Version 1
: Received: 23 April 2024 / Approved: 23 April 2024 / Online: 24 April 2024 (05:15:05 CEST)
How to cite:
Ahmed, F.; Hussain, A.; Khan, S.N.; Malik, A.H.; Asim, M.; Ahmad, S.; El-Affendi, M. Digital Risk and Financial Inclusion: Balance between Auxiliary Innovation and Protecting Digital Banking Customers. Preprints2024, 2024041591. https://doi.org/10.20944/preprints202404.1591.v1
Ahmed, F.; Hussain, A.; Khan, S.N.; Malik, A.H.; Asim, M.; Ahmad, S.; El-Affendi, M. Digital Risk and Financial Inclusion: Balance between Auxiliary Innovation and Protecting Digital Banking Customers. Preprints 2024, 2024041591. https://doi.org/10.20944/preprints202404.1591.v1
Ahmed, F.; Hussain, A.; Khan, S.N.; Malik, A.H.; Asim, M.; Ahmad, S.; El-Affendi, M. Digital Risk and Financial Inclusion: Balance between Auxiliary Innovation and Protecting Digital Banking Customers. Preprints2024, 2024041591. https://doi.org/10.20944/preprints202404.1591.v1
APA Style
Ahmed, F., Hussain, A., Khan, S.N., Malik, A.H., Asim, M., Ahmad, S., & El-Affendi, M. (2024). Digital Risk and Financial Inclusion: Balance between Auxiliary Innovation and Protecting Digital Banking Customers. Preprints. https://doi.org/10.20944/preprints202404.1591.v1
Chicago/Turabian Style
Ahmed, F., Sadique Ahmad and Mohammed El-Affendi. 2024 "Digital Risk and Financial Inclusion: Balance between Auxiliary Innovation and Protecting Digital Banking Customers" Preprints. https://doi.org/10.20944/preprints202404.1591.v1
Abstract
In recent years, the digital economy has played an increasingly important role in enhancing productivity, fostering growth, and facilitating the emergence of digital banking. With the widespread adoption of digital financial services for financial inclusion, the banking sector is experiencing a demand for digital transformation. It is important to note that despite the many advantages of this change, it also disrupts the familiar banking experience that customers have grown to expect, as well as introducing potential risks to maintaining customer protection at previous levels. Many critics have raised concerns regarding customer protection and potential exposure to various risks that may arise from digital financial services, which may result in both financial and non-financial losses. These risks can impact customer retention as dissatisfied customers may switch to alternative service providers. Additionally, reputation can be affected since merely offering digital financial services may not sufficiently safeguard customers. To remain competitive, financial institutions must deliver a secure experience that aligns with customer expectations while considering economic factors and societal needs. This is why it is essential to comprehend the severity of the risk factors that influence the protection of customers in the realm of digitalized banking services and products. In this study, five factors have been identified that influence customer protection when using digital financial services in Pakistan. Based on the analysis conducted using SmartPLS, it appears that all the factors proposed in this study have a significant and positive impact on the protection of customers. In particular, the information provided remains of paramount importance when it comes to determining the level of protection that a customer is entitled to within digital financial services, followed by responsiveness, privacy, authentication, and encryption mechanisms. Due to these findings, the implementation of enhanced information security management principles becomes imperative for the development and progress of the Pakistani digital banking industry.
Keywords
Auxiliary Innovation; Digital Banking Customers; Digital Risk; Financial Inclusion
Subject
Business, Economics and Management, Finance
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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