An Empirical Study of Digital Lending in India and the Variables Associated with its Adoption

Abstract

Objective: the digital lending platform is a significant and innovative business concept in the field of financial technology. It creates a direct connection between lenders and borrowers. Scientists studied the technique by which digital lending companies use leverage. This study proposes an updated technology acceptance model (TAM) to investigate the factors influencing consumer adoption of digital lending platforms. More specifically, it examines how service quality and perceived threat influence trust development. Methods: this study employs structural equation modeling (SEM) to investigate the potential links between the underlying variables. Results: the study found that customers’ attitudes toward adoption of digital lending platforms are highly influenced by trust, perceived value, and perceived ease of use. The quality of service has a considerable impact on consumers’ perceptions of risk while using digital lending services. The generated model corresponds to the findings of previous studies. Conclusions: the findings of the continuing research are important for optimizing platform marketing strategies and translating strategic goals into concrete activities. To improve future research, we recommend integrating more variables to have a more comprehensive understanding of the adoption intentions of digital lending platforms.

Keywords

• digital lending
• adoption intention
• technology acceptance model
• structural equation modeling
• fintech