Performance and Participation Expectancy if Voluntary Insurance Becomes a Policy of Digital-banking Service-market in Economy Country-wise: Statistical Analysis of Buying Intensions for Insurance in Bangladesh

Abstract

This study assessed e-banking users or customers’ perceptions of using Voluntary Insurance (VI) for marginalizing psychological risk-factors for enhancing the growth-trend of digitaltransactions. The survey collected the data from 250 randomly selected digital-banking-users of Premier Bank customers in Gulshan Branch, Dhaka, Bangladesh using an online, five-point Likert Scale questionnaire. Hierarchical multiple linear regression modelling (HLM) was adopted to evaluate the effects of insurance performance expectancy (IPE) and user’s effort expectancy (UEE) on insurance buying intention (IPI) in digital-banking services, after controlling for the effects of age and education. The results revealed that digital-banking users’ IBIs were significantly influenced by IPE (p<0.01) and UEE (p<0.01). The study concluded that young and educated user consumers were more likely to buy insurance i.e., the group of e-banking users represented higher IBI, if the Voluntary Insurance (VI) is in place as a new product in digital-banking services. Obviously, it ensures to be effective, productive, and useful, and the process requires little effort of users in economy country-wise such as Bangladesh. These findings offer the bank-management & policymakers’ guidelines and for motivational efforts adopting the VI as a new product in digital-banking services in economy country-wise such as Bangladesh. And, once the VI becomes an official product, the bank itself or in a joint effort with an insurance company, can promote and sell it to customers in multifaucets.