Gen Z Business Students’ Intention to Adopt Neobanks: An Extended UTAUT Approach

As neobanks emerged as one of exciting services in banking industry in recent years and trying to penetrate young customers, this study attempts to examine whether variables in UTAUT model (performance expectancy, effort expectancy, and social influence) and additional variables such as features, curiosity, and rewards affect intention to adopt neobanks with perceived credibility as mediating variable. A quantitative survey was conducted on 359 Gen Z business students at a private university in North Sulawesi. The data collected were then analyzed using a structural equation model (SEM). The results show that only curiosity and perceived credibility have a positive effect on intention to adopt, while performance expectancy and social influence impact on perceived credibility. In addition, perceived credibility mediates the effects of performance expectancy and social influence on intention to adopt. Some recommendations are given in order to increase the Gen Z intention in adopting neobanks while at the same time improving the credibility of neobanks’ applications.