Title: An impact assessment of technological innovations in the credit delivery of the banking sector: evidence from India

Authors: Mili Kar; Manisha Dey; Keya Das Ghosh

Addresses: Faculty of Commerce and Management, St. Xavier's University Kolkata, New Town, West Bengal – 700160, India ' Amity College of Commerce and Finance, Amity University Kolkata, New Town, West Bengal – 700135, India ' Amity College of Commerce and Finance, Amity University Kolkata, New Town, West Bengal – 700135, India

Abstract: Digitalisation in the financial sector is increasingly paving the way for easy, convenient, and paperless work for bank performance and India is also witnessing impressive growth in digital banking transactions. As per the data released by RBI, the share of digital payments against total non-cash retail payments increased to 98.5% in the year 2020–2021 as compared to its previous year's share of 97.0%. Thus, this study attempts to analyse the impact of technological innovations, particularly, digital payment methods on the performance of bank lending. The study employs the Johansen cointegration test to examine the long run relationship between digital payment methods and the performance of bank lending in India and the Wald test is carried out to examine short-run causality. The findings of the study confirm that there is no existence of long-run causality between credit card POS, debit card POS, mobile banking, interbank transactions, and NEFT on bank lending. On the other hand, the test found the existence of short-run causality between the select payment methods and bank lending.

Keywords: technological innovations; digital banking; innovative payment methods; bank lending; cointegration.

DOI: 10.1504/IJBIR.2025.148871

International Journal of Business Innovation and Research, 2025 Vol.38 No.2, pp.186 - 203

Received: 09 Mar 2022
Accepted: 19 Aug 2022
Published online: 30 Sep 2025 *

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