Factors Influencing Generation Z’s Mobile Banking Adoption in Indonesia: Integrating UTAUT and DOI Theories

The rapid growth of digital technology has changed banking behavior, especially among Generation Z. Although internet penetration in Indonesia has reached 79.5% and ‘mobile banking’ transactions have increased by 68.5%, adoption among Generation Z has not been widely studied. This study investigates the factors influencing the intention to use ‘mobile banking’ among Generation Z in Indonesia by integrating the Unified Theory of Acceptance and Use of Technology (UTAUT) with the Diffusion of Innovation (DOI) theory. Data was collected from 301 Generation Z respondents, 78.4% of whom were female, using non-probability sampling techniques and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results indicate that performance expectancy (β = 0.403, p = 0.000), effort expectancy (β = 0.216, p = 0.004), and facilitating conditions (β = 0.163, p = 0.041) significantly influence the intention to use ‘mobile banking’. Meanwhile, perceived trust, perceived security, and relative advantage did not have a significant effect. The integration of relative advantage from DOI enriches UTAUT by adding a dimension of innovative perception toward technology. These findings suggest that developers and financial institutions should focus on providing user-friendly interface designs and reliable infrastructure to enhance adoption among digital users. Further research is recommended to consider gender as a moderating variable and use more balanced sampling techniques to improve the generalizability of the results