Gen Z’s Perspectives
The broadband internet penetration and affordability of smartphones have caused behavioural changes in the usage of banking services. Spending, saving and transferring money are no longer tied to physical interaction. It is becoming increasingly invisible, happening in seconds, through mobile banking apps. There has been significant growth in the adoption of mobile banking rapidly shifting from traditional brick and mortar setting. Furthermore, the global COVID–19 pandemic enabled consumers’ shift to digital banking services. According to Nepal Rastra Bank (NRB), the number of registered mobile banking users grew from 18.3 million in 2022 to over 27.7 million in 2025, reflecting a substantial rise in mobile banking adoption over the years.
For Generation Z (Gen Z), this shift is more noticeable, as their day-to-day activities are shaped by mobile-first habits. Born in the digital age, this cohort has never known a world without constant internet connectivity, smartphones and social media, shaping their expectations around speed, simplicity and security. Moreover, mobile banking meets this expectation by offering quick, accessible and paperless financial services. Compared to the earlier generations, Gen Z is different in their spending behaviours and they want their financial life at their fingertips. According to World Data Lab, Gen Z’s spending pattern is higher than any other generation had at the same age.
While mobile banking aligns closely with the lifestyle of Gen Z, have you ever wondered how this cohort actually engages with these platforms? Questions revolve around for what purpose Gen Z users adopt mobile banking, their level of satisfaction and their perceived security toward these platforms. Despite increased adoption of mobile banking, branch visits remain common, therefore frequency and purpose of the visit need to be explored. Furthermore, this study examines how mobile banking has impacted users’ physical bank visits.
To explore this further, Avant Garde Solutions, a Nepal-based marketing research firm, conducted a face-to-face quantitative survey with 400 Gen Z respondents in Kathmandu Valley who have maintained saving accounts in various commercial banks. This study excludes the respondents who have availed credit facility, visit the bank for their own business transactions and on behalf of the organisation where the respondents are employed. The majority of the respondents were aged between 18-24 years (72.5%) and 25-28 years (27.5%). The gender distribution was equal with 50% male and 50% female. Majority of the respondents were single (91%) and 9% were married. In terms of socio-economic status, 66.25% of the respondents belonged to upper class followed by upper middle-class (25.25%) and middle-class (8.50%).
A strong trend emerged in the adoption of mobile banking among Gen Z users with 97% of the respondents using mobile banking on their smartphones. Besides smartphones, 3% also use the web version of mobile banking in their personal computers. This indicates that widespread use of smartphones and broadband internet services have largely enabled the financial behaviour of Gen Z users as they prioritise convenience, accessibility and on-to-go banking approach over traditional methods. Among the most common use of mobile banking, money transfers dominate with 83% respondents using it to transfer funds, followed by mobile recharges/top-ups (63%), bill payments (59%) and balance checks (29%). Mobile banking is adopted primarily for quick, routine transactions, emphasising its role as convenience-driven in daily life. This dominance of transfer-related activities and utility payments highlight the growing preference for cashless and digitally connected financial behaviour among young users.
Furthermore, long-term adoption of the mobile banking depends on satisfaction and the security that the platform provides. Satisfaction towards mobile banking is significantly high as 69% mentioned satisfied and 19% extremely satisfied. However, few respondents reported dissatisfaction, highlighting the importance of improved app performance, user friendly interface, enhanced overall users experience and broader service offerings. This implies that although Gen Z has already embraced mobile banking significantly, maintaining long-term usage and loyalty will depend on continuous innovation and strengthening positive brand image. Furthermore, 70% of the respondents mentioned mobile banking as secure and 16% reported extremely secure. Few of the respondents expressed insecurity toward mobile banking expressing concerns on data theft, frequent login and password changes. The high level of satisfaction and perceived security indicate that mobile banking has become an integral part of the financial lifestyle of Gen Z users.
The growing dominance of smartphones has significantly accelerated mobile banking adoption. The findings further highlight a deeper insight on how Gen Z interacts with the traditional banking system. Despite the shift to digital usage, physical bank visits are still prominent and is highly purpose driven. In terms of their bank visits, 1% of the respondents visit daily, weekly (3%), monthly (15%), once in three months (13%), once in six months (12%), once in a year (8%), and when required (48%). The low frequency of visits indicates increasing confidence towards mobile banking and supporting their financial transactions needs. These visits have been highly task specific with 78% visits for cash deposits and withdrawals, mobile banking update (44%), card-related issues (13%), DMAT services (12%) and KYC updates (10%).
This reinforces that branch visits are no longer routine but are instead driven by essential or problem-solving needs that cannot be fully addressed through mobile banking. Specifically, when asked whether their bank visits have increased, decreased, or remained the same due to mobile banking: 86% stated their visits have decreased, while 12% reported no change and only 3% indicated an increase in their bank visits. This clearly demonstrates a strong substitution effect, where digital banking platforms are increasingly replacing routine in-person banking activities.
In conclusion, there has been accelerating shift toward mobile banking from traditional banking among Gen Z users in Nepal. Mobile banking is no longer viewed as an emerging alternative but is considered a primary mode for financial transactions. Physical bank visits, once a routine part of financial life, are now largely limited to essential or specific service needs. While satisfaction is relatively on the higher side, issues related to technical performance, usability and awareness influence users’ experience and limit adoption.
Mobile banking apps should be continuously upgraded with the introduction of new features and automation to enhance overall user experience. This includes online KYC and DEMAT services, mobile bank updates and handling card services. This should be supported through centralised 24/7 customer support systems with specialised service teams. This will enable reducing customers’ bank visits saving their time and effort. The transaction limit through the web version of mobile banking is higher than transacting using smartphones. Awareness on using the web version may reduce customers’ bank visits whose transaction volume is higher. This will also enable customers to use the mobile banking apps rather than other substitute applications for fund transfer. Further, the introduction of new features and their promotion will encourage users to avail a wide range of mobile banking services, thereby reducing their dependency on other applications.
Shrestha and Shakya are associated with Avant Garde Solutions, a marketing research institution based in Nepal.
