Adoption of Neo-Banks: A Behavioural Reasoning Theory (BRT) Approach
Sohom Banerjee
Research Scholar, Jaipuria Institute of Management, Noida
Sanchita Chatterjee
Fellow, CUTS International
Ayan Bhattacharjee
Research Associate, CUTS International
DOI: https://doi.org/10.59429/ff.v3i1.9049
Keywords: Neo banks; behavioural reasoning theory (BRT); fintech; structure topic modelling (STM); financial inclusion
Abstract
Changes in preferences of consumers and advancement in technology the banking industry has gone through a change and has resulted to newer forms of banks providing services. One such form is Neo Bank. High demand for Neobanks is caused by wide availability of cell phones and Internet. At the same time, there exist a big problem with the successful persuasion of clients to switch from traditional banking to mobile banking. This is because a great number of customers does not find mobile banking solutions acceptable rather they desire to communicate with banks through face to face contacts or telephonic conversations. In this context, we use Behavioural Reasoning Theory (BRT) an established IS research paradigm to explore the reasons for and against adoption of Neobanks. The data was gathered using netnography method and we have used Structure Topic Modelling (STM) to analyze the data. We extracted insights from the textual data, and performed sentiment analysis to determine how people felt about Neo Banks. According to the findings of our research, the reasons for adopting Neobanks are: Convenience and Digital Accessibility, Cost Savings, Personalisation together with Technological Integration, and Support for Small Businesses. The reasons given against Neobanks are: Security Concerns, Uncertainty in Regulations and Compliance, Problems in the Interface and Financial Literacy Issues, and Consumer Preferences for Traditional Banking. Testing and exploration prior to full adoption and, risk evaluation and value assessment are the variables that are associated with the Behavioural Intention, which is an individual’s conscious decision of performing or not performing a behavior and it is determined by reasons, beliefs and attitude behind it. This research has significant repercussions for managerial decisions and policymaking. To effectively implement strategies that enhance adoption, confidence, and accessibility while also fix unpredictability about legal and security issues, it is crucial for senior leaders of Neobanks, fintech businesses, regulatory bodies, and legislators to have a comprehensive understanding of such factors.
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