Marketing, 15(2), 541–572. https://doi.org/10.1108/JIMA-09-2021-0313

  9. Berakon, I., Aji, H. M., & Hafizi, M. R. (2021). Impact of digital Sharia banking systems on cash-waqf among Indonesian Muslim youth. Journal of Islamic Marketing, 13(7), 1551–1573. https://doi.org/10.1108/JIMA-11-2020-0337

  10. Bhatnagr, P., Rajesh, A., & Misra, R. (2024). A study on driving factors for enhancing financial performance and customer-centricity through digital banking. International Journal of Quality and Service Sciences, 16(2), 218–250. https://doi.org/10.1108/IJQSS-09-2023-0141

  11. Bilgah, B., & Frimayasa, A. (2024). Analisis pendekatan model UTAUT 2 terhadap penerimaan penggunaan e-banking Livin pada Bank Mandiri (Studi kasus nasabah Bank Mandiri Jabodetabek) [Analysis of the UTAUT 2 model approach to the acceptance of the use of Livin e-banking at Bank Mandiri (Case study of Bank Mandiri Jabodetabek customers)]. Innovative: Journal of Social Science Research, 4(4), 8492–8503. https://doi.org/10.31004/innovative.v4i4.13035

  12. Bolton, R. N., McColl-Kennedy, J. R., Cheung, L., Gallan, A., Orsingher, C., Witell, L., & Zaki, M. (2018). Customer experience challenges: Bringing together digital, physical and social realms. Journal of Service Management, 29(5), 776–808. https://doi.org/10.1108/JOSM-04-2018-0113

  13. Chaidir, T., Ro’is, I., & Akhmad Jufri. (2021). Penggunaan aplikasi mobile banking pada bank konvensional dan bank syariah di Nusa Tenggara Barat: Pembuktian Model Unified Theory of Acceptance and Use of Technology (UTAUT) [The use of mobile banking applications in conventional banks and Islamic banks in West Nusa Tenggara: Proving the Unified Theory of Acceptance and Use of Technology (UTAUT) Model]. Elastisitas - Jurnal Ekonomi Pembangunan, 3(1), 61–76. https://doi.org/10.29303/e-jep.v3i1.37

  14. Donner, J., & Tellez, C. A. (2008). Mobile banking and economic development: Linking adoption, impact, and use. Asian Journal of Communication, 18(4), 318–332. https://doi.org/10.1080/01292980802344190

  15. El-Masri, M., & Tarhini, A. (2017). Factors affecting the adoption of e-learning systems in Qatar and USA: Extending the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2). Educational Technology Research and Development, 65(3), 743–763. https://doi.org/10.1007/s11423-016-9508-8

  16. Evan, I., Winarno, W. W., & Putro, H. P. (2021). Evaluasi tingkat penerimaan e-money di kalangan mahasiswa Yogyakarta menggunakan modifikasi UTAUT2 [Evaluation of the level of acceptance of e-money among Yogyakarta students using modified UTAUT2]. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 10(1), 11–22. https://doi.org/10.24843/EEB.2021.v10.i01.p02

  17. Fenu, G., & Pau, P. L. (2015). An analysis of features and tendencies in mobile banking apps. Procedia Computer Science, 56, 26–33. https://doi.org/10.1016/j.procs.2015.07.177

  18. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312

  19. Gąsiorkiewicz, L., Monkiewicz, J., & Monkiewicz, M. (2020). Technology-driven innovations in financial services: The rise of alternative finance. Foundations of Management, 12(1), 137–150. https://doi.org/10.2478/fman-2020-0011

  20. Hinduan, Z. R., Anggraeni, A., & Agia, M. I. (2020). Generation Z in Indonesia: The self-driven digital. In E. Gentina & E. Parry (Eds.), The new Generation Z in Asia: Dynamics, differences, digitalisation (pp. 121–134). Emerald Publishing Limited. https://doi.org/10.1108/978-1-80043-220-820201012

  21. Hofstede, G. (1984). Cultural dimensions in management and planning. Asia Pacific Journal of Management, 1(2), 81–99. https://doi.org/10.1007/BF01733682

  22. Kim, G., Shin, B., & Lee, H. G. (2009). Understanding dynamics between initial trust and usage intentions of mobile banking. Information Systems Journal, 19(3), 283–311. https://doi.org/10.1111/j.1365-2575.2007.00269.x

  23. Lestari, D. (2019). Measuring e-commerce adoption behaviour among gen-Z in Jakarta, Indonesia. Economic Analysis and Policy, 64, 103–115. https://doi.org/10.1016/j.eap.2019.08.004

  24. Mahdzan, N. S., Zainudin, R., & Au, S. F. (2017). The adoption of Islamic banking services in Malaysia. Journal of Islamic Marketing, 8(3), 496–512. https://doi.org/10.1108/JIMA-08-2015-0064

  25. Mbama, C. I., Ezepue, P., Alboul, L., & Beer, M. (2018). Digital banking, customer experience and financial performance: UK bank managers’ perceptions. Journal of Research in Interactive Marketing, 12(4), 432–451. https://doi.org/10.1108/JRIM-01-2018-0026

  26. Mogaji, E. (2023). Redefining banks in the digital era: A typology of banks and their research, managerial and policy implications. International Journal of Bank Marketing, 41(7), 1899–1918. https://doi.org/10.1108/IJBM-06-2023-0333

  27. Morosan, C., & DeFranco, A. (2016). It’s about time: Revisiting UTAUT2 to examine consumers’ intentions to use NFC mobile payments in hotels. International Journal of Hospitality Management, 53, 17–29. https://doi.org/10.1016/j.ijhm.2015.11.003

  28. Mufarih, M., Jayadi, R., & Sugandi, Y. (2020). Factors influencing customers to use digital banking application in Yogyakarta, Indonesia. The Journal of Asian Finance, Economics and Business, 7(10), 897–907. https://doi.org/10.13106/jafeb.2020.vol7.no10.897

  29. Nugraha, D. P., Setiawan, B., Nathan, R. J., & Fekete-Farkas, M. (2022). Fintech adoption drivers for innovation for SMEs in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 208. https://doi.org/10.3390/joitmc8040208

  30. Nugroho, A. P., Zulni, D. A., & Andriansyah, Y. (2023). Exploring the adoption of digital wallets among Islamic millennials in Yogyakarta, Indonesia using an extended UTAUT model: The role of Islamic consumption ethics. Journal of Theoretical and Applied Information Technology, 101(14), 5528–5540. https://www.researchgate.net/profile/Yuli-Andriansyah/publication/372823708_Exploring_the_Adoption_of_Digital_Wallets_among_Islamic_Millennials_in_Yogyakarta_Indonesia_Using_an_Extended_UTAUT_Model_The_Role_of_Islamic_Consumption_Ethics/links/64c94e4b862f8d299988c14a/Exploring-the-Adoption-of-Digital-Wallets-among-Islamic-Millennials-in-Yogyakarta-Indonesia-Using-an-Extended-UTAUT-Model-The-Role-of-Islamic-Consumption-Ethics.pdf

  31. Oktavianita, A. D., & Siregar, M. U. (2021). Pengaruh faktor model UTAUT (Unified Theory of Acceptance and Use of Technology) terhadap niat generasi Milenial dalam menggunakan mobile banking di Indonesia [The influence of UTAUT (Unified Theory of Acceptance and Use of Technology) model factors on Millennials’ intention to use mobile banking in Indonesia]. Jurnal Ekonomi Dan Bisnis (EK&BI), 4(2), 649–660. https://doi.org/10.37600/ekbi.v4i2.414

  32. Parise, S., Guinan, P. J., & Kafka, R. (2016). Solving the crisis of immediacy: How digital technology can transform the customer experience. Business Horizons, 59(4), 411–420. https://doi.org/10.1016/j.bushor.2016.03.004

  33. Pemerintah Kota Yogyakarta. (2022, March 7). Pemkot Yogya peringkat satu Indeks Elektronifikasi Transaksi Pemerintah Daerah [Yogya City Government ranks first in Local Government Transaction Electronification Index] [HTML]. Portal Berita Pemerintah Kota Yogyakarta. https://warta.jogjakota.go.id/detail/index/19747

  34. Pohan, R. N. A., Rokan, M. K., & Syarvina, W. (2024). Faktor-faktor yang mempengaruhi penggunaan mobile banking pada layanan BSI Mobile dengan menggunakan Model Unified Theory of Acceptance and Use of Technology (UTAUT) [Factors that influence the use of mobile banking on BSI Mobile services using the Unified Theory of Acceptance and Use of Technology (UTAUT) Model]. Jurnal Manajemen Akuntansi (JUMSI), 4(3), 732–740. https://doi.org/10.36987/jumsi.v4i3.4025

  35. Prawira, S. S., & Ridanasti, E. (2024). An empirical analysis of factors affecting the intention of using digital wallet in Yogyakarta. Selekta Manajemen: Jurnal Mahasiswa Bisnis & Manajemen, 2(6), 234–246. https://journal.uii.ac.id/selma/article/view/35629

  36. Rachbini, W., Soeharso, S. Y., Wulandjani, H., Fathoni, M. A., & Rahmawati, E. (2024). From Boomers to Millennials: Unraveling the complexities of online shopping behavior in Indonesia. Innovative Marketing, 20(3), 144–157. https://doi.org/10.21511/im.20(3).2024.12

  37. Retno, I. E., Michael, C., Henilia, Y., Titik, A., & Regina Jansen, A. (2023). Digital bank channel distribution: Predictors of usage attitudes in Jakarta’s Gen Z. Journal of Distribution Science, 21(2), 21–34. https://doi.org/10.15722/jds.21.02.202302.21

  38. Sebayang, T. E., Hakim, D. B., Bakhtiar, T., & Indrawan, D. (2024a). The investigation of preference attributes of Indonesian mobile banking users to develop a strategy for mobile banking adoption. Journal of Risk and Financial Management, 17(3), 109. https://doi.org/10.3390/jrfm17030109

  39. Sebayang, T. E., Hakim, D. B., Bakhtiar, T., & Indrawan, D. (2024b). What accelerates the choice of mobile banking for digital banks in Indonesia? Journal of Risk and Financial Management, 17(1), 6. https://doi.org/10.3390/jrfm17010006

  40. Shaikh, A. A., & Karjaluoto, H. (2015). Mobile banking adoption: A literature review. Telematics and Informatics, 32(1), 129–142. https://doi.org/10.1016/j.tele.2014.05.003

  41. Simanjuntak, M. H. (2024, June 20). BI: Transaksi perbankan digital meningkat capai Rp5.570,49 triliun [BI: Digital banking transactions increase to Rp5,570.49 trillion] [HTML]. Antara News. https://www.antaranews.com/berita/4160283/bi-transaksi-perbankan-digital-meningkat-capai-rp557049-triliun

  42. Susilowati, A., Rianto, B., Wijaya, N., & Sanny, L. (2021). Effects of UTAUT 2 model on the use of BCA Mobile Banking in Indonesia. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(3), 5378–5387. https://doi.org/10.17762/turcomat.v12i3.2183

  43. Tam, C., & Oliveira, T. (2017). Literature review of mobile banking and individual performance. International Journal of Bank Marketing, 35(7), 1044–1067. https://doi.org/10.1108/IJBM-09-2015-0143

  44. Upadhyay, P., & Jahanyan, S. (2016). Analyzing user perspective on the factors affecting use intention of mobile based transfer payment. Internet Research, 26(1), 38–56. https://doi.org/10.1108/IntR-05-2014-0143

  45. Venkatesh, V., Thong, J. Y. L., & Xu, X. (2012). Consumer acceptance and use of information technology: Extending the Unified Theory of Acceptance and Use of Technology. MIS Quarterly, 36(1), 157. https://doi.org/10.2307/41410412

  46. Vishnuvardhan, B., Manjula, B., & Lakshman Naik, R. (2020). A study of digital banking: Security issues and challenges. In K. S. Raju, A. Govardhan, B. P. Rani, R. Sridevi, & M. R. Murty (Eds.), Proceedings of the Third International Conference on Computational Intelligence and Informatics (pp. 163–185). Springer. https://doi.org/10.1007/978-981-15-1480-7_14

  47. Weber, R. H., & Darbellay, A. (2010). Legal issues in mobile banking. Journal of Banking Regulation, 11(2), 129–145. https://doi.org/10.1057/jbr.2009.16

  48. Windasari, N. A., Kusumawati, N., Larasati, N., & Amelia, R. P. (2022). Digital-only banking experience: Insights from gen Y and gen Z. Journal of Innovation & Knowledge, 7(2), 100170. https://doi.org/10.1016/j.jik.2022.100170

  49. Zuhriyah, Q. A. (2022). The behavior of using digital money (e-money) in the Millennial Generation based on Islamic perspective. Open Access Indonesia Journal of Social Sciences, 5(5), 829–835. https://doi.org/10.37275/oaijss.v5i5.133