Background: Challenger banks, distinguished by their innovative approach, have emerged as key players in the fintech landscape. As consumers increasingly prioritize convenience, safety, and digital accessibility in banking, challenger banks have the potential to revolutionize consumer behavior. However, while research has explored the impact of fintech on the banking sector, there remains a gap in understanding consumer motivations for choosing challenger banks and in which type of scenarios consumers are opting for challenger banks rather than traditional banks as well as the role of technology acceptance in driving consumer preferences.

Purpose: The purpose of this thesis is to observe how consumers utilize challenger banks’ services and the adoption process of fintech technologies.  

Method: This thesis employs a qualitative approach with a deductive methodology. It will conduct multiple exploratory case studies to gain insights. The study utilizes purposive and convenience sampling, a non-random method, to select participants. Data is collected through semi-structured interviews featuring open-ended questions. Thematic analysis is employed as the method for data analysis to identify patterns across various cases.

Conclusion: The factors influencing consumers' decisions to utilize challenger banks are based upon the following factors: social influence, affordability, convenience, and apprehension as key factors. The research found that consumers often adopt challenger banks as supplementary services, not full replacements for traditional banks. The research also suggests that the UTAUT2 framework could be expanded to consider cultural preferences.