Digital Banking Adoption Among Indian Digital Natives: A Gender- and Location-inclusive Study

Constant technology innovation integrated with artificial intelligence in the digital era has elevated customers’ expectations from the banking services industry globally; however, the adoption is dissimilar and disproportionate across nations. This research study examines factors influencing the digital natives’ intention towards banking in India, employing the UTAUT3 framework with the impact of gender and location (rural and urban). To achieve UN Sustainable Development Goals of no poverty, gender equality and economic growth, a comprehensive, structured survey was carried out on rural and urban students in India. The Structured Equation Model was used to evaluate the relationship between these key factors, with the behavioural intention to use digital banking as a result controlled by performance efficiency, social standards, facilitating conditions, effort expectancy, habit and personal innovativeness. The findings provide an intensive distinction in the intention of a digital native to use innovative digital banking. The influence of gender on behavioural intention is significant among rural students compared to their urban counterparts. The results have significant consequences for financial institutions, compelling them to understand this local gap and adapt their strategies to seize it equally. In addition, regulatory bodies and politicians can structure the framework in such a way that it increases digital penetration to achieve sustainable development goals.