Behavioural Intention of Commercial Banks’ Customers towards Financial Technology Services

Abstract

Objective – The objective of this study is to determine the process that takes place in the employment of financial technology in the financial services industry. It is of utmost important that FinTech firms and commercial banks understand the predictors that can influence their consumers’ decision to adopt FinTech services and to increase loyalty toward their services. Methodology/Technique – An online survey was used in the present research to explore factors that can influence commercial bank users’ intention to use FinTech services in Malaysia. The data for the current study was gathered from bank users who aged at least 18 years old and resided in Malacca, Malaysia who accessed FinTech services via smartphone. This research also employed the convenient sampling in distributing online questionnaires to 400 respondents who had successfully completed and returned the questionnaires. Findings – The empirical findings illustrate that trust, social influence, cyber-security risks and privacy risks are the most influential determinants that affect bank customers’ behavioural intention to use FinTech services in Malaysia. Novelty – This research contributes to the theory of TAM, UTAUT and TPB by proposing a direct effect of trust, social influence, cyber-security risks and privacy risks on the adoption of FinTech services. The findings of the current study will be beneficial to policymakers, specifically financial institutions and FinTech firms as they will be informed on workable means to increase the quality of FinTech applications/websites. This can yield greater intentions to adopt FinTech. Stakeholders should play their important role in noticing and considering the influential factors that can impact the consumers’ behavioural intention for using technologies in their policies to fulfil the users’ needs. Type of Paper: Empirical JEL Classification: G02, G21 Keywords: Trust; Social Influence; Cyber-Security Risks; Privacy Risks; Behavioural Intention to Use Reference to this paper should be made as follows: Peong, K.K; Peong, K.P; Tan K.Y. (2021). Behavioural Intention of Commercial Banks’ Customers towards Financial Technology Services, Journal of Finance and Banking Review, 5(4): 10 – 27. https://doi.org/10.35609/jfbr.2021.5.4(2)