Customers’ Opinions on Voluntary-Insurance in Bank-led Digital-banking: Statistical Analysis for Policymakers’ Attentions

Abstract

In 21st century business-mentality era, bank-services have been modernized where customers compete for comparative time-saving-options. However, many factors in services are unpredictable. Perceived-risk has been undermining the prospects of cashless-society country-wise such as Bangladesh. But banks should work eliminating issues particularly perceived risk by adopting Voluntary Insurance (VI) provision as proposed by Rahman (2018) in literature. Now using statistical techniques, this study examined customers’ opinions on VI as provision in e-banking services. Findings of this study show that customers’ “age group” and “education level” have preferences for enacting VI as Provision. Data statistics were collected from 200 respondents of city & rural areas of Bangladesh, which was used to test the mediated model using the Hierarchical Regression. The results have supported that the perceived-risk has acted as a partial mediator in the relationship between independent variables particularly psychological risk, trust, financial, performance, dispute, pin-fraud, social/ privacy-risk to dependent variable, that is, customers’ preferences for VI provision in e-banking services. Absolute risk-free services can attract more users of bank-led e-banking. Accordingly, policymakers can play vital role ensuring modern-society when it come e-banking services. Since digital transactions are not insured under Bank Laws in Bangladesh, like in other countries, this effort is for bringing the findings to the attentions of policymakers country-wise. Keywords: bank-led digital, perceived risk, voluntary insurance as banking-provision, risk-free digital-banking services