Exploring Generation Z’s Continuance Intention Toward Digital Banking in Malaysia: An Integrated Behavioral Reasoning and Expectation Confirmation Perspective

Abstract Digital banks in Malaysia have attracted millions of customers, but little is known about what keeps young users engaged after they open an account. This study aims to explore the continuance intention of Generation Z (Gen Z) digital banking users in Malaysia by integrating Digital Financial Literacy (DFL), Behavioral Reasoning Theory (BRT), and the Expectation Confirmation Model (ECM) into a single post-adoption framework. The model covers three types of explanation: reasons for and against adoption, post-adoption experience (perceived usefulness and satisfaction), and users' capability (DFL). Data were collected through an online survey of 355 university students aged 15–25 with prior digital banking experience and analysed using PLS-SEM. The results indicate that DFL has the strongest positive direct effect on continuance intention (β = 0.399), followed by satisfaction (β = 0.304) and reasons for adoption (β = 0.270), whereas perceived usefulness and reasons against adoption do not have significant direct effects. The study is an extension of BRT from adoption to post-adoption behavior and demonstrates that adoption reasons continue to be important after successful adoption, while adoption barriers are less of a factor. In practice, digital banks can enhance retention by improving the digital financial literacy of their users, ensuring consistent and satisfying service experiences, and reinforcing the everyday benefits of digital banking. Policymakers can help these efforts by incorporating digital financial literacy into the curricula of youth and higher education programs.