Bridging the digital divide: the role of digital literacy in e-banking service quality and trust in Nepal

Abstract

The review investigates how the digital divide and limited digital literacy shape users’ perceptions of e-banking service quality in Nepal, an emerging economy marked by persistent technological gaps. Applying the E-SERVQUAL model to Nepal’s socio-digital environment reveals that limited access and low digital competence undermine trust, satisfaction, and usability, especially among marginalized groups. Findings show that digital readiness mediates users’ evaluation of service quality, and that infrastructural inequality and low literacy deepen financial exclusion. Conceptually, the study extends traditional service-quality frameworks and highlights the need for digital-inclusion policies. Recommended interventions include mobile-first innovation, localized digital-literacy training, and inclusive platform design. Future research should explore technological solutions, interdisciplinary models, and longitudinal approaches to equitable digital finance.