Digital banking adoption in Indonesia has grown rapidly, especially among Generation Z and Millennials. This research examines factors influencing the
adoption of digital banking by analyzing the effects of technology-related factors, individual factors, and social-environmental elements affecting both actual use and
behavioral intention, while also assessing generational differences between Millennials and Generation Z. A quantitative explanatory method was used to
gather information from 232 Indonesian digital banking users and examined with PLS-SEM, or partial least squares structural equation modeling and Multi-Group
Analysis (MGA). The results indicate that technology-related, individual, and social-environmental factors significantly affect the intention of behavior to use
digital banking services. Furthermore, individual factors, social-environmental factors, and behavioral intention significantly affect actual use, with individual
factors demonstrating the strongest influence on usage behavior. The MGA results reveal no significant generational difference in the effect of technology-related
factors on behavioral intention. Nonetheless, notable distinctions are noticed for individual and social-environmental factors, with stronger effects among
Millennials than Generation Z. Overall, the results demonstrate that digital banking adoption follows a two-stage process, in which intention formation and actual usage
are driven by different mechanisms, and that generational differences operate primarily through individual and social dimensions rather than technological
evaluation. The study offers theoretical and practical insights by clarifying adoption pathways and informing more targeted digital banking strategies.
Keywords: Digital banking, UTAUT2, adoption, Millennials, Generation Z