Determinants of intention to use Islamic digital banking among Generation Z in Malaysia

Dang, Tai Huei and Kung, Kevin Meng Cen and Koong, Tah Yeh and Lau, Peng Hui and Ong, Heng Xu (2025) Determinants of intention to use Islamic digital banking among Generation Z in Malaysia. Final Year Project, UTAR.

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Abstract

The rapid growth of financial technology has transformed the banking industry, with Islamic digital banking emerging as an important innovation that aligns with Shariah principles. However, the intention of Generation Z to adopt Islamic digital banking in Malaysia remains a critical area of study, as this generation represents the future of financial service consumers. This study investigates the determinants influencing Generation Z’s intention to use Islamic digital banking, with emphasis on five major independent variables: performance expectancy, effort expectancy, social influence, facilitating condition, and awareness. A quantitative research design was employed, and data were collected from at least 384 respondents using a convenience sampling method. Questionnaires were distributed to obtain primary data, which were then analysed using the Statistical Package for the Social Sciences (SPSS) version 30.0 through Multiple Linear Regression Model Analysis. The findings provide evidence that these variables significantly affect the behavioural intention to adopt Islamic digital banking among Generation Z in Malaysia. The study highlights the importance of enhancing innovation, improving internet coverage area, and raising awareness to increase adoption rates. These insights can guide financial institutions, policymakers, and educators in promoting Islamic digital banking, ultimately contributing to a more inclusive and sustainable financial system in Malaysia. Keywords: Behavioural intention to use Islamic digital banking, performance expectancy, effort expectancy, social influence, facilitating condition, awareness, gen Z

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