Factors Influencing Intention to Accept Digital Banks Among Generation Z in Malaysia

Objective: The objective of this study is to investigate the behavioral of Malaysians to embrace digital banking. Theoretical Framework: The research primarily relies on the Diffusion of Innovation Theory (DOI), which considers aspects such as complexity, compatibility, and relative advantage, as well as the confidence garnered from external sources. Method: The study focuses on surveying individuals from Malaysia, namely those between the ages of 18 and 64. A total of 385 replies were gathered and employed for the purpose of data analysis. This study utilizes the research methodology of Partial Least Squares Structural Equation Modelling (PLS-SEM) with the assistance of SmartPLS 4.0 software. The analysis covers several factors, such as outer loading, Cronbach's alpha, composite reliability, average variance extracted (AVE), discriminant validity, collinearity, importance of path coefficients, predictive modelling, and effect size. Results and Discussion: The research findings suggest that the desire of Malaysians to adopt digital banking is significantly influenced by compatibility, relative benefit, and trust. Nevertheless, the level of complexity has a negligible effect on their willingness to embrace digital banking. Research Implications: This report covers an analysis of the interconnections among variables and the consequences of the investigation. It tackles constraints and offers suggestions by providing a more extensive and meticulous perspective for future study and utilization by holders of digital bank licenses.