FOSTERING FINANCIAL LITERACY: THE DETERMINANTS OF THE USER’S BEHAVIOR OF THE BRANCHLESS BANKING SERVICE

Abstract

Adoptability of branchless banking depends on knowledge, and attitudes of banking institutions customers. As digital financial services continue to grow, understanding the factors that influence their adoption is crucial for improving financial inclusion. Therefore, this study examines the determinants of user behavior in adopting branchless banking services, focusing on the role of financial literacy, accessibility, perceived ease of use, and perceived risk in the Kathmandu Valley. A descriptive and explanatory research design was employed. This study adopted non-probability purposive sampling design and used 385 sample for the study. The findings reveal that financial literacy significantly influences users' behavior, while accessibility and perceived ease of use also play vital roles in the adoption of branchless banking services. Also, perceived risk was found to negatively impact users' intention to engage with such services. The study suggests that enhancing financial literacy programs, improving accessibility, and reducing perceived risks are key to promoting the widespread adoption of branchless banking services. Policymakers and financial service providers should collaborate to improve digital infrastructure, simplify user experiences, and address security concerns to foster financial inclusion.