FACTORS INFLUENCING GENERATION Z’s INTENTION TO USE ONLINE LOANS.

Abstract

Online loans have recently gained considerable popularity among the public, particularly within Generation Z, as they emerge as a convenient solution for individuals requiring funds through digital applications. This study aims to examine the influence of perceived usefulness, perceived ease of use, perceived risk, perceived structural assurance, and social influence on the intention to use online loans among Generation Z in Pekanbaru City. The research focuses on these five independent variables, which are assumed to have a significant effect on the intention to use online loans. Data were collected using questionnaires distributed via Google Forms and analyzed through Structural Equation Modelling (SEM). A total of 331 respondents participated in this study. The research is grounded on five hypotheses: perceived usefulness positively influences the intention to use online loans, perceived ease of use positively influences the intention to use online loans, perceived risk positively influences the intention to use online loans, perceived structural assurance does not positively influence the intention to use online loans, and social influence does not positively influence the intention to use online loans. The findings reveal that perceived usefulness, perceived ease of use, and perceived risk significantly and positively affect Generation Z’s intention to use online loans in Pekanbaru City. These results highlight the importance of perceived benefits, ease of use, and risk awareness for Generation Z when considering the intention to engage with online loan services.