Neo Banking and Financial Empowerment in India: An Empirical Study of Convenience Factors, Trust, and Customer Adoption
DOI:
https://doi.org/10.64882/ijrt.v14.iS1.1119Keywords:
Neo Banking, Financial Empowerment, Convenience Factors, Trust, Customer Adoption, Structural Equation Modelling, Digital Financial Inclusion, Fintech InnovationAbstract
The swift evolution of financial technology has reshaped the worldwide banking landscape, resulting in the rise of neo banks—entirely digital, branchless entities providing services via mobile platforms. In India, the rapid expansion of neo banking can be attributed to the surge in smartphone usage, advancements in digital infrastructure, and strategic policy initiatives aimed at enhancing financial inclusion. Nevertheless, there is a scarcity of empirical studies that have investigated the interplay between convenience factors and trust in relation to customer adoption and financial empowerment. In response to this gap, the current research constructs and rigorously evaluates a cohesive theoretical framework within the Indian context.
Employing a quantitative research approach, primary data were gathered from users of neo banking via a structured questionnaire assessed on a five-point Likert scale. Structural Equation Modeling (SEM) was utilized for the analysis. The evaluation of convenience encompassed factors such as ease of use, accessibility, speed, and availability, whereas trust was characterized by elements of security, privacy, and system reliability. The findings demonstrate that factors related to convenience and trust play a crucial role in customer adoption, subsequently leading to a positive effect on financial empowerment. The relationships are partially mediated by customer adoption. This research provides both theoretical frameworks and practical applications aimed at enhancing digital financial inclusion within the Indian context.
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