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Purpose

The study examines factors influencing the adoption and usage of neobanking services by integrating the UTAUT2 framework with net valence theory and incorporating context-specific variables such as perceived risk, environmental consciousness, convenience and trust.

Design/methodology/approach

Data were collected through purposive sampling using a structured questionnaire administered to Generation Y and Z respondents. A hybrid analytical approach was adopted, combining PLS-SEM for hypothesis testing with ANN analysis.

Findings

Findings show that performance expectancy strongly drives behavioral intention, shaped significantly by effort expectancy and convenience, while price value also enhances intention. Social influence and hedonic motivation are not significant predictors. Trust and personal innovativeness do not moderate the relationships between perceived risk and behavioral intention or between intention and usage behavior. Environmental consciousness improves effort expectancy but not performance expectancy. Although overall perceived risk does not directly influence intention, its subdimensions meaningfully shape users' uncertainty perceptions, challenging traditional assumptions in UTAUT2.

Originality/value

The study integrates the UTAUT2 framework with net valence theory and incorporates context-specific variables such as perceived risk, environmental consciousness, convenience and trust, while employing a hybrid analytical approach combining PLS-SEM and ANN analysis to examine adoption and usage of neo-banking services among Generation Y and Z consumers.

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