Physical Bank Visits and Digital Banking Adoption Among Gen-Z Users

2026-01-17

The study examines customers’ banking habits and the adoption of digital banking among saving account holders in the Kathmandu Valley. It focuses on the frequency of physical bank visits, usage of mobile banking applications for routine transactions. Conducted through a quantitative survey using Computer Aided Personal Interviews (CAPI) with 400 respondents, it also explores the impact of digital banking on physical bank visit behavior evaluating customer satisfaction, security perceptions, and expectations for future improvements in mobile banking services.

The analysis shows that saving remains the main purpose for holding an account (91%) including across all age groups, genders, and socio-economic categories. Physical bank visits are limited, with 71% visiting only 1–2 times in the last three months, primarily for depositing or withdrawing money. Mobile banking adoption is very high, with 97% of respondents using mobile apps mainly for money transfers (83%). Digital banking significantly reduces bank visits, as 86% report a decrease due to app availability. Satisfaction with mobile banking remains strong (69%), although technical or server-related issues cause some dissatisfaction (62%). Security perception is largely positive, with 70% feeling secure, particularly female respondents (73%) and middle-class respondents (79%). Future behavior indicates growing reliance on digital banking, with 66% expecting a further decline in bank visits.

Overall, the study highlights a strong shift toward digital banking, among Gen-Z users. Mobile banking applications become the preferred channel for routine transactions, reducing physical bank visits while maintaining high satisfaction and security perception. Users rely on mobile banking primarily for convenience and efficiency, and most expect current services to continue without major changes.

Factsheet

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