Leveraging Digital Payment Adoption Experience to Advance the Development of Digital-Only (Neo) Banks: Role of Trust, Risk, Security, and Green Concern

The neobanking and Banking as a Service (BaaS) model implementation by financial service organizations and FinTech firms require wide-ranging acceptance of digital payment systems. Given the development of digital-only (neo) banking at nascent stages, especially in developing economies, there is a need to understand their potential adoption by the customers. In this article, we investigate antecedents to customer's intention to adopt digital-only banks based on their adoption experience with the existing digital payment platforms. From a novel perspective on digital-only banking, this research advances the extant literature on digital financial services by synergistically combining the unified theory of acceptance and use of technology theory and the factors namely attitude, trust, risk, security, and green concern. The structural equation model based on a cross-sectional sample found that the behavioral intention to adopt digital-only banks is significantly influenced by effort expectancy, hedonic motivation, performance expectancy, and social influence, in addition to attitude, trust, perceived risk, perceived security, and green concern. This study adds to the growing theoretic debate in the field by stressing the significance of examining given contextual factors in addition to previously established theories for studying purely digital services. The managers can draw upon the findings for leading the way to the wide-ranging implementation of BaaS.