A partial least squares approach to digital finance adoption

• Published in: Journal of financial services marketing 2022-12, Vol.27 (4), p.308-321
• Main Authors: Jain, Niyati, Raman, T. V.
• Format: Article
• Language: English
• Subjects: Economics and Finance; Finance; Financial Services; Marketing; Original; Original Article; Questionnaires
• ISSN: 1363-0539; 1479-1846
• DOI: 10.1057/s41264-021-00127-8

In present times, the adoption and adaption of technology have become empirical. This paper helps in determining the factors of perceived risk and perceived benefits in order to understand the willingness or hesitance of people to adopt digital finance. An attempt is made to study the influence of perceived risk and benefit as the determinants of digital finance adoption. The data were collected from individuals of Northern India through a structured questionnaire. The study collected data from 411 respondents through a structured questionnaire. Partial Least Square Structural Equation Modelling has been adopted to analyze the data through SmartPLSv2. For better understanding, perceived risk constituted three constructs-Security risk, financial risk and performance risk, and perceived benefit included seamless transaction, economic benefit and convenience. The research concluded that both perceived risk and benefits influence the adoption of digital finance. Perceived benefit has more impact on digital finance adoption than perceived risk. The findings of the paper are beneficial for digital finance service providers and marketers to enhance the awareness and advantages of digital finance according to the needs of consumers. The present study adds value to the existing literature on the relationship between perceived risk, perceived benefit and adoption of digital finance.