ABSTRACT
In developing countries, digital banking has
been introduced and, although it has grown
tremendously, it still coexists with traditional banking, with branch service. The objective of this study is to explore the elements in the quality
perception of Generation Z that makes them prefer traditional banking to
digital banking in the context of a developing country, Mexico. The study of quality perception is implemented through the
application of the SERVQUAL model with 22 items. There were applied 394
online surveys to users of traditional or digital banking from generation Z.
Qualitative content analysis is used to understand the customer’s quality
perception of traditional banking, in which
the variables considered were: tangibility, reliability, responsiveness,
assurance, and empathy, which were evaluated through a 7-point Likert-type
satisfaction survey (1 = Completely disagree, 7 = Completely agree). In this
study, it was identified that the responsiveness variable which considers the
attitudinal aspects of the branch staff and communication with the staff in
traditional banking services, is the one that has the greatest impact on
generation Z consumers, regardless of their socioeconomic status, and therefore, explaining the preference for traditional
banking services over digital ones. In addition, from favoring traditional
services, Generation Z users have evolved from a product perspective to a
service perspective, where the aspects of tangibility and
reliability take the background, giving greater relevance to responsiveness,
assurance, and empathy which are focused on the employee- consumer internment. This study offers a
strategic starting point that will facilitate the banking sector to plan the
development of strategies that stimulate the migration of banking services to
digital banking services.