Adoption Of FinTech Research Articles

The Role of Fintech in Increasing Retail Participation in the Indian Stock Market

The rapid growth of financial technology (fintech) has brought substantial changes to retail investor activity in the Indian stock market. This study examines how fintech developments have boosted retail participation from 2017 to 2024, primarily through mobile trading platforms, robo-advisors, and digital payment solutions. Using a quantitative research method with secondary data, the study tracks the year-over-year increase in retail shareholders, noting a significant rise particularly after 2021. The findings point to factors such as the Digital India initiative, growing adoption of fintech, and evolving market conditions as key drivers that have reduced entry barriers for retail investors. The analysis establishes a connection between the advancement of fintech and improved access to the stock market, underlining fintech's significant contribution to democratizing investment opportunities. Nonetheless, ongoing issues like regulatory challenges and financial literacy gaps remain, highlighting the need for continued efforts to maximize fintech's potential in fostering sustainable growth in retail investment.

How Fintech Adoption, Digital Payment Systems, and Consumer Trust Shape Financial Performance of MSMEs

This study investigates the impact of fintech adoption, digital payment systems, and consumer trust on the financial performance of micro, small, and medium enterprises (MSMEs). Using data from 400 MSMEs, the research employs multiple regression analysis to explore the relationships between these factors. The results reveal that fintech adoption has the strongest positive influence on financial performance, followed by digital payment systems and consumer trust. Additionally, consumer trust moderates the relationship between digital payment systems and financial performance, highlighting the importance of customer confidence in driving business success. These findings emphasize the need for MSMEs to embrace digital financial solutions and build trust with their customers to improve their financial outcomes. The study provides practical implications for MSME owners, policymakers, and industry leaders, encouraging the adoption of fintech and digital payment systems as crucial tools for achieving competitive advantage and financial sustainability.

A Study on Digital Natives' Adoption of Fintech: Perspectives from Generations Y and Z

A Study on Digital Natives' Adoption of Fintech: Perspectives from Generations Y and Z

Trust in Government, Electronic Taxation, and the Adoption of Fintech

Mobile money (MoMo) services have become an integral part of the banking system in developing countries. Research is needed to understand the implications of taxing this financial technology sector and inform public policy. The current MoMo tax literature is limited by its focus on personal factors while neglecting institutional factors. The present study develops an integrated model of individuals’ attitudes toward MoMo tax payments and their intentions to use MoMo services while paying related MoMo taxes. To test the model, we analyze survey data collected from 892 participants across 16 regions of Ghana using structural equation modeling. Our findings indicate that perceived trust in government and perceived tax burden are significant determinants of attitudes toward MoMo tax payment, while perceived tax burden is influenced by perceived trust in government. Similarly, perceived tax burden mediates the effect of perceived trust in government on attitudes toward MoMo tax payments. Furthermore, the perceived usefulness of MoMo services is determined by perceived ease of use of MoMo services, whereas MoMo services use/tax payment intentions are determined by perceived trust in government, attitudes toward MoMo tax payments, and perceived usefulness of MoMo services. Finally, perceived usefulness of MoMo services mediates the effects of perceived ease of use on MoMo services and MoMo service use/tax payment intentions. We discuss explanations for these findings and provide practical, theoretical, and research implications.

Determining factors in the adoption of fintech of sharia in Indonesia: analysis of the effect of utaut2, Es-qual, and religiosity

This research examines the antecedents of actional desires towards using Islamic financial application among Indonesian customers. The objectives of the study empirically tested the expanded unified theory of acceptance and use of application (UTAUT2), ES-QUAL and religiosity as independent variables to explain the adoption of Islamic financial application in Indonesia. The method was quantitative. The 200 data are analyzed using the Partial least squares (PLS). The research results show that Effort Expectancy (EE), Social Influence (SI), Hedonic Motivation (HM), Esqual (ESQ), and Religiosity (RE) have a positive effect on Desire to Use Islamic Financial Application (IB). Furthermore, the Desire to Use Islamic Financial Application (IB) positively affects the Use Action of Islamic Financial Application (UB). In addition, only gender (GE) can weaken the influence of hedonic motivation and habit on the Desire to Use Islamic financial application. The influence actional desires to use Islamic financial application because of the lack of research in this domain in Indonesia, especially considering the context of religiosity and combining the concepts of UTAUT2 and ESQUAL. This research contributes to the service quality literature by identifying E-SQ and confirming its effectiveness in FinTech adoption. This can also enhance to the development of understanding financial concepts.

Effect of Fintech on Sustainable Development Goals: An Empirical Analysis

Abstract This paper empirically examines the impact of financial technology (FinTech) and financial inclusion on sustainable development goals (SDGs). The adoption of FinTech has a significant positive effect on key SDGs in developing nations. Specifically, FinTech contributes to reducing income inequality and poverty, while promoting gender equality, access to basic sanitation, clean energy, and education. Additionally, the increasing adoption of FinTech is linked to overall economic growth. To address potential biases from heteroscedasticity and endogeneity, we conduct robustness checks using simultaneous equation modeling and Poisson pseudo-maximum likelihood estimations. Our findings confirm that the benchmark results are robust. JEL Codes: O1, O19, O20, Q01. Keywords: Sustainable Development Goals, SDG, Fintech, Financial Inclusion, Pseudo – Poisson Maximum Likelihood (PPML), Simultaneous Equations Model (SEM).

Uncovering Patterns of Fintech Behavior in Italian Banks: A Multidimensional Statistical Analysis

Fintech is changing the financial system and increasing the possibility of access to financial services. Considering the centrality of the banking world in providing financial services, this study aims to offer an analysis of banks' adoption of Fintech. Exploiting a sample of Italian listed banks, this study investigates their adoption of Fintech. Multiple correspondence analysis and hierarchical clustering classification are used to study Fintech factors in Italian banks, starting from significant variables highlighted by the literature: disclosure, financial investments, and collaborations in Sandboxes. Results show that different bank subgroups have specific Fintech features based on various structural characteristics. The implications are both academic and practical. On the one hand, we highlight how these measures make it possible to have homogeneous clusters. On the other hand, we have indications of policies and best practices.

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

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.

Cluster-based Systematic Literature Review: Understanding FinTech Adoption and Challenges

The FinTech market globally is emerging as an alternative to the traditional cash-driven economy. Although most of the population has adapted to the innovation that has taken place in the financial services sector, a substantial proportion of the population remains unbanked. It has a shallow awareness of the financial products and services available. Banks, financial service providers, investment advisers and business houses are attempting to adopt new technologies in collaboration with FinTech companies. Understanding consumer adoption and their experience of new technologies can help FinTech service providers integrate ideas and deliver seamless offerings. This article employs a systematic literature review of a total of 111 publications from 2016 to 2023 on the consumer adoption/acceptance of FinTech products and services. It identifies seven research clusters from the extant literature to note the trends in adoption and enlist the challenges faced by the usage of FinTech along with emerging trends in attention. The study used VOSviewer to provide the results of keyword analysis, world distribution and linkages of selected publications. The article explored the acceptance and reception of financial innovation in the past eight years as per the identified clusters which was shown by the increase in the number of publication’s chart. It also contributes to the field by mentioning the benefits that have been reaped across industries and sectors with the adoption of FinTech by discussing the participation of authors in various clusters in detail.

The Factor Influencing the Adoption of Fintech in Investment Among Malaysians: A Unified Theory of Acceptance and Use of Technology (UTAUT) Perspectives

Technology has proven to be one of the stronger management and administration platforms for solving all of the conventional problems, including digital financial service management. Besides, it has proven to be the more potent distribution channel, not only for the movement of goods and services but also for digital investment. Nowadays, technology delved deep into the unicorns from the consumer’s Internet segment, which encompasses all business to customers’ Internet and Financial Technology companies. Both have emerged in banking, insurance/takaful, investment, asset management, and foreign exchange, among others, to track their activities in providing financial services. However, investment services also need to be given attention, especially when it comes to human intervention with the use of FinTech. The objective of this paper is to examine the influence of adoption factors for FinTech on investment. The objective will examine FinTech's potential in reducing costs, enhancing human resource efficiency, increasing customer satisfaction, and increasing investment returns. This study is based on the Unified Theory of Acceptance and Use of Technology (UTAUT) framework. This study helps participants in the future of the financial services industry leverage their organizational goals towards a hub of financial and non-financial digital ecosystems as technology advances. The comprehensive development of FinTech is essential to the investment management capabilities of all parties, such as value aggregators, advisors, and competitive access facilitators, in the increasingly challenging field of digital technologies. The combination of effective and systematic investment services could be combined with internal capabilities in FinTech across the investment landscape for external innovations, service providers, and advice facilitators.

Financial Technology (Fintech) and Financial Inclusion: Analyzing the Role of Innovative Technologies in Expanding Access to Financial Services

This study examines the crucial role of Financial Technology (Fintech) in improving financial inclusion, with a specific focus on how innovative technologies are increasing the availability of financial services for marginalised communities. The report commences by providing a clear definition of Fintech and its extent, followed by a summary of financial inclusion, emphasising its importance in promoting economic expansion and mitigating inequality. A thorough literature analysis examines the historical background of financial inclusion, the development of Fintech, and the current study on how they cross. The report explores significant Fintech advancements, including mobile banking, digital payments, blockchain, and AI-driven services. It assesses how these innovations decrease transaction costs, enhance accessibility, and tackle the obstacles encountered by conventional financial institutions. The study additionally evaluates the impact of Fintech in reaching individuals without access to banking services and those with limited access, improving their understanding of financial matters, and providing assistance to microfinance and small enterprises. The report also examines the legislative obstacles, cybersecurity risks, the disparity in digital access, and the difficulties of trust in the adoption of Fintech. Lastly, it examines possibilities for future growth, such as developing technology and cooperative initiatives, and offers suggestions for policymakers and stakeholders to effectively utilise Fintech's potential in promoting financial inclusion.

Adoption of Fintech for Sustainable Administrative Efficiency of Higher Educational Institutions: Bangladesh Perspective

Fintech solutions offer innovative tools and platforms that streamline financial operations, enhance convenience, and improve efficiency. The purpose of this research is to examine the impact of fintech on administrative efficiency among universities in Bangladesh. To fulfil this purpose, this research assesses the current level of fintech adoption among university students in Bangladesh and seeks to gain insights into students’ perceptions and attitudes towards fintech, particularly in relation to its impact on administrative tasks within their respective universities. Finally, this research identifies the challenges and opportunities associated with the integration of fintech in administrative processes and explores potential strategies to address them effectively. This research used both quantitative and qualitative strategies to achieve these goals. A survey was conducted to collect quantitative data from the university students of Bangladesh. Findings show that the adoption and usage of fintech have a statistically significant positive impact on administrative efficiency, resource allocation and utilisation, enhanced communication, and a sustainable and eco-friendly administrative environment.

Banking FinTech and stock market volatility? The BIZUM case

This paper investigates whether and how the adoption of FinTech by incumbent banks affects their stock price volatility. BIZUM, a Spanish FinTech real-time digital payment solution was adopted by incumbent banks in 2016 and therefore provides new evidence of real-world ex-post implementation. The results indicate that the adoption of BIZUM by incumbent banks had a significant effect, reducing their stock price volatility after it was launched. This finding suggests that investors were informed of and acknowledged the advantages of BIZUM, thus, use their adoption of FinTech Start-up strategy to offset adverse market circumstances. This paper provides insights for investors and international institutions regarding the role of the pricing of banking related assets, implications for incumbent banks whose portfolios are exposed to investments in disruptive technology and for banking regulators and authorities vis-à-vis risk related considerations of the adoption by banks of FinTech strategies.

The Impact of Fintech Startups on Financial Institutions’ Performance and Default Risk

Introduction: It is highly important to understand the role of financial technology-based startups in the field of financial support. Thus, the study here aimed to investigate the job of fintech solutions or startups in the performance management of financial institutions and the process they use to mitigate risk in financial matters. Literature Review: The economic contraction was most likely the cause of the decline in the value of investments. Understanding the importance of operational efficiency, traditional financial institutions have embraced technology advancements to automate repetitive tasks, lower errors, and save costs. As a result, overall performance and cost-effectiveness have increased. Methodology: The method of data collection that has been selected to investigate the roles that fintech startups play in reducing financial risk is "primary quantitative." As a result, answers to a questionnaire consisting of 13 questions were gathered from 55 people. Findings and analysis: The statistical analysis revealed that the majority of responses were either in agreement or strongly in agreement. Given that the Pearson Correlation value is greater than 0.8, there is a strong correlation between each variable. Every hypothesis formulated during the initial stage of the study has been approved. Discussion: Fintech, which is a combination of finance and technology, uses cutting-edge methods and instruments to improve the overall effectiveness and resilience of risk management frameworks. However, fintech startups face a variety of obstacles along the way, but they are also presented with opportunities for innovation and growth on their optimization journey Conclusion: The adoption of fintech by financial institutions is expected to create a dynamic risk management landscape that can adjust to new opportunities and challenges in the constantly changing financial sector. The primary quantitative method was selected in order to collect the pertinent data for this investigation. Through statistical analysis, the gathering of quantitative data can assist in projecting real-time information.

Perceived Trust and Its Antecedents’ Impact on Intentions to Use Fintech; Evidence from Pakistan

The Study examines the impact of perceived trust and its antecedents on the intentions of individuals to use fintech services in Pakistan. By identifying the primary factors that influence these intentions, the research offers fintech service providers and policymakers valuable insights into the adoption and utilization of fintech in the Region. This information is indispensable for the successful marketing of these services. The research centers on four primary constructs: perceived risk, perceived usefulness, perceived convenience of use, and perceived trust. The Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT) are employed as theoretical frameworks. Perceived risk refers to the potential negative consequences of fintech usage, perceived usefulness evaluates the enhancement of financial activities through fintech, perceived ease of use measures the simplicity of utilizing fintech services, and perceived trust evaluates the reliability and competence of the fintech provider. A convenience sampling method was employed to recruit 400 participants aged 18 and older who have either used or are willing to use fintech services from the major cities in Pakistan. According to data analysis conducted with PLS software, the intention to utilize fintech services is significantly influenced by perceived usefulness, perceived simplicity of use, and perceived trust. Hence, there is no significant impact on perceived risk. Cronbach’s alpha if less than. 6 or greater than. 8 is not considered good; while the acceptable limit for CR and AVE lies between. 7 and 9. This paper aims to explain the overall understanding of Pakistan’s fintech adoption and hereby stresses the significance of the perceived trust and perceived usefulness in the context of the given phenomenon.

Mixed-methods approach to investigating the diffusion of FinTech services: enriching the applicability of TOE and UTAUT models

PurposeThe rapid global use of Financial Technology (FinTech), an innovative and advanced technology, is leading to the replacement of traditional financial services. Despite this, consumers in the United Arab Emirates are still not accepting FinTech services as anticipated. This study aims to investigate the barriers preventing consumers from using FinTech services in the banking industry based on the technology-organisation-environment (TOE) framework and anchored by the unified theory of acceptance and use of technology (UTAUT).Design/methodology/approachThe current study used an exploratory sequential mixed-method design. A purposive sample was used to conduct preliminary semi-structured interviews with ten banking practitioners. These interviews aimed to explore the obstacles that hinder consumers from adopting FinTech services. To provide further empirical validation, the conceptual model has been systematically examined through a quantitative cross-sectional online survey encompassing a sample of 332 bank customers.FindingsThe qualitative investigation highlighted six new barriers to the usage of FinTech based on TOE’s model attributes. Through quantitative data analysis, the preliminary qualitative findings were primarily verified. It was discovered that self-efficacy, electronic word-of-mouth, system quality and bank image substantially influence consumers to use FinTech services, in addition to performance expectancy and facilitating conditions. Meanwhile, IT features and governmental support were found to have insignificant effects. Yet, government support was found to have a positive moderating role in strengthening social influence and system quality towards customer use of FinTech. Thus, the research supports the UTAUT and TOE models’ fitness for explaining FinTech usage with high predictive relevance.Originality/valueThis study is the authors’ pioneering effort to propose a comprehensive research framework that integrates the UTAUT and TOE models to tackle the limited adoption of FinTech services among consumers. Moreover, the study specifically examined the moderating influence of government support to propose an integrated model. Remarkably, this study is one of the initial attempts to investigate the adoption of FinTech using a mixed-methodology approach by incorporating quantitative and qualitative methods within a single inquiry to yield more comprehensive and insightful findings than research that relies on a single method.

Fintech Acceptance Among MSMEs: A Post-Covid 19 Response

The primary objective of this research is to assess the determinants influencing the adoption of Fintech among MSMEs in Medan City, focusing on MSMEs following the post-pandemic period. This study used an online survey among 156 MSMEs in Medan City. This research uses the Structural Equation Modeling - Partial Least Square (SEM-PLS) approach to analyze the conceptual model, utilizing the SmartPLS version 3 analysis tool. The study's results found that perceived ease of use and subjective norms influence the perceived usefulness of Medan City MSME actors in using Fintech. Overall, the results of this study indicate that perceived ease of use, perceived usefulness, subjective norms, and feeling of safety have a positive and significant effect on the usage of Fintech among MSME actors in Medan City. The results of this study also provide practical implications for using Fintech for MSMEs in Medan City in the new normal era (after the COVID-19 pandemic).

FACTORS AFFECTING ADOPTION OF FINTECH IN NEPAL

Fintech is the rapidly growing sector has had a profound impact on the global world, transforming various aspects of financial services and shaping the way people manage their money and engage in financial transactions. According to (Thakor, 2020) “FinTech is the use of technology to provide new and improved financial services by leveraging cutting-edge technologies to offer innovative, efficient, and user-centric solutions”. It's important to note that the FinTech landscape is constantly evolving, so there may have been further developments since then. The Technology Acceptance Model (TAM) and Unified Theory of Acceptance and Use of Technology (UTAUT) is utilized to analyze the degree that perceived usefulness, perceived ease of use, perceived risk, policy measures and the demographic profile has kinds of impact on the adoption of Fintech in Nepal. The total of 65 questionnaire sample was collected as verified samples for analysis. It was found that 3 factors had a significant positive relationship with the adoption except perceived risk which showed negative relationship. Nevertheless, male respondents were reported to have higher intention as compared to female respondents. Keywords: Fintech, TAM, UTAUT, Innovation

Determinants of Islamic fintech adoption: a systematic literature review

Purpose Sharia-compliant financial technologies (Islamic fintech) are becoming increasingly popular among Muslims and non-Muslims. As the Islamic fintech landscape continues to grow and transform, it is crucial to understand the factors that influence the acceptance or adoption of Islamic fintech services from the past literature. Therefore, this paper aims to conduct a systematic literature review (SLR) to investigate and compile factors that could influence a user to adopt Islamic fintech. Design/methodology/approach The current study adopted the systematic literature review approach using Preferred Reporting Items for Systematic Reviews and Meta-Analyses technique to examine research on Islamic fintech adoption. A set of inclusion criteria was applied to filter out irrelevant documents and ensure the selection of only the most relevant ones. The criteria were limited to quantitative journals published in English between 2012 and 2022, as identified in Scopus outlets. Findings Despite the existence of various theoretical frameworks, the technology acceptance model and Unified Theory of Acceptance and Use of Technology 2 frameworks have gained prominence as the most frequently applied frameworks in examining Islamic fintech adoption. In addition, trust is the most important self-developed construct for the adoption of Islamic Fintech. Research limitations/implications The current study does not segregate the intention, actual usage and retention, as the author is interested in understanding the overall adoption of Islamic fintech services. To obtain more specific analysis results, future research could potentially separate the three types of adoption exposure, i.e., consumer acceptance, intention and retention. Next, future studies can also expand their analysis and gain a better understanding of the research topic by exploring alternative data sources such as Web of Science, ERA or JSTOR. Originality/value To the best of the author’s knowledge, this study makes a significant contribution to the literature by providing the first systematic literature review of factors influencing fintech adoption from an Islamic perspective.

The moderating role of information technology infrastructure in the relationship between fintech adoption and organizational competitiveness

The rapid advancement and adoption of fintech have significantly influenced the banking sector worldwide. This study aims to investigate the moderating effect of information technology infrastructure on the link between fintech adoption and organizational competitiveness in Jordanian commercial banks. The study chose a quantitative research methodology to conduct this study, based on a survey of 12 Jordanian commercial banks, chose a quantitative research methodology. The study distributed a structured questionnaire, which was filled out by managerial-level employees at the banks. From the 400 questionnaires distributed to the respondents, 215 returned valid responses, allowing further analysis. The study carried out the data analysis using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results suggested that the adoption of fintech had a significant, positive direct impact on organizational competitiveness (H1: β = 0.409, t = 5.204, p = 0.001). Additionally, the study identified that IT infrastructure significantly moderates the relationships between fintech adoption and organizational competitiveness (H2: β = 0.257, t = 4.102, p = 0.000). This means, indeed, that fintech adoption independently augments the competitiveness of Jordanian commercial banks. Moreover, a solid presence in IT infrastructure further strengthens the positive effect. Such insights are highly valuable for bank managers and policymakers looking to improve organizational performance while incorporating strategic IT investments in the fintech domain.