Exploring the Viability of Digital-Only Banking: An Empirical Investigation Using the Push-Pull Model

Abstract

Fintech has the potential to revolutionize the banking industry through various digital channels. Digital-only banking is one such channel emerging as a potential disruptor of traditional banking business models. This study applies the push-pull model as a theoretical framework to examine digital-only banks as an alternative. Our sample consists of 214 respondents assessed using component-based structural equation modeling. The results show that low service quality and inconvenience more than customers' perceived advantage affect digital-only banks as an alternative. This study's findings provide valuable insights into the design of digitalonly banking services.