Abstract
Artificial intelligence (AI) is revolutionising the banking industry as financial institutions use technology to enhance engagement with customers. Chatbots are being used in retail banks to provide customers with instant responses, efficiently and effectively, resolving their queries through personalised and convenient services. However, there is limited research examining the attitude and trust of Generation Y and Generation Z towards chatbot usage intention and actual use. These two generational cohorts are critical market segments for retail banks because they not only represent key target groups but also influence modern banking trends, being digitally driven in their purchasing behaviour and evolving banking expectations.
To address this research gap, this study examined the intention and actual use of chatbots by Generation Y and Generation Z banking consumers in South Africa. The study was adopted a quantitative research approach and targeted Generation Y and Z (18 – 43 years) retail banking customers who had interacted with a banking chatbot. A self-administered questionnaire was used to collect data from 504 customers of the three major South African retail banks (Standard Bank, Nedbank and ABSA). The results revealed that attitudes influenced trust which in turn influenced users’ intention to interact with chatbots ultimately leading to actual usage.
The findings of the study offer valuable insights into the factors that influence the behavioural intention and actual use of chatbots amongst Generations Y and Z consumers. It is crucial for retail banks to understand these cohorts’ attitudes toward chatbot adoption as such insights help them design more effective digital engagement strategies. The study further provides clarity on the role of perceived privacy risk in shaping intention to use chatbots. This informs the banking industry on the sensitivity of these generational cohorts towards privacy risk that could influence the trust level of customers and their future intention to use chatbots as a service engagement tool.