Determinants of Generation Z’s Intention to Use Islamic Digital Banking: Extending the UTAUT Model with Islamic Lifestyle

Abstract

This study aims to examine the factors influencing Generation Z’s intention to use digital banking by applying the Unified Theory of Acceptance and Use of Technology (UTAUT) model and investigating the moderating role of Islamic lifestyle. The study employs a quantitative approach using Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS 4.0. The findings reveal that habit and trialability have a positive and significant effect on the intention to use digital banking, while hedonic motivation and price value do not show significant effects. In addition, Islamic lifestyle is not found to moderate the relationship between habit and intention to use digital banking. These results indicate that familiarity with technology and the opportunity to directly experience digital banking services are the key drivers of Islamic digital banking adoption among Generation Z. This study contributes to the digital banking and Islamic finance literature by extending the UTAUT framework through the inclusion of Islamic lifestyle and by providing empirical evidence on the behavioral determinants of digital banking adoption among Generation Z in the context of Islamic banking.