Title: Assessing the effectiveness of the BC model in financial inclusion of the poor and marginalised utilising the theory of service convenience

Authors: Mohd Adnan; Jaidev Singh Negi

Addresses: HNB Garhwal University, SRT Campus, Srinagar Garhwal, Uttarakhand, India ' HNB Garhwal University, SRT Campus, Srinagar Garhwal, Uttarakhand, India

Abstract: The business correspondent model has emerged as a predominant delivery channel for banking services for the poor and marginalised, especially in remote and rural regions in India. However, despite its growing importance and role in banking outreach, there is an absence of empirical research on its effect on banking behaviour from the consumer perspective. Filling this gap, the current study examines the attributes of the BC model and its effect on the banking behaviour of users employing the theory of service convenience. For this, a scale was developed and validated and hypothesised relations were tested employing PLS-SEM using SmartPLS version 4. The findings reveal a statistically significant positive impact of the attributes of the BC model on banking usage behaviour. This study contributes to the broader literature on financial inclusion, consumer behaviour, and service marketing and the findings hold implications for policymakers and financial institutions, especially in developing countries.

Keywords: financial inclusion; banking usage behaviour; BUB; theory of service convenience; PLS-SEM; business correspondent model; BC.

DOI: 10.1504/IJEBANK.2025.143018

International Journal of Electronic Banking, 2025 Vol.5 No.1, pp.1 - 24

Received: 25 Oct 2023
Accepted: 23 Mar 2024
Published online: 02 Dec 2024 *

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