Transaction behavior model of Generation Z and millennials: The role of financial literacy, risk perception, perceived ease of use, and actual system use

Online lending has rapidly become a widespread financial solution in today’s digital era, particularly among Generation Z and Millennials, who exhibit different behaviors in adopting new technology. This study explores how financial literacy, risk perception, and ease of use influence individuals' willingness to utilize online lending platforms. For Millennials specifically, convenience is the primary driver behind their use of online loans and their intention to transact. This key finding is based on a study of 385 business owners who have accessed online loans, analyzed using the PLS-MGA method. The research further concludes that, across generations, simplicity and speed are more significant motivators for digital financial behavior than knowledge or risk concerns. Financial literacy and risk perception, by comparison, have only a minor influence. Essentially, this indicates the need for online loan providers to design smoother and more intuitive applications, while also promoting financial education to mitigate potential long-term issues. This study extends the Technology Acceptance Model by demonstrating that perceived ease of use outweighs financial literacy and risk perception in influencing system use and transaction intention, with stronger effects observed among Millennials. It guides fintech companies to enhance user-friendly designs and policymakers to promote digital financial education.