Title: Digital banking adoption in India - UTAUT-3 and perceived risk model

Authors: Puneett Bhatnagr; Anupama Rajesh; Richa Misra

Addresses: Amity Business School, Noida, India ' Amity Business School, Noida, India ' Jaipuria Institute of Management, Noida, India

Abstract: We aim to study a conceptual model based on behavioural theories (UTAUT-3 model) to evaluate the adoption, usage and recommendation for digital banking services in India. We propose this model based on the UTAUT-3 integrated with perceived risk constructs. Hypotheses were developed to determine the relationships and empirically validated using the PLSs-SEM method. Using the survey method, 680 Delhi NCR respondents. Empirical results suggested that behavioural intention (BI) to usage, adoption, and recommendation affects digital banking adoption positively. The research observed that performance expectancy (PE), effort expectancy (EE), perceived privacy risk (PYR) and perceived performance risk (PPR) are the essential constructs influencing the adoption of digital banking services. Post-usage of service users will also recommend these services. The study's outcome offers valuable insights into Indian Neobanking services that researchers have not studied earlier. These insights will help bank managers, risk professionals, IT Developers, regulators, financial intermediaries, and Fintech companies.

Keywords: UTAUT-3; perceived risk; PLS-SEM; digital banking adoption; behavioural intention to use; BIU.

DOI: 10.1504/IJFIB.2025.146329

International Journal of Financial Innovation in Banking, 2025 Vol.3 No.3, pp.215 - 240

Received: 17 Jan 2023
Accepted: 08 May 2023
Published online: 22 May 2025 *

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