Consumer Acceptance of Neobank Insurance Products in India

Abstract: We proposed a theoretical adoption model integrating UTAUT with two additional variables, trust, and perceived risk, to effectively explain the technical elements impacting users' acceptance intention of adopting insurance products through Neobanks. A structured questionnaire was developed and utilised to collect data in order to validate the proposed conceptual model and test the study hypotheses. Our targeted respondents were Indian neo-bank clients who use or intend to utilize neo-bank services. A variance-based Structural Equation Modelling (SEM) technique was used to statistically analyse the data and evaluate the proposed conceptual model. This study employed SPSS 2020, AMOS, and Smart PLS, two-step strategy, which included measurement model validation and structural model testing. The study model provides a significant explanatory power when defining customers' acceptance intentions in light of many factors influencing the purchase decision. Users' acceptance intentions to acquire insurance goods through Neobanks are significantly influenced by performance expectations, effort expectations, trust, and perceived risk, among other factors. The study also explored some constructive relationships and found that effort expectancy and trust have an influence on performance expectancy when it comes to expressing users' acceptance intention of utilising insurance products through Neobanks. To the best of our knowledge, no research has been done to yet on customer acceptability of Neo Banks, particularly their insurance products. This study focused on evaluating consumer acceptance of insurance products of Neobanks, which provide a variety of technology advancements in the fintech sector. Keywords: Neobanks, Consumer Acceptance, Insurance Products, UTAUT Model, Structural Equation Modelling (SEM)