Digital Banking and Deposit: Substitution Effect of Mobile Applications on Web Services

Digital banking services are becoming more important components of contemporary financial ecosystems, heralding a revolutionary change in the banking and financial industry ushered in by the rise of digital technology. The "Substitution Effect" of mobile apps on web-based services in digital banking and deposits is investigated. We use a quantitative and qualitative approach to examine the complex dynamics of user preferences, technical progress, and security concerns that influence this replacement occurrence.We found that demographics, technical progress, and security concerns all play a role in influencing customers' digital banking choices. Increases in both the availability and sophistication of mobile technology have contributed to the widespread acceptance of these apps among the young, the well-educated, and the well-off. However, increased security concerns pose a significant obstacle.The banking sector, governments, and consumers may all benefit greatly from these findings. Financial institutions are under pressure to diversify their services to appeal to a wider range of customers, make strategic investments in cutting-edge technologies, and implement rigorous security protocols. To stimulate innovation and safeguard consumers, policymakers should provide flexible regulatory frameworks. An improved user experience, more convenience, and a heightened knowledge of digital banking security are all positive developments for consumers.Our findings are more than just a theoretical delve; they are a practical resource for stakeholders in the evolving digital banking sector. It offers insights that can be put into practice, paving the way for a more secure, innovative, and customer-focused future in digital banking.