PERCEIVED EFFECT OF APP BASED LENDING SERVICES ON LENDING BEHAVIOUR OF BANKS: AN EMPIRICAL STUDY IN BENGALURU

This study explores the perceived impact of app-based lending services on the lending behavior of traditional banks in Bengaluru. With the rapid emergence of FinTech platforms, banks are increasingly challenged to reassess their lending strategies and technological adaptability. The research adopts a quantitative approach using Partial Least Squares Structural EquationModeling (PLS-SEM) to examine relationships among variables such as awareness, perceived usefulness, threat perception, and adaptability. Data from 275 respondents were analyzed to understand how these factors influence banks' responses to digital lending innovations. The findings suggest that perceived usefulness significantly drives banks’ adaptability, while awareness plays a key role in shaping both perceived threat and utility. Although model fit indicators showed partial limitations, the results offer valuable insights into how traditional financial institutions perceive and respond to FinTech disruptions. The study emphasizes the need for strategic collaboration between banks and digital lenders and serves as a reference for policy formulation and innovation integration. Keywords: Perceived Effect, App Based Lending, Lending Behaviour of Banks, Awareness and Threat Perception