Factors influencing the adoption of digital banking among university students in urban areas: A comparative analysis using Analytical Hierarchy Process (AHP)
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Abstract
Financial institutions are experiencing profound impacts from the rapid expansion of digitization. Raised in the era of the internet and social media, Generation Z has been exposed to these innovations extensively. The primary aim of this study is to explore the factors influencing the adoption of digital banking among university students, focusing on Generation Z in urban areas. One hundred pairwise questionnaires were distributed to university students in the Klang Valley via convenience sampling for the survey. The study evaluates five main factors - ease of use, security, online responsiveness, trust, and usefulness to be ranked through the Analytical Hierarchy Process (AHP) method. The AHP results indicate that usefulness emerged as the top priority, followed by security, in the context of digital banking adoption. Moreover, comparative analysis based on gender and education level reveals nuanced differences. Male respondents prioritize security highly, while female respondents emphasize usefulness. Similarly, those with higher education levels prioritize usefulness, whereas diploma holders prioritize more on security. By employing the AHP and conducting a comparative analysis, this study aims to address gaps in the existing literature on digital banking. Its findings are expected to aid financial institutions in enhancing their digital banking services and quality, which could potentially expand the efforts of bridging the financial inclusion gap to underserved populations in regions with low levels of access.
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