Dimensions of Risk in the Effect of Customers’ Awareness and Knowledge on the Readiness to adopt Neobanks

Abstract

The majority of conventional banks offer digital services during pandemics, while the government promotes cashless transactions in daily life. In India, the Neobanking industry is developing at an increasing rate. It’s a purely online bank with no physical branches; all transactions are made through mobile applications. The purpose of this study is to find out how aware consumers are about neobanks, as well as risk factors and readiness for neobank adoption. additionally, the study builds the SEM model from the survey data of 169 respondents that had access to online banking services. The findings indicates that while financial risk and security risk have no obvious association with knowledge, whereas awareness and social risk have a substantial link with knowledge that results in readiness to use neobanks. As a result, in order to boost client usage in the future, it is essential to raise knowledge about neobanks through media advertising and provide comprehensive information about the applications.