Mobile banking app experience of generation Y and Z consumers

Abstract

Purpose

The study investigates whether the customer experience, satisfaction and continuance intention interrelationships in mobile banking services vary across Generation (Gen) Y and Gen Z consumers.

Design/methodology/approach

The data were collected using online surveys from 224 Gen Y and 238 Gen Z mobile banking users. The study uses the partial least squares structural equation modelling (PLS-SEM) technique and an asymmetrical analytical approach through fuzzy set qualitative comparative analysis (fsQCA) to examine the effects of five experience dimensions (pragmatic, usability, affective, sensory and social) and satisfaction on continuance intention.

Findings

Whilst Gen Z values pragmatic and affective experiences more than Gen Y and assigns less importance to usability experience (Uxp), both PLS-SEM and fsQCA did not find any significant impact of sensory experience (Sxp) in any cohort. In contrast, fsQCA suggests that social experience could play a significant role for specific segments within both generations. Furthermore, PLS-SEM demonstrates a greater impact of satisfaction on continuance intention for Gen Y than for Gen Z.

Research limitations/implications

The sample consists of high/middle-income urban consumers in one country. Future research could investigate low-income and semi-urban/rural consumers and consumers living in other countries.

Practical implications

Banks must recognise the diversity within and between Gen Y and Gen Z, adopting a segmented user experience approach. Users within each generation may prioritise distinct aspects of the mobile banking app and understanding the specific differences between Gen Y and Gen Z preferences is crucial.

Social implications

Encouraging mobile banking users to engage in community-driven financial initiatives can inspire non-users, promoting digital financial inclusion.

Originality/value

To the best of the authors' knowledge, this study is the first to compare the customer experience-based psychological patterns of continued mobile banking use in Gen Y and Gen Z.