ComFin Research

Digital Trust and AI-Driven Insurance Services: Their Impact on Policyholder Perception and Adoption in Tamil Nadu

C. Kasthuri — 2026-10-01

The adoption of artificial intelligence (AI) is transforming the insurance industry. Given the growing digitalization of the market in emerging economies such as India, understanding how consumers perceive and are likely to adopt insurance services provided through AI-driven channels is critical for insurance providers and technology vendors. This study focuses on Tamil Nadu, India, and investigates the impact of digital trust and various attributes of AI-driven insurance services on policyholder perception and adoption intention. This study incorporates factors such as algorithmic transparency, digital trust, AI service quality, perceived usefulness, perceived risk, social influence, and policyholder perception into an integrated framework to understand the concept of adoption intention. This study utilized a cross-sectional research design, in which a questionnaire survey of 628 respondents was conducted. The results obtained from applying Structural Equation Modeling (SEM) with the help of the AMOS software revealed that the measurement model obtained was adequate, exhibiting high reliability, convergent validity, and discriminant validity. However, the structural model did not follow the conventional path of technology adoption, as the hypothesized relationships between digital trust, perceived usefulness, perceived risk, social influence, and adoption intention were found to be statistically insignificant. These results suggest the emergence of a ‘post-adoption behavioral paradigm’, whereby digital trust is perceived as a natural expectation, risks are normalized, and individuals display increased individualization in their technology adoption decisions. Most importantly, the relationship between policyholder perception and adoption intention was found to be weak. The study offers new insights through its emerging market-based perspective and helps further knowledge about AI-based insurance adoption by suggesting a move towards experience-oriented and nonlinear theories. Further research must explore the threshold of trust, the process of risk normalization, the role of digital literacy and past experience, and behavioral change among policyholders to create future-generation AI adoption models for digital finance.

Leather MSMEs for Make in India Impact in Tamil Nadu

R. Parkavi — 2026-10-01

Purpose: To assess the contribution of the Make in India schemes on the growth performance and effectiveness of institutional support, scheme outreach, and contribution to enterprise competitiveness and sustainable growth for MSMEs registered under Udyam in leather and footwear clusters in Tamil Nadu with regard to awareness about Make in India schemes, accessibility, impact on sales, job creation, production, technology adaptation, and market expansion.
Design, Methodology/Approach: Primary data were collected from 150 leather and footwear industry units in Vellore, Ambur, Vaniyambadi, Ranipet, and Chennai through a structured questionnaire. The EFA resulted in three factors, and the SEM (DWLS estimator in Jamovi/Lavaan) examined the relationship between these factors. Reliability testing was conducted using Cronbach’s alpha, and construct validity was assessed using the KMO and Bartlett’s tests.
Findings: The three that EFA identified have were Awareness of Government Schemes (45.18% variance), Scheme Reach and Accessibility (15.99%), and MSME Growth Performance (0.42%). However, SEM showed that awareness had a significant positive influence on scheme reach (β = 1.052, p < .001), but the direct effects on performance were not significant. The model demonstrated a good fit (CFI = 1.000, RMSEA = 0.063, SRMR = 0.061).
Practical Implication: The results indicate the need to increase government scheme awareness and access among MSMEs for policymakers. Some of the major problems are the health risks to workers and the inadequate implementation of environmental measures in tanneries. If implemented properly, the Union Budget 2025–26 Footwear and Leather Scheme can be a great opportunity for growth.
Originality/Value: This study is one of the first to consider the impact of the Make in India scheme on Udyam-registered leather and footwear MSMEs using CFA-SEM with the DWLS estimation method, which includes enterprise performance, worker welfare, and environmental dimensions.
Future Research: Policy integration of worker welfare and environmental compliance interventions in Make in India and Union Budget 2025-26 for the footwear and leather industry should be strengthened.

Financial Literacy, Digital Literacy, and Financial Well-Being in the FinTech Era: The Mediating Roles of Behavioural Intention and Financial Self-Efficacy

P. C. Libeesh — 2026-10-01

The rapid development of financial technology (FinTech) has transformed how people manage their money, making digital and financial skills crucial for achieving financial well-being (FW). With behavioral intention and financial self-efficacy acting as sequential mediators, this study investigated the impact of financial and digital literacy on the attainment of financial well-being (FWB). A total of 325 respondents provided primary data via a structured questionnaire as part of a quantitative research design. PLS-SEM was used to test the proposed model. All constructs in the model satisfied the requirements for Cronbach’s Alpha, Average Variance Extracted (AVE), Composite Reliability, discriminant validity, and multicollinearity. The results showed that behavioral intention is significantly and positively influenced by both financial and digital literacy. Behavioral intention was found to have a significant positive impact on financial self-efficacy, which was the best indicator of achieving financial well-being. The results show that by boosting people’s confidence in managing their finances and their intention to use digital financial services, financial and digital knowledge indirectly supports the achievement of financial goals. By incorporating behavioral intention, financial self-efficacy, digital and financial literacy into a comprehensive framework for understanding financial well-being in the FinTech era, this study contributes to the growing body of research on financial behavior. The findings have practical implications for legislators, educators, financial institutions, and FinTech service providers to create financial education and digital capability programs that encourage responsible FinTech adoption and improve people’s financial outcomes. The study considered only a few variables influencing financial well-being; it provides scope for further study by incorporating other variables and a different population.

Impact of GST on the Economic Growth of North Karnataka - A Study

Mohammed Imran Kazi — 2026-10-01

The introduction of the Goods and Services Tax in India on July 1, 2017, was a landmark step in the history of India’s indirect taxation. The GST integrated previously fragmented indirect taxes: entering tax, service tax, excise duty, and value-added tax, which reduced tax cascading, improved transparency, and assisted the economy in growing. This study assesses the effects of the Services Tax on the economy of North Karnataka, specifically the area of electrical goods and services in Hubballi-Dharwad, Belagavi, Kalaburagi, Ballari, Vijayapura, and Bidar. The primary data for this study were obtained from 50 members of the community from the fields of electrical goods and services, retail, and wholesale, as well as end consumers of electrical goods and services. The data collected states that 76% of the respondents agreed that GST had improved transparency, and 56% of the respondents reported increased sales. Secondary data for this study were obtained from published journals and articles, as well as government reports and publications from the GST Council. Percentage Analysis and Chi-Square Test were some of the statistical methods used in this study. The study shows that GST created some beneficial changes, such as transparency in business, interstate trade, North Karnataka tax compliance, and North Karnataka’s revenue. Small traders faced challenges such as the cost of compliance, the need to file compliance digitally, and the need for more working capital. The electrical products sector experienced some growth due to the same tax rates and the benefits of input tax credits. The research shows that the GST has improved the integration of markets in the region and formalized the economy. In semi-urban areas, small businesses need continuous awareness and easy compliance. The research also states that the GST has improved tax systems and the way business is done, which has created everlasting positive changes to the economy of North Karnataka, especially in the electrical products market. Future research can examine the long-term impact of GST on employment, investment, industrial development, MSMEs, and economic growth sector-wise throughout North-Karnataka. Comparative studies among districts and states may help identify regional differences. Further studies can also cover data regarding GST compliance, digitalization, revenue mobilization, and the effects of GST rate changes on the North Karnataka population.