Factors Affecting the Intention to Use Financial Technology among Vietnamese Youth: Research in the Time of COVID-19 and Beyond

Nguyen Vinh Khuong,Tran Hung Son,Nguyen Thanh Liem,Cao Thi Mien Thuy,Nguyen Thi Thanh Phuong

doi:10.3390/economies10030057

Abstract

This study focuses on understanding the factors that affect the intention of using financial technology among young Vietnamese in the context of the COVID-19 pandemic. Fintech studies are abundant in developed countries and mainly focus on consumers’ conditions, awareness, habits, and capital. These are expected to differ significantly from the situation in developing countries. We have reviewed factors that can affect the user’s intention, including the Perceived Benefit (PB), Perceived Risk (PR), Belief (B), and Social Influence (SI), and rely on the Technology Acceptance Model (TAM) and the Theory of Reasoned Action (TRA) model in this research. The survey sample comprises 161 Z-generation consumers with strong flexibility and knowledge about the use of Fintech. We use the PLS-SEM (partial least squares structural equation modeling) analysis method with the SmartPLS software (SmartPLS GmbH, Oststeinbek, Germany) to evaluate the research model. We find that the Perceived Benefit (PB) has the most significant impact on the intention to use Fintech, followed by Belief (B). However, in general, the factors are not significant, perhaps due to many reasons that are intrinsic in Vietnam. Based on this result, service providers, policymakers, and researchers can calibrate the development and research for the following stages. We offer findings different from the previous research, thus especially extending the literature on young people.

Highlights

Introduction published maps and institutional affilFinancial technology (Fintech) is a term that has been present since the 1990s
This study strengthened the theory of the Technology Acceptance Model (TAM) model and previous studies
To improve the likelihood of using Fintech services in personal customer payments, credit institutions need to improve the quality of service by continuously innovating, making the service convenient and comfortable for users

Summary

Introduction

Financial technology (Fintech) is a term that has been present since the 1990s. In recent years, this term has been increasingly popular because of the robust development of Fintech across the globe. Fintech is expected to provide new added value and services at a lower cost than traditional technology. Loo believes that if they are freely competitive, Fintech can increase consumer benefits and lower the probability of a financial crisis (Van Loo 2018). The number of Fintech companies has increased rapidly in the Vietnamese market and plays a more critical role in the COVID-19 pandemic that hinders traditional financial activities. The users’ habit of using traditional financial services is gradually changing as the number of Fintech users is growing, especially with the rise in the number of young users

Methods

Results

Discussion

Conclusion