COMPONENTS AFFECTING INTENTION TO USE DIGITAL BANKING AMONG GENERATION Y AND Z: A STUDY ON COMMERCIAL BANK USERS IN KURUNAGALA DISTRICT

Abstract

This study investigates the factors influencing the intention to use digital banking among Generation Y and Z commercial bank users in the Kurunegala district of Sri Lanka. With the rapid advancement of technology, digital banking has become a crucial component of the banking sector, providing customers with enhanced convenience and accessibility. Despite the numerous benefits of digital banking, its adoption among younger demographics continues to be a critical area of interest and concern for banks aiming to leverage digitalization. Grounded in the Technology Acceptance Model (TAM) and relevant literature, this research examines the effects of perceived usefulness, perceived ease of use, perceived risk, trust, and convenience on the intention to use digital banking platforms. A quantitative research approach is employed, using a structured questionnaire to collect data from Generation Y and Z commercial bank users in the Kurunegala district. The collected data arc analyzed using statistical techniques, including regression analysis, to ascertain the significance of the relationships between the variables. The results of this study offer both theoretical and practical implications for banks and policymakers. Moreover, the study delivers valuable recommendations for commercial banks to refine their digital banking strategies and services, ensuring they better cater to the needs of younger customers. This, in turn, is expected to enhance the accessibility and usage of digital banking services in Sri Lanka. The finding highlight the importance of addressing factors such as perceived risk and trust, which are critical in fostering a favorable environment for digital banking adoption among the younger population. Through these insights, banks can more effectively encourage the utilization of digital banking platforms, ultimately contributing to the broader goals of financial inclusion and digital transformation in the banking sector. The study reveals that all tested variables significantly impact the Intention to Use. Perceived Ease of Use has the strongest positive influence, followed closely by Perceived Usefulness, Trust, and Convenience, each showing strong positive relationships. Additionally, Perceived Risk also positively impacts the Intention to Use, though to a slightly lesser extent. All variables demonstrate significant positive correlations, indicating their importance in influencing the intention to use.