A Study On The Impact Of Consumer Risk Perception And Innovativeness On Digital Banking Adoption In India.

Abstract

Purpose – The purpose of this paper is to analyse how consumer innovativeness can influence as a variable to positively impact digital banking adoption by reducing consumer perceived risk.

Design/methodology/approach –Structural equation modelling techniques was employed to study the impact of innovativeness and risk on digital banking adoption.  The sample consists of 100 digital banking services users. Risk has been  measured as a formative construct.             

Findings – Results reveals consumer innovativeness as a key construct to improve digital banking adoption. Innovativeness effectively reduce consumer risk perception of using digital banking channel in the banking services context.

Practical implications – Practical guidelines are provided to bank management on how to use consumer innovativeness level as a segmentation variable to leverage migration to digital banking among actual customers who are nonusers or very rare users.

Originality/value – There is a lack of studies which connect consumer innovativeness and perceived risk in the digital banking context and specially on adoption of digital channel of banking from traditional banking avenues. Formative configuration of risk is quite an innovative approach to measure this construct.