Key Drivers of Gen Z's Digital Banking Adoption in Malaysia: The Roles of Relative Advantage, Trust, and Perceived Value as a Mediator

This study explores the factors influencing Generation Z's acceptance of digital banking services in Malaysia.Given the emerging nature of digital banks in the country, the research focuses on three primary determinants: perceived relative advantage (RA), trust (TR), and perceived value (PV) of digital banking compared to traditional banking.A quantitative methodology was employed, utilizing structured questionnaires to collect data from a representative sample of Malaysian Gen Z individuals aged 18 to 26.The findings reveal a positive relationship between RA, TR, and PV, (Lu, 2021) with these factors serving as mediators in shaping Gen Z's behavioral intention to adopt (BIA) digital banking services.The study provides valuable insights for policymakers and financial institutions, emphasizing the need for effective regulations to ensure a secure digital banking environment and the importance of targeted awareness programs to foster adoption.These efforts support financial inclusion, enhance economic development, and improve consumer welfare.Overall, the research offers significant implications for advancing digital financial services in Malaysia, promoting economic growth, and enhancing financial well-being.