Does Economics Push for an Innovative Idea in Human Society – A Case Study of VI as a Proposed Product in Digital Banking Services: Looking Through Consumer Choice Theory Lens?

Abstract

In today’s world, it is widely accepted that the economics of digital banking services are vital & meaningful in economy of a country. However, digital-banking services are characterized by evolving many factors that are often unpredictable. It faces serious pitfalls being riskiness when it comes to choices digital banking, particularly bank-led digital banking services. In this busy world, most customers do not read terms & conditions of digital-banking services, and they do not even save contract copy(s) in general. These weaknesses cause abuse(s) in manifolds. On the other hand, by choosing digital-banking services, customers compete for time-saving options and banks compete driving higher profits. All these may further expedite abusive activities in digital-banking services in today’s business-drive world. To marginalize the dilemma of bank-led digital transaction-trends, attaching Voluntary Insurance (VI) as a product under Akim’s Model in e-banking services can ensure secure digital-transaction services. However, no economy country-wise has yet introduced VI as a product in bank-led digital services for ensuring absolute risk-free digital services. Since the bank-led digital transactions dilemmas are no new in economy, policymakers’ attentions on the economics of the VI as an innovative idea for adoption can be instrumental. Accordingly, a SWOT analysis for Voluntary Insurance (VI) in digital banking shows the strengths in enhanced customer trust, reduced bank costs, and new revenue streams, leveraging digital convenience. Adding this product and then its increasing economic value will keep banking-businesses growing. It will ensure risk-free bank-led digital services in economy. It is needed for greater interest in economy, society and for ensuring cashless human society soon where policymakers’ prompt effort will serve as a precondition of success.