From Banks To Apps : The New Dynamics Of Consumer Credit
DOI:
https://doi.org/10.53555/77pqz514Keywords:
Digital lending, consumer credit behaviour, digital literacy, financial literacy, fintech, mediationAbstract
The research analyses the impact of digital lending sites on credit-based consumer behaviour and forms ease of use, digital literacy, perceived trust, and financial literacy. It was decided to use the mixed method design and to collect the key data in form of structured questions in questionnaires that will be distributed to 180 active users of digital lending apps in the City of Chennai. The SPSS was used to conduct statistical studies, which included correlation, simple regression, and mediation analysis.. The findings revealed that usability significantly improved borrowing frequency, digital literacy emerged as a strong predictor of responsible credit behavior, and perceived trust had a positive effect on repayment discipline. Furthermore, there seems to be a partial correlation between responsible credit behavior and the features of the platform with financial literacy. The study's findings highlight that digital lending has positive impact on loan accessibility and user convenience compared to old traditional lending methods. There are mainly two components that contribute to the determination of the behavioral effects. The first is the extent to which users have faith in other individuals, and the second is the degree to which they have a comprehension of financial ideas. The objective of this research was to improve the safe use of electronic credit by providing policy based suggestions and numbers in this field. Their contributions have made a significant positive impact on the existing body of work about financial technology.
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