Comprehending the intention to use branchless banking by rural people during the corona pandemic: evidence from Bangladesh

Abstract

The banking sector can take advantage of the proliferation of online banking as well as government’s reinforcement of cashless transactions to expedite the usage of branchless banking. The prime objective of this study is to examine the factors that affect rural people’s bounded rational intention toward branchless banking conduct during this Corona Pandemic in Bangladesh. In doing so, the theory of bounded rational intention was used as its theoretical background. Data (n = 390) were collected from the people residing in the rural areas surrounding branchless banking booths where no branch banking services are available. Data were analyzed employing structural equation modeling by AMOS software. The findings of the study indicate that all factors are positively significant to influence the rural people’s bounded rational intention toward branchless banking behavior. The results also show that trustworthiness and normative structure exhibit the highest positive significance to influence people’s bounded rational intention. It implies that the agents ought to be trustworthy for popularizing the branchless banking services in the rural areas. The outputs of this study provide insight into branchless banking services which will help banks and financial institutions formulate right policy on branchless banking strategy.