Digital Financial Technology Adoption in Non-Banking Financial Companies: The Role of Digital Literacy, Trust, and Artificial Intelligence among Customers in Emerging Markets
DOI:
https://doi.org/10.66635/ptv9vc44Keywords:
Digital Financial Technology, NBFCs, Technology Adoption, UTAUT, TAM, Digital LiteracyAbstract
Digital technologies are moving fast, changing the financial services landscape by making financial solutions quicker, easier to access, and more focused on the customer. Most research digs into how technology gets adopted in commercial banks and fintech companies but not much looks at Non-Banking Financial Companies (NBFCs), especially in regions where people often lack solid financial services. This study zeroes in on why customers of Cholamandalam Investment and Finance Company Limited (CIFCL) in Jharkhand, India, choose to adopt digital financial technologies. Using the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT), it explores how perceived usefulness, ease of use, social influence, facilitating conditions, digital literacy, trust in technology, and customers’ attitudes toward AI-driven services shape adoption behavior (Davis, 1989; Venkatesh et al., 2003). The research takes a quantitative approach, analyzing data through Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Structural Equation Modeling (SEM). Results show that digital literacy and trust matter most for technology adoption, after that, perceived usefulness and ease of use also play big roles. Customers tend to feel positive about AI-powered services like chatbots, predictive analytics, and automated customer support. By including factors unique to NBFCs in semi-urban and rural areas, this study expands on existing technology adoption theories. The findings bring fresh insights and practical advice for advancing digital transformation, boosting customer engagement, and improving financial inclusion in emerging economies through technology-enabled financial services.
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