Challenges in Fintech Adoption among Members of Farmer Producer Organisations – An Analysis

Abstract

Aim: The purpose of this study is to determine the personal, technological, and trust-related barriers that prevent farmers in Tamil Nadu from adopting fintech. The research aims to provide insights for enhancing the utilization of fintech in the agricultural sector by analyzing these obstacles. Study Design: The limitations that limit farmers' use of fintech were investigated using an ex-post facto research design. Place and Duration of Study: From March to July 2023, the research was carried out in the Tiruvallur district of Tamil Nadu, India. Due to its high concentration of banking establishments, this area was chosen for fintech adoption research. Methodology: From four Farmer Producer Organizations (FPOs) affiliated with Krishi Vigyan Kendra (KVK), Tiruvallur, 120 farmers, 86 men and 34 women, aged 18 to 75, were chosen at random. A structured interview schedule was used to collect the data, which were divided into personal, technological, and trust-related constraints. The farmers' perspectives were used to evaluate the severity of these constraints using the Garrett ranking method. Results: Personal constraints, such as risk aversion (average score = 65.14) and a preference for cash transactions (average score = 56.68), were found to be the most significant obstacles to the adoption of fintech. Usage was further hampered by technological issues such as restricted access to technical support (64.79) and complicated user interfaces (52.95). Concerns about trust, particularly concerns about scams and fraud (65.83), were the most significant obstacles, highlighting the need for robust security measures. Conclusion: The results emphasize the need for targeted interventions to remove the major obstacles to the adoption of fintech, particularly by improving user-friendly designs, technical support, and security measures.