Voluntary Insurance (VI) for Faster Growth-Trend of Digital-transactions in Bank-led Services: A PESTLE Analysis of Akim’s Model

Abstract

Digital banking, particularly bank-led-digital services, are important in today’s world-economy country-wise. However, this advancement globally faces slow growth-trends where psychological-risk factors discourage a customer or a probable customer from not using it. Concentrating on the issues underpinning the Akim’s model, VI (Voluntary Insurance) can be introduced or adopted as a low cost or fixed price product. It will enhance consumer surplus, bank profits and overall transaction volume. Having VI as a new product can be vital in the journey of ensuring cashless society soon. The growth trend (S-curve) of VI product will capture revenue growth against time. In return, it will ensure higher transaction numbers of e-banking services. Accordingly, the purpose of this study is to revisit conventional wisdom about key contributions or prospects of the VI using PESTLE analysis. Here VI can serve as a strategic, trust-enhancing product designed to mitigate perceived psychological risks (fraud, hacking, etc.) in bank-led digital banking services. By embedding VI, banks can transition hesitant users into active digital-consumers by creating a "win-win" that can accelerate the growth trend of number of digital transactions and secure revenue.