Cues to Action and Habit as Key Drivers of Digital Banking App Adoption Across Age Cohorts in Indonesia

Digital technology has many implications for development in various fields, including finance.Banks and financial industries continue to compete and deliver new banking experiences through digital-only banks.Although the development of digital-only banks shows a growing trend, digital-only banks face major challenges, especially facing traditional banks that also provide digital services.Recent research shows that nearly half of the prospective customers are not interested in using digital-only bank services.Understanding that this study is a useful reference, digital-only banks can use this research to enhance their understanding and knowledge of attracting more users from different generations, which could positively impact digital banking.This study analyzed factors influencing intentions to adopt digital banking apps in Indonesia across generational cohorts.An online survey was conducted with 112 respondents aged 17 and older in multiple Indonesian cities.Using UTAUT2, cues to action, and habit as key constructs, WarpPLS 8.0 was employed to analyze the Structural Equation Model (SEM).The results showed cues to action and habit significantly influenced adoption intentions, while effort expectancy, social influence, and firm reputation had no effect.Cues to action had the most substantial impact.Moderation analysis further revealed that habit was more salient for younger digital native generations.This study is among the first to examine the cues to action on intentions to use in a digital-only banking context, and the findings imply that informative, promotional strategies and leveraging online shopping habits can effectively boost digital banking acceptance.