ABSTRACT
Generally, the easiest way to withdraw money from your bank account is by using an Automated Teller Machine (ATM). The user can withdraw the money by inserting their card into the slot on the machine, and then entering a four-digit Personal Identification Number (PIN) to complete the transaction process. Similarly, some banks adopted the method of using a One Time Password (OTP) to complete the transaction process to make it more secure. With the recent advancements in technology, there are many new methods that can be used for withdrawing money from ATMs, like cardless cash withdrawal or using one's biometrics. But, due to the recent COVID-19 pandemic, we refrain from using things that are not sanitized properly. People started avoiding going to the ATMs since hygiene was a major concern during the pandemic. Also, due to the constant hand washing and the use of sanitizers, the use of conventional biometrics was not efficient. As a result, the idea of using a method that is contact-less and is also more secure emerged, i.e., the palm vein technology. The palm vein technology uses a person's vein pattern, which is unique to everyone and can help us achieve better results with greater accuracy. The paper proposes a concept of using a person's vein pattern as a method of contact-less authentication. It is an extremely safe verification procedure because no two people in the world, not even identical twins, can have the same palm vein structure or pattern. Additionally, it is more secure because it is nearly impossible to replicate the palm vein pattern. © 2022 IEEE.
ABSTRACT
Purpose>This study aims to empirically develop a reliable and valid instrument measuring the online service quality in the context of the banking sector in India.Design/methodology/approach>The methodological framework of this research comprises developing an instrument that is based on previous literature, qualitative and quantitative procedure. The study used the survey method and collected data via a well-structured questionnaire from a sample of active Internet banking users. The proposed instrument is identified by the data-reduction technique that is exploratory factor analysis (EFA), and validated through the confirmatory factor analysis (CFA).Findings>The results confirmed that the digital banking service quality scale (DBSQual) contains 24 items in seven dimensions: (1) web architecture, (2) user friendliness, (3) efficiency of website, (4) reliability, (5) responsiveness, (6) security and (7) personalization. The relationship between digital banking service quality and e-customer satisfaction has also been found to be significant in this study.Research limitations/implications>The results of this study do not find general application for different banks operating in the same sector in India. More testing of DBSQual is required across various different contexts for validity augmentation. In addition, findings would be more reliable if the non-Indian context could be taken into consideration. Thus, such limitations open a window for future research.Practical implications>This study is quite fruitful for the banking organizations in measuring their online services, and enables them to implement their marketing and operational strategies more effectively and efficiently.Originality/value>The contribution of this study is the development and validation of a new instrument that is DBSQual that contains seven determinants of customers' e-service quality perception, emphasis on measuring online service quality in the Indian banking sector. These determinants will offer banks a promising starting idea for establishing an effective quality management for their online businesses. They will be able to increase the opportunities by tapping themselves at a competitive edge.
ABSTRACT
In a VUCA world, things are extremely unpredictable and the onset of the COVID-19 took every industry by storm. The banking industry is witnessing seismic shifts as traditional net banking banks are being challenged by new-age, digital-only wallets that focus on a hyper-personalized digital-first approach to replace the traditional net banking experience. This research aims to understand the shifts in millennial customer behaviour that have taken place as they progress from net banking to digital wallets for their day-to-day payments. This research is based on primary quantitative data along with an intensive analysis of research papers, articles, and journals. The findings suggest that millennial customers are willing to try out new digital wallet apps and consider them reliable and convenient, indicating high levels of acceptance. Three key factors were majorly responsible for the change in customer behaviour from net banking to digital wallets 1) Performance efficiency 2) social influence 3) Safety. Therefore, digital wallets need to focus on these factors to maximize their digital interactions and embrace innovation to help millennials in their day-to-day banking needs.
ABSTRACT
In the economic development of a nation, banks occupy an important place. Commercial banks as financial institutions have also emerged as significant sources of funds to industry by virtue of which they constitute an important element of the institutional structure of the capital market in India. Banks assist the establishment and development of well-economic infrastructure for better living standards and are a good source for the procurement of credit to vulnerable groups. They initiated varied financial products and services for inclusive growth at affordable costs. The main purpose of the study is to identify the specific role played by commercial banks in India for achieving financial inclusion. In this research, Firstly, the authors will talk about the significance of financial inclusion in detail;later, the focal point is on the initiatives and role of commercial banks to achieve financial inclusion. The study is based on a systematic review of the literature. The researchers have reviewed the literature of the last decade to realize the financial inclusion growth through the banks. A longitudinal manner literature review has been carried out. The findings of this review paper suggested that various significant contributions rendered by the Indian banking sector towards inclusive growth and to the unbanked populace are Bank branch penetration, Setting up of BC/BF outlets to a large extent, no-frill accounts opening with nil or no balance, Expansion of ATM density in rural and semi-rural areas, Rendering flexible credit facility to MSMEs, SHGs and Villagers to make them economically strong, the introduction of technology-based initiatives such as online banking, Mobile banking, telebanking, Kiosks, and smart cards, simplified KYC norms, distributing General credit cards and Kisan credit cards, and enhancing the financial literacy among the public. The study also concentrates on the performance of banks for financial inclusion before and after the adoption of ICT technology in India.
ABSTRACT
When the COVID-19 pandemic caused businesses to close and triggered high unemployment in 2020, millions of unbanked U.S. households, those without a bank account, had to wait for weeks and months for their stimulus checks to arrive. The delayed delivery of stimulus checks issued by the Coronavirus Aid, Relief, and Economic Security (CARES) Act sheds light on the critical role that safe, affordable financial services and products play in people’s ability to cope with financial shocks. Dialogues over banking practices have been framed with a banked-unbanked dichotomous framework that masks more nuanced understandings of households’ financial realities, including the underbanked, who use a bank account and alternative financial services simultaneously. Using data from the 2015 National Financial Capability Study, this study identifies and compares predictors of being underbanked and unbanked, respectively. We found that the underbanked group is a sizable, distinctively different group. Income volatility and welfare benefit receipt are both associated with being underbanked rather than unbanked. Our findings call for expanding the current, limited framework to gain more complete, nuanced understandings of banking practices.
ABSTRACT
In the recent times, digital financial services have seen exponential growth with expanded opportunities to individuals, especially women. In 2020, more than 240 million women, as compared to data of the year 2014, have a bank account and access to mobile payment services. However, compared to men, women are more likely to be poor and have less participation in the formal economy. They mostly find jobs in the informal economy. Therefore, there is a need to support women's financial status by providing them with appropriate infrastructure and resources and removing barriers to digital financial inclusion. In addition, the policymakers need to address the challenges in access to financial services for women, different laws and regulations, and limited access to technology. The study explores the challenges to women's access to online banking and policy options to strengthen women's participation in digital financial services. © 2022 IEEE.
ABSTRACT
(1) This study aims to predict the youth customers’ defection in retail banking. The sample comprised 602 young adult bank customers. (2) The study applied Machine learning techniques, including ensembles, to predict the possibility of churn. (3) The absence of mobile banking, zero-interest personal loans, access to ATMs, and customer care and support were critical driving factors to churn. The ExtraTreeClassifier model resulted in an accuracy rate of 92%, and an AUC of 91.88% validated the findings. (4) Customer retention is one of the critical success factors for organizations so as to enhance the business value. It is imperative for banks to predict the drivers of churn among their young adult customers so as to create and deliver proactive enable quality services.
ABSTRACT
Purpose>This study examines the relationship between prepaid debit card use and the intention to open a bank account within twelve months. The Transtheoretical Model (TTM) of Behavior Change helped to conceptualize one's stage in the process of changing from unbanked status if desired. The Theory of Planned Behavior (TPB) provided a framework to examine factors that influence banking intention. Prepaid debit card use is considered a social norm as it is a popular alternative to banking, and these accounts have increasingly mimicked bank account features in recent years.Design/methodology/approach>Three in-depth focus group interviews with low-income respondents were first conducted in 2012, which revealed a prolific use of prepaid debit cards. Most participants had previous banking history, and despite negative experiences, some requested information about banking terms and “free” banking. These themes and previous studies informed a TPB-based biprobit model, which was estimated using data of an unbanked sample from 2013, 2015 and 2017 waves of the US Survey of Unbanked and Underbanked Households.Findings>Though there was banking interest in the focus groups, no significant empirical association was found between recent prepaid debit card use and banking intention. Going deeper with another sample, we found that current cardholders were equally likely to have become recently banked or to be long-term unbanked but less likely to be long-term banked. Also, factors such as a more recent relationship with banks, use of other alternative financial services for transactions and credit, smartphone ownership, and trust increase banking intention.Research limitations/implications>The main limitation of the study is the cross-section quantitative data. Future research may track banking status over time, particularly as financial technology (fintech) evolves with alternatives that may influence banks and customers to adapt.Practical implications>To compete with “leapfrog” fintech banking alternatives, bank managers should consider utilizing customer segmentation to target “at-risk” customers and former customers with products and terms tailored to meet their banking needs. Banks can also tailor digital products to capture markets in banking desserts through mobile phones.Originality/value>This mixed-methods study is unique in that it builds on insights from earlier in-depth interviews with real unbanked groups to examine a trend in prepaid debit card use and the impact on banking interest.
ABSTRACT
Financial inclusion, defined as the adequate access and usage of formal financial services to improve people’s lives, is a crucial area for the economic development of a country through its various angles. This paper analyzes the impact of selected FinTech companies on financial inclusion in their respective countries to obtain lessons of their business models and country environments that can help Peruvian financial inclusion. The selected FinTechs are M-PESA in Kenya, Nubank in Brazil, GCASH in the Philippines, and Easypaisa in Pakistan, which revolutionized the financial sector in their respective countries. However, a comparative study of their impact on financial inclusion in their respective country has not been conducted yet;therefore, the lessons obtained are helpful for the Peruvian situation due to their practical implications and because they raise possible areas for further and deeper research. The approach of this study considered a qualitative and quantitative method (to find a Pearson correlation between the percentage of the population of Country (A) that are users of FinTech (a) and the six selected demand-side indicators per country retrieved from the Global Findex Database) analysis to understand the results obtained. The results obtained indicate that M-PESA and GCASH, companies specialized in providing basic mobile money transactions such as remittances and withdrawals, did not impact the provision of other financial services such as savings or credit cards. In Easypaisa’s case, this company positively impacts the studied indicators, probably due to its original partnership with a microfinance institution. Regarding Nubank, despite its remarkable growth in the last years, the company does not affect financial inclusion in Brazil yet. Nonetheless, after its recent expansion to provide more financial services, future research could assess the impact of this company on Brazilian financial inclusion.
ABSTRACT
PurposeWhat is the impact of financial literacy on the lending activity of banks? Based on the results of the S&P Global FinLit Survey for an extensive sample of countries, this paper aims to provide the first global test for the impact of country-level financial literacy on the lending activity of commercial banks.Design/methodology/approachThe authors use data on financial literacy by country from the S&P Global FinLit Survey that was completed in 2014 and lending activity and macroeconomic control variables data from the World Bank from 2015 to 2017 to estimate the cross-sectional effect of financial literacy on the importance of loans and of non-performing loans, using different estimation methods.FindingsThe results show that, first, financial literacy favors lending activity, contributing to enhance the importance of credit in the economy. Second, financial literacy prevents bad loans from building up, thus reducing credit risk and favoring the quality of the credit portfolio of banks. These results are robust to several controls for macroeconomic conditions and the quality of institutions. They are also robust to different estimation methods.Research limitations/implicationsThe evidence of the positive (negative) impact of population financial literacy on the quantity (poor quality) of loans suggests that the efforts to enhance the financial literacy of the population contribute to the sustainable development of the financial sector and economic growth.Originality/valueThe paper extends to an international and country-level the available evidence of the consequences of the existence (or lack of) of financial literacy for the lending activity of commercial banks, focusing on the amount of credit granted and the quality of such credit. Thus, the paper provides an exploratory analysis of the impact of country-level financial literacy on the lending activities of commercial banks.