Factors affecting Digital Banking adoption: A review of Literature

Abstract

This paper presents a comprehensive review of the existing literature on the factors affecting digital banking adoption.As the financial industry undergoes significant digital transformation, understanding the variables influencing customers' acceptance and use of digital banking services like Internet Banking, Online Banking, Mobile Banking, UPI, Online Payment, Digital Currency, Mobile Payment Services etc. is crucial for both academics and practitioners.We have presented here a review of literature from 2020 to 2024. The review synthesizes findings from various studies to identify key determinants such as perceived ease of use, perceived usefulness, trust, security concerns, social influence, and demographic factors like age, education, and income. The analysis reveals that while technological factors are critical, psychological and socio-cultural factors also play significant roles in shaping users' attitudes towards digital banking. Furthermore, the paper highlights the evolving nature of these determinants in light of recent technological advancements and the global shift towards a more digital economy. The findings underscore the need for a multidimensional approach to enhancing digital banking adoption and offer insights for future research and policy formulation in this dynamic field.