Abstract
The popularization of FinTechs has sparked new competition for banks as FinTechs are said to be more convenient, efficient and faster unlike bureaucratic requirements of financial institutions such as banks. The aim of this study was to assess the factors leading to adoption of FinTech financial services and how this affects traditional banking in Zambia. The objectives of the study were to evaluate factors influencing the adoption of FinTech financial services and to develop strategies that can help banks to remain relevant and competitive. The study adopted a quantitative research approach to collect data through self-administered questionnaires. The sample size was arrived at using the Cochran formula. The respondents were selected based on a convenient sampling technique which is a non-probability sampling method. The study adopted the diffusion of innovation theory whose variables were used to come up with hypotheses. The data collected through the questionnaires was analyzed using Pearson Correlation and the SPSS software. Results indicated a strong positive correlation of 0.450 between relative advantage and adoption. Further, the study shows that there is a strong positive correlation of 0.621 between Compatibility and Adoption. The study proposes a revised model that shows factors affecting adoption of an innovation that might help banks.
Highlights
Demographic Characteristics The sample size represented 74% male with the remaining 26% being female (Figure 2). 57% of the respondents were between the age group of 21 - 30, 20% were between the age of 31 - while respondents between the age of - 50 and 51 - 60 were both at 3% respectively. 79% owned a bank account while 21% did not own bank accounts
Relative advantage and Adoption The study showed that there is a significant relationship between Relative Advantage and Adoption as the p-value of 0.000 is less than the significant level of 0.01
Trialability and Adoption A further analysis on Trial Ability showed that there is a significant relationship between Trial Ability and adoption as the p-value of 0.000 is less than the significant level of 0.01
Summary
The provision of banking services has for a long time been led by commercial banks that are licensed by Central Banks. The role of commercial banks among others, is to facilitate the establishment of a financial system through which demand and supply of currency are done. Banks would for a long time be the channel through which payments would be facilitated and remained the common mode for savings, sending and receiving money. The growing trend towards the need for fast and efficient payment solutions for most people globally has led to the popularization of digital mobile payment platforms leveraging technology (Flejterski & Labun, 2016). Away from the long list of requirements for opening a bank account such as valid identification, letter of reference, proof of residence, passport sized photo is an emerging demand for mobile money services that are providing financial solutions for people worldwide
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