Fintech applications in social welfare schemes during Covid times: An extension of the classic TAM model in India

Abstract

AbstractIn terms of remote banking services for social welfare programmes, fintech has completely changed the game for financial institutions, particularly during the COVID pandemic. However, many recipients continue to be dubious due to fears about its security. This study aims to create an extended technology acceptance model (TAM) that incorporates perceived risk, trust and innovation diffusion theory into the conventional TAM model to understand better the variables that influence user adoption and implementation of Fintech technologies. The critical FinTech applications were evaluated using the hypothetical classic model, which included external influences. The proposed model (urban poor beneficiaries‐TAM) was experimentally verified using semi‐structured questionnaires and structural equation modelling data. This research shows that attitude has a considerable impact on how fintech apps are meant to be used, outweighing usefulness and risk as factors that directly affect how they are used. The report concludes by discussing the critical organizational consequences and offering a variety of strategies for maintaining this recently innovative business in light of current technological improvements.