Abstract
Wave of innovative technology is fast replacing the traditional financial services by new innovative financial services provided by Neo Banks. Despite that, Indian consumers are not embracing Neo Banks at the expected rate. Using Neo Bank, people can transact easily, make fund transfer, opening of new bank account etc. 24/7 spread over the year etc. However, its effective adoption is a bottleneck because of inherent and unknown barriers. However, some attempts on the identification of these barriers have been carried out; the literature lacks a thorough investigation into the relationship and interdependencies among them. We have identified ten possible barriers via literate review and in consultation with the experts. These barriers have been analyzed using Fuzzy DEMATEL method based on the expert’s responses. Moreover, the analysis demonstrates Digital Inclusion barrier is the prominent one out of total barriers. Since it will affect the other barriers of Neo Banks adoption but it would not be affected by any other barriers it has a lesser threshold value. Hence, Digital Inclusion barrier is considered as most significant barrier which must be overcome for ensuring the effective adoption of Neo Bank.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Alshallaqi, M., Al Halbusi, H., Abbas, M., Alhaiden, H.: Resistance to innovation in low-income populations: the case of university students’ resistance to using digital productivity applications. Frontiers in Psychology 13(1), 961589 (2023)
Alsukaini, A.K.M., Sumra, K., Khan, R., Awan, T.M.: New trends in digital marketing emergence during pandemic times. International Journal of Innovation Science 15(1), 167185 (2023)
Amoah, J., Nutakor, F., Li, J., Sanful, B., Odei, M.A.: Antecedents of social media usage intensity in the financial sector of an emerging economy: a PLS-Sem Algorithm. Management & Marketing: Challenges for the Knowledge Society 16(4), 387406 (2023)
Imtiaz, A., Wajeeha, A., Yujong, H.: Barrier in adoption of internet banking: a structural equation modeling-neural network approach. Technol. Soc. 61(1), 101231 (2020)
Bajpai, A., Misra, S.C.: Barriers to implementing digitalization in the Indian construction industry. International Journal of Quality & Reliability Management 39(10), 2438–2464 (2020)
Baklouti, F., Boukamcha, F.: Consumer Resistance to internet banking services: implications for the innovation resistance theory. Journal of Financial Services Marketing 1(1) (2023)
Cahaya, Y.F., Mursitama, T.N., Hamsal, M., Tjhin, V.U.: Increasing e-loyalty of banking customers through customer trust and commitment. International Journal of Applied Economics, Finance and Accounting 15(2), 96104 (2023)
Chrzanowski, M., Dabrowski, I.K.: A dynamic perspective on competition between traditional banking and banking fintechs. Research papers of Wroclaw University of Economics and Business 65(2), 1–14 (2021)
Digalwar, A.K., Saraswat, S.K., Rastogi, A., Thomas, R.G.: A comprehensive framework for analysis and evaluation of factors responsible for sustainable growth of electric vehicles in India. Journal of Cleaner Production 378(1), 134601 (2022)
Irina, D., Peter, O., Darush, Y.: Barriers to bank customers’ intention to fully adopt digital payment methods. International Journal of Quality Services and Science 14(5), 16–36 (2023)
Fisk, R.P., Gallan, A.S., Joubert, A.M., Beekhuyzen, J., Cheung, L., Russell-Bennett, R.: Healing the digital divide with digital inclusion: enabling human capabilities. Journal of Service Research, pp. 1–18 (2022)
Gani, A.B.D., Fernando, Y., Lan, S., Lim, M.K., Tseng, M.-L.: Interplay between cyber supply chain risk management practices and cyber security performance. Industrial Management & Data Systems 123(3), 843–861 (2023)
Ghosh, M.: Empirical study on consumers’ reluctance to mobile payments in a developing economy. Journal of Science and Technology Policy Management, (Article in Press) (2022)
Graf-Drasch, V., Gimpel, H., Bonenberger, L., BlaB, M.: The influence of social norms on expressing sympathy in social media. Journal of Information Technology, pp. 1–24 (2023)
Habib, A., Costa, M.D., Al-Hadi, A.K.: Consequence of local social norms: a review of the literature in accounting, finance and corporate governance. Accounting & Finance 63(1), 345 (2023)
Hammad, M., Islam, M.S., Salam, M.A., Jafry, A.T., Ali, I., Khan, W.A.: Framework for the implementation of smart manufacturing systems: a case in point. Processes 11(1), 1436 (2023)
Puneet, K., Amandeep, D., Naveen, S., Ganesh, S., Mohammad, A.: An innovation resistance theory perspective on mobile payment solutions. Journal f Retailing and Consumer Services 55(1), 102059 (2020)
Khan, S.M., Ali, M., Puah, C.-H., Amin, H., Mubarak, M.S.: Islamic bank customer satisfaction, trust, loyalty and word of mouth: the CREATOR model. Journal of Islamic Accounting nd Business Research 14(5), 740766 (2023)
Seongho, K., Hyuk-Jun, K., Hyeob, K.: Mobile banking service design attributes for the sustainability of internet-only banks: a case study of Kakao Bank. Sustainability 15(1), 6428 (2023)
Kirmani, M.D., Haque, M.A., Sadiq, M.A., Hasan, F.: Cashless preferences during the COVID-19 pandemic: investigating user intentions to continue UPI-based payment systems in India. Journal of Science and Technology Policy Management 14(4), 758–779 (2023)
Kumar, G., Bhujel, R.C., Aggarwal, A., Gupta, D., Yadav, A., Asjad, M.: Analyzing the barriers for aquaponics adoption using integrated BWM and fuzzy DEMATEL approach in Indian context. Environmental Science and Pollution Research 30(1), 47800–47821 (2023)
Lee, J.H., Park, H.: Effect of character marketing and marketing mix on usage intention of internet-only banks: evidence from South Korea. Sage Open 1(1), 111 (2021)
Lai-Ying, L., Teck-Son, H., Keng-Boon, O., June, W.: Predicting mobile wallet resistance: a two-staged structural equation modeling-artificial neural network approach. Int. J. Inf. Manage. 51(1), 102047 (2020)
Liu, J., Wang, Y., Wang, Z.: Multidimensional drivers: exploring contractor rule violations in the construction industry. Engineering, Construction and Architectural Management 30(4), 14961518 (2023)
Mahmud, H., Islam, A.K.M.N., Mitra, R.K.: What drive managers towards algorithm and how to overcome it? Mitigating the impact of innovation resistance through technology readiness. Technological Forecasting & Social Change 193(1), 122641 (2023)
Martinez-Navalon, J.–G., Fernandez-Fernandez, M., Alberto, F.P.: Does privacy and ease of use influence user trust in digital banking applications in Spain and Portugal? International Entrepreneurship and Management Journal 19(1), 781–803 (2023)
Elena, M.-G.: Internet banking service perception in Mexico. Journal of Risk and Financial Management 16(364), 1–13 (2023)
Opricovic, S., Tzeng, G.H.: Compromise solution by MCDM methods: a comparative analysis of VIKOR and TOPSIS. Eur. J. Oper. Res.Oper. Res. 156(2), 445–455 (2004)
Ponnambalam, S.G., Sankaranayanan, B., Karuppiah, K., Thinakaran, S., Chandravelu, P., Lam, H.L.: Analysing the barriers involved in recycling the textile waste in india using Fuzzy DEMATEL. Sustaiinability 15(1), 8864 (2023)
Prakash, A.V., Das, S.: Explaining citizens’ resistance to use digital contact tracing apps: a mixed-method study. International Journal of Information Management 63(1), 102468 (2022)
Rombe, E., Zahara, Z., Santi, I.N., Rahadhini, M.D.: Exploring e-mobile banking implementation barriers on Indonesian millennial generation consumers. International Journal of Data and Network Science 5(1), 579596 (2021)
Romero-Castro, N., Lopez-Cabarcos, M.A., Pineiro-Chousa, J.: Finance, technology and values: a configurational approach to the analysis of rural entrepreneurship. Technol. Forecast. Soc. Chang. 190(1), 122444 (2023)
Roya, S., Yousef, K.-S., Saeid, H., Abdolreza, S., Khalid, O., Karem, C.: A novel hybrid GIS-based multi-criteria decision-making approach for flood susceptibility analysis in large ungauged watersheds. Journal of Flood Risk Management 16(1), 12879 (2023)
Sajid, M., Zakkariya, K.A.: Reasons for resistance to e-waste recycling: evidence from an emerging economy. Asia Pacific Journal of Marketing and Logistics 38(6), 1330–1348 (2023)
Mufida, S., Sujin, S.: What explains smartwatch adoption? a comparative study of South Korea and Indonesia. Asia Marketing Journal 24(2), 78–95 (2022)
Arvind, S., Richa, S.: Internet addiction and psychological well-being among college students: a cross-sectional study from Central India. Journal of Family Medicine and Primary Care 7(1), 147–151 (2018)
Sharma, H., Kumar, H., Mangla, S.K.: Enablers to computer cision technology for sustainable E-waste management. Journal of Cleaner Production 412(1), 137396 (2023)
Shivangi, S., Ammar, S.: Perception of barriers in physical activity participation among middle-aged adults: a qualitative study. Working With Older People 26(3), 196–206 (2023)
Silva, F.A., Shojaei, A.S., Barbosa, B.: Chatbot-based services: a study on customers’ reuse intention. Journal of Theoretical and Applied Electronic Commerce Research 18(1), 457474 (2023)
Piia, S., Teemu, R.: Digital agency of vulnerable people as experienced by rehabilitation professionals. Technol. Soc. 72(1), 102173 (2023)
Statista Market Insights (2017). https://www.statista.com/chart/14192/where-adults-lack-access-to-a-bank-account/. Accessed on 12th July 2023
Statista Market Insights (2022). https://www.statista.com/statistics/1328771/india-leading-neo-banks-by-number-of-users/. Accessed on 12th July 2023
Thakkar, J.J., Thanki, S., Guru, S.: A quantitative framework for health-care service quality assessment in India. Journal of Modeling in Management 18(4), 10641092 (2023)
Tran, T.A., Han, H.S., Han, S.U.: Factors influencing the consumer resistance to use the internet banking services: focused on Vietnam. Asia Life Sciences 1(1), 149–162 (2019)
Tsai, C.-H., Su, P.-C.: The application of multi-server authentication scheme in internet banking transaction environments. Information System and e Business Management 19(1), 77105 (2021)
Widayani, A., Fiernaningsih, N., Herijanto, P.: Barriers to digital payment adoption: micro, small and medium enterprises, management & marketing. Challenges for the Knowledge Society 17(4), 528–542 (2022)
Yongshun, X., Heap-Yih, C., Ming, C.: Modeling the blockchain adoption barriers in the AEC industry. Engineering, Constructions and Architectural Management 30(1), 125–153 (2023)
Emel, Y.: The role of blockchain technology in the sustainability of supply chain management: grey based dematel implementation. Cleaner Logistics and Supply Chain 8(1), 10113 (2023)
Cheolho, Y., Dongsup, L.: Customers’ intentions to switch to internet-only banks: perspective of the push-pull-mooring model. Sustainability 13(8062), 1–20 (2021)
Zang, D.G., Paudel, K.P., Liu, Y., Liu, D., He, Y.: Financial decision-making behaviors of Ethnic Tibetan Households based on mental accounting. Financial Innovation 9(93), 1–26 (2023)
Zhao, L., Xu, Y., Xu, X.: The effects of trust and platform innovation characteristics on consumer behaviors n social commerce: a social influence perspective. Electronic Commerce Research and Applications 60(1), 121284 (2023)
Zhu, Y., Jin, S.: COVID-19, Digital transformation of banks and operational capabilities of commercial banks. Sustainability 15(1) 8783 (2023)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2024 IFIP International Federation for Information Processing
About this paper
Cite this paper
Garg, N., Sahu, G.P. (2024). Modeling the Barriers in Adoption of Neo Banks in India. In: Sharma, S.K., Dwivedi, Y.K., Metri, B., Lal, B., Elbanna, A. (eds) Transfer, Diffusion and Adoption of Next-Generation Digital Technologies. TDIT 2023. IFIP Advances in Information and Communication Technology, vol 698. Springer, Cham. https://doi.org/10.1007/978-3-031-50192-0_17
Download citation
DOI: https://doi.org/10.1007/978-3-031-50192-0_17
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-50191-3
Online ISBN: 978-3-031-50192-0
eBook Packages: Computer ScienceComputer Science (R0)