Exploring the factors influencing hesitation among textile industry weavers in adopting digital banking services in India

Abstract

These small textile weavers in this emerging country such as India have been hesitant to adopt digital banking methods. This is due to a lack of awareness and trust in digital payment systems, as well as a preference for traditional payment methods. Additionally, many small textile weavers lack the necessary infrastructure, such as smartphones and internet connectivity, to engage in digital banking. These challenges have created a barrier for small textile weavers to fully participate in India's growing digital economy. This study is an attempt not only to highlight the various realistic problems that are responsible for hesitation among textile weavers of India in the usage of digital banking but also to formulate a suitable model that could depict the significant variables that are responsible for the hesitation in the usage of digital banking among small textile weavers by using Step-wise regression method. The study relies on primary data collected by questionnaire from weavers in the top ten states in India based on residence and number of weavers, with 454 weavers participating from various states. The results of the study depict that there are 5 significant factors or predictors that are responsible for the hesitation among weavers of India in using e-banking namely a sense of insecurity due to cyber-crime, unaffordability of smartphones, lack of knowledge in operating smartphones, demonstration effect and network issues.