CONSUMER PERCEPTION AND ADOPTION OF DIGITAL LENDING FINTECH APPS IN INDIA

Abstract

The Indian financial landscape is amid a paradigm change, with the sudden spread of fintech lending apps for digital lending. The fintech lending apps, built on mobile, data, and user experience technologies, have redefined the consumer experience of credit consumption in a new, unprecedented manner. The study seeks to examine consumer awareness and acceptance of fintech digital lending apps in India, with a focus on the major drivers of trust, service quality, ease, data security, and regulatory awareness. The study utilises a descriptive study design on primary data collected through guided questionnaires from 106 respondents across different demographic groups. The results show that knowledge of digital lending apps is extremely age-dependent with young consumers reporting greater familiarity. Use of the platforms, however, is not restricted to any particular demographic group, which is an indication that digital lending has leveled the credit access playing field by age, gender, occupation, and income groups. Trust and value perceived are the drivers that matter the most while adopting. Trust in digital lending apps is given high ratings by nearly half the users, and the satisfaction scores are predominantly in the moderate-to-positive range. The convenience of facilitating the application process, instant sanction, and being able to manage emergency financial needs are the predominant reasons for turning to these websites. LazyPay and Cred are the first preferences among the users, reflecting the high brand recall and perceived trust associated with these apps. Despite the convenience and ease being provided by internet lending fintech apps, there are still some obstacles. Unexpected charges and data privacy issues are the most consumers' grievances, and more than half of the consumers are worried about the safety of their data and the clarity of the loan terms. Non-consumers mostly avoid them because of no need for credit, aversion to visiting conventional banks, and doubts about the web portals. Regulation by the Reserve Bank of India (RBI) and reduced interest charges are being considered as the strongest drivers that would make risk- averse consumers use them more. The study reveals that demographic characteristics such as gender, occupation, and income have a minimal impact on the usage, along with the willingness to use online lending apps. Consumer behaviour depends on direct experience, risk aversion, as well as subjective value of online credit products. The study makes a demand for efficient vi regulatory schemes, open disclosure, and good consumer education that can mitigate data abuse fears, coercive loan recovery, as well as obfuscation on loan terms. Recommendations to stakeholders include increasing transparency and disclosure, improving data privacy and security controls, encouraging ethical lending practices, and investing in financial literacy programs. Fintech players can be encouraged to use technology to facilitate more personalisation and inclusion, and regulators must ensure rigorous enforcement of digital lending regulations and encourage industry cooperation. Briefly, mobile lending fintech apps are fueling financial inclusion and innovation in India by increasing access to credit and convenience for a big consumer base. The long-term sustainability of the growth, however, depends on the ability of the industry to establish and sustain consumer trust, transparency, and responses to changing regulatory requirements. Through all these challenges, stakeholders can develop a secure, transparent, and consumer-friendly digital lending ecosystem that fosters the financial health of Indian consumers.