Modeling the Barriers in Adoption of Neo Banks in India

Wave of innovative technology is fast replacing the traditional financial services by new innovative financial services provided by Neo Banks. Despite that, Indian consumers are not embracing Neo Banks at the expected rate. Using Neo Bank, people can transact easily, make fund transfer, opening of new bank account etc. 24/7 spread over the year etc. However, its effective adoption is a bottleneck because of inherent and unknown barriers. However, some attempts on the identification of these barriers have been carried out; the literature lacks a thorough investigation into the relationship and interdependencies among them. We have identified ten possible barriers via literate review and in consultation with the experts. These barriers have been analyzed using Fuzzy DEMATEL method based on the expert’s responses. Moreover, the analysis demonstrates Digital Inclusion barrier is the prominent one out of total barriers. Since it will affect the other barriers of Neo Banks adoption but it would not be affected by any other barriers it has a lesser threshold value. Hence, Digital Inclusion barrier is considered as most significant barrier which must be overcome for ensuring the effective adoption of Neo Bank.