Impact of Social Media Influencer Credibility on M-Banking Acceptance: The Moderating Role of Financial Literacy

Introduction

The fast-paced changes in the digital realm have revolutionized how people interact with information, decide on purchases, and handle their finances. Social media platforms have gained significant influence, moulding consumer attitudes and actions across different fields (Ullah et al., 2022). In terms of conducting financial transactions, m-banking cannot be considered a tool that has advanced to a degree of worldwide progress and possesses an insufficient rate of adoption and dissemination, especially in developing nations like India. M-banking has eventually revived the core principles of traditional banking and changed customers' perceptions from “nice to have” to “need to have,” especially in India where there is a lot of untapped potential (Tiwari et al., 2021). A notable transformation is occurring in the financial sector, driven by the introduction of mobile banking (M-Banking) services (Mallat et al., 2004). Consequently, there is a growing interest among researchers, marketers, and financial institutions in unraveling the complex relationships between social media influencers, their trustworthiness, and the adoption of M-banking (Khasawneh et al., 2018). Understanding these dynamics has become a central focus in this evolving landscape. Social media influencers, individuals with substantial online sway, play a crucial role in molding public sentiment and consumer decisions (Sharma et al., 2022). Mishra (2014) examined the acceptance of m-commerce in India using behavioural psychology that describe customer behaviour and came to the conclusion that if marketers were to encourage favourable emotions towards m-commerce, overall use of m-banking would undoubtedly rise. Today's brands foster these positive emotions by raising awareness by means of endorsements from influencers and leveraging their reputation, which can establish a close bond with followers driving their behavioural decisions. In every industry, adopting technological advancements like Mobile banking (m-banking) has the potential to provide businesses with a competitive edge. M-banking has emerged as a significant phenomenon compared to conventional banking (Wessels & Drennan, 2010). This area of banking services, is projected to reach 1824.7 million US dollars by 2026 (Allied Market Research, 2020), has experienced significant global growth. By 2023, India's digital transaction volume is anticipated to surpass that of China and the United States (KPMG, 2019). Banks are using a variety of media outlets to promote m-banking to acquire the underserved market of prospective mobile banking consumers. Various media platforms, including print, television, and internet-based media such as social media, are used for the same purpose. Social media is extensively used for m-banking promotion because it incorporates the versatility of individual and mass media (Sahoo & S. Pillai, 2017; Shankar et al., 2020; Tam & Oliveira, 2017; Tran & Corner, 2016). Social media influencer marketing is a component of marketing plans that use people as the means of disseminating ideas. The persuasion theory states that audiences view paid advertisements from influencers differently from conventional promotional materials and more as helpful advice from someone who they feel connected to (Han et al. 2021). These influencers are anticipated to be competent to provide the most recent news and details about companies and goods. Thus, influencer credibility holds a major impact on consumers' behavior intention (Sesar et al., 2022). In the long run, such an association could have a significant impact on customers' intentions to accept banking services more readily (Walzhofer et al., 2022). In order to measure m-banking acceptance of individuals we use AIDA model which corresponds to Attention, Interest, Desire and Action. It is crucial to note that due to the complexity of financial products, a foundational understanding of economics is necessary. Introducing financial literacy as a pivotal determinant of individuals' grasp of financial concepts and services, we bring it into the equation as a moderating factor. Therefore, an examination of consumers financial understanding is imperative. The capacity to successfully handle financial resources is referred to as financial literacy. The phrase “financial literacy” is defined in a broad variety of ways. These definitions often suggest that people have the capacity to make choices that will assure their financial security. High financial literacy causes noticeable variations in financial behaviour, according to Sayinzoga (2016). It gives a person the capacity to analyse when buying a financial product and enables him to ignore useless information. From a theoretical standpoint, the authors follow Kiliyanni and Sivaraman (2016) who have proposed four areas of interest as an approach for assessing financial literacy: savings and investment, money management, risk management, and basic knowledge. Based on previous literature, the higher the level of financial literacy of an investor the more easily will be mobile banking be accepted if they perceive the influencer credible. Thus, financial literacy will be studied as a moderating variable between the link between social media influencer credibility and m-banking acceptance.