Financial Technology Adoption Research Articles

Pandemic-Era Trends in US Automatic Payment Adoption: A 2022 Behavioral Analysis

Introduction: This study analyses the adoption trends of automated payment methods among different racial groups in the United States during the COVID-19 pandemic in 2022. It investigates the correlations among financial literacy, risk attitudes, customer sentiment, and the adoption of automated payment mechanisms for bill settlements. Method: An analysis of responses from a diverse demographic is conducted using logistic regression on data from the 2022 Survey of Consumer Finance. This analysis investigates the trends associated with subjective and objective financial literacy, consumer sentiment as evaluated by economic perceptions, and risk attitudes among several generations, taking into account race as well. Results: Initial results suggest disparities in the degrees to which financial literacy, risk attitudes, and consumer sentiment are connected with adoption rates among various racial groups. The statistical analysis highlights disparities in the adoption of automated payments among different racial and ethnic groups. Discussion: The findings underscore the complex interplay among socio-economic status, behavioral variables, and technology adoption in the period after the pandemic. This methodology aligns with current scholarly works on behavioral finance, which emphasize the need to consider both individual psychological aspects and wider social impacts in the process of making financial decisions. By incorporating racial diversity into the research, the study provides a valuable understanding of how cultural and demographic factors interact with behavioral aspects in the particular setting of financial technology adoption during a time of substantial economic transformation.

Financial Technology Adoption: Network Externalities of Cashless Payments in Mexico

Do coordination failures constrain financial technology adoption? Exploiting the Mexican government’s rollout of 1 million debit cards to poor households from 2009 to 2012, I examine responses on both sides of the market and find important spillovers and distributional impacts. On the supply side, small retail firms adopted point-of-sale terminals to accept card payments. On the demand side, this led to a 21 percent increase in other consumers’ card adoption. The supply-side technology adoption response had positive effects on both richer consumers and small retail firms: richer consumers shifted 13 percent of their supermarket consumption to small retailers, whose sales and profits increased. (JEL E42, L25, L81, O14, O33)

The Financial Inclusion Question in Zimbabwe’s Post-COVID -19, New Normal: Implications for Adoption of Financial Technology (FinTech) on Service Providers

Financial inclusion will be accelerated by the technological opportunities for online financial transactions brought forth by the COVID-19 outbreak. As a result, because there were fewer digital financial transactions, the threats to COVID-19 that were present previously are now more substantial. The aim of this article is to assess the dangers, challenges, and opportunities for financial inclusion brought forth by the use of technology by COVID-19. According to the article, the inherent characteristics of financial technology (FinTech) in connection to financial inclusion allow it to reduce the negative economic and social effects of the ongoing COVID-19 situation. Under COVID-19, the introduction of digital financial transactions has sped up corporate operations and cut expense on doing business. As a result, women now have greater access to transactions involving financial technology (FinTech). The growth of digital financial transactions has made contactless and cashless purchases possible throughout the COVID-19 crisis. The expansion of digital financial inclusion makes it easier to swiftly and effectively implement public assistance programs, such as those for epidemic-affected women. Financial inclusion is being boosted by digital finance, which may eventually replace or improve traditional banking institutions. Working from home has undergone a "revolution" in a number of industries during COVID-19, including banking. Businesses should identify the optimal operating model mix for the future and make sure they have the infrastructure to support widespread, mass flexible working. This calls for reevaluating the function and application of corporate real estate. Since the labor force is likely to become more automated at the same time, resilience is essential. Conceptual Framework of this study is based on the financial inclusion and FinTech concepts which are the main variables guiding the study and it is underpinned by the theories of diffusion of innovation and the Financial Intermediation.

Fintech Adoption: Peer-to-Peer Lending for Indonesian Msmes

The objective of this research is to examine the conduct of Micro, Small, and Medium Enterprises (MSMEs) concerning their embrace of financial technology linked to peer-to-peer lending. Employing a survey approach, this research collected data from MSME owners in Indonesia using purposive sampling techniques. Structural Equation Modeling (SEM) was employed to evaluate the impact of dimensions within the Unified Theory of Acceptance and Use of Technology on the preparedness of MSMEs to adopt the FinTech model. The results revealed that each dimension of the Unified Theory of Acceptance and Use of Technology, encompassing performance expectancy, effort expectancy, facilitating conditions, social influence, hedonic motivation, price value, habit, perceived trust, and perceived risk, plays a crucial role in shaping the behavioral intention of MSMEs toward the adoption of financial technology, specifically peer-to-peer lending. Effort expectancy emerged as the primary factor influencing performance expectancy. Moreover, perceived trust exhibits a close correlation with perceived risk, thereby influencing the behavioral intention of MSMEs. However, perceived risk is the only dimension with a negative impact.

Social trust and household financial decision-making: An empirical study based on the usage of household financial technology

This paper utilizes data from the China Household Finance Survey (CHFS) to examine the impact of social trust on household financial decision-making. The results indicate that social trust significantly enhances the adoption of financial technology by households, and this positive effect is further strengthened by an improved understanding of financial knowledge. Additionally, an analysis of regional heterogeneity reveals varying impacts across different areas. It is recommended that policies focus on enhancing social trust and regional education levels to facilitate the use of financial technology and improve decision-making outcomes.

Implementing data-driven financial management systems in SMEs: A case review approach

The adoption of data-driven financial management systems has become increasingly vital for the growth and sustainability of small and medium-sized enterprises (SMEs). This review explores the implementation of such systems through a case review approach, analyzing their impact on financial decision-making, operational efficiency, and overall business performance. SMEs often face challenges in managing their financial processes due to limited resources, inefficient manual methods, and a lack of real-time data insights. Data-driven financial systems, leveraging automation, artificial intelligence (AI), and analytics, offer a solution by streamlining these processes, enhancing accuracy, and improving decision-making. The review examines three SMEs from different sectors manufacturing, retail, and services that have implemented data-driven financial systems. Through qualitative interviews, financial data analysis, and performance assessments before and after system implementation, the research identifies key improvements in cash flow management, profitability, and financial reporting. Each case highlights how automation and real-time data access have led to more strategic financial decisions, reduced costs, and operational efficiency. The findings suggest that data-driven financial systems not only increase financial transparency but also provide a competitive advantage by enabling SMEs to make informed decisions quickly. However, the review also identifies barriers to implementation, such as technical expertise, costs, and employee training, emphasizing the need for tailored solutions based on company size and sector. The review concludes by discussing future trends in financial technology adoption among SMEs and offers recommendations for facilitating successful integration. This research contributes to the understanding of how data-driven financial management can drive sustainable growth in SMEs. Keywords: Data-Driven, Financial Management, SMEs, Review.

Mobile Payment Fintech Service Adoption and Security Concerns

In India, the adoption of financial technology (Fintech) or financial technology innovation (FTI) has expanded due to the development of mobile devices and their use. The need for mobile Fintech payment systems that facilitate online and offline transactions has increased, especially during and after COVID times. However, mobile payment services are still used in limited areas due to concerns over the security of mobile applications for customers and Fintech companies alike. Drawing on the Technology Acceptance Model (TAM), the findings of this paper support the notion that usefulness, ease, user design, information security, and trust impact of mobile payment concerns and adoption factors in the Fintech environment are important variables.

Political perspectives and their impact on fintech mortgage lending adoption

PurposeThe purpose of this paper is to explore the link between political perspectives and the adoption of financial technology (fintech) mortgage lending, a new type of mortgage lending facilitated by online platforms.Design/methodology/approachThe authors use fintech mortgage lending and presidential election data for the United States of America (USA) counties from 2010 to 2017. Employing several analysis techniques including ordinary least squares (OLS) regressions and propensity score matching (PSM) methodology, the authors test whether political views are related to fintech mortgage lending, after controlling for other county characteristics including population, unemployment rate, median income, median age, minority ratio and education.FindingsThe authors find that a higher tendency toward Republican views is positively associated with adoption rates of fintech mortgages. The empirical results are supported by Republican ideology, which advocates for deregulation and market-driven solutions, as well as an increasing skepticism among Republicans toward traditional banking and financial institutions.Originality/valueThis paper contributes to the growing body of literature on fintech credit. By focusing on political views to explain the adoption of fintech mortgage lending – a recent and potentially disruptive innovation – the authors provide new insights into the dynamics within fintech credit markets.

Financial innovation and gender dynamics: a comparative study of male and female FinTech adoption in emerging economies

Purpose This paper aims to identify the factors influencing the adoption of financial technology (FinTech) services among Indian residents. Moreover, it compares the awareness levels among both male and female users to offer a comprehensive insight into FinTech adoption. Design/methodology/approach The research comprises two cross-sectional surveys utilizing self-administered questionnaires: Study A involves 411 male participants and Study B involves 473 female users in FinTech adoption. This article used a “Statistical Package for Social Science (SPSS) followed by partial least squares-structural equation modeling (PLS-SEM)” for data analysis. Findings The exciting finding reveals that attitude and personal innovativeness have a significant impact, while technology anxiety shows a statistically insignificant impact on awareness in both studies. Surprisingly, the socio-demographic factor significantly impacts awareness (in Study A) and has an insignificant impact on awareness in Study B. Moreover, both studies reveal that awareness significantly impacts perceived usefulness and ease of use. Additionally, the outcomes confirm a positive relation between awareness, perceived usefulness, ease of use and FinTech adoption in both studies. Practical implications The present research will offer valuable insights to all FinTech service providers and stakeholders, aiding them in planning and designing relevant policies. Originality/value As far as the researchers are aware, this study stands as the initial survey into FinTech that specifically examines the impact of gender on technology adoption. The divergence in awareness and adoption rates between males and females and the authors’ insightful findings illuminate the context's uniqueness. Moreover, this article offers a robust model for using FinTech services from the perspective of a developing economy.

Encouraging Digital Financial Technology Adoption during a Crisis: Experimental Evidence from Ghana

Encouraging Digital Financial Technology Adoption during a Crisis: Experimental Evidence from Ghana

Financial literacy, financial technology, and financial inclusion: Effect on the financial management of MSME

This research analyzes the effect of financial literacy, FinTech, and financial inclusion on the financial management of MSMEs in Indonesia, using the Resource-Based View theory and the Technology Acceptance Model. This research uses quantitative methods with a population of 27,162 MSMEs in Badung Regency. The sampling method uses probability sampling with a simple random sampling technique, with a sample of 395 MSMEs. Data was collected through questionnaires in hardcopy form and Google Form. Hypothesis testing was carried out using the Structural Equation Model (SEM) approach based on Partial Least Square (PLS) version 4. The research results show that financial literacy, financial technology and financial inclusion have an influence on financial management. The strongest variable that has an influence on financial management is the financial technology variable. This shows that technology adoption can increase effectiveness in financial management. It was found that the higher the financial literacy and adoption of financial technology, as well as financial inclusion, the wiser MSMEs in Badung manage their finances. They are better prepared to face challenges, increase transparency, and gain access to financing. This research recommends using a wider sample, for example using samples from all districts/cities in the province.

Tantangan Etika dalam Pengelolaan Anggaran Negara dalam Era Transformasi Digital

Digital transformation has reshaped the challenges and strategies of managing national budgets. This era places transparency, accountability, integrity, and data security as its primary focus. The significance of transparency and accountability in the management of national finances, particularly through the adoption of information technology, presents opportunities to enhance the effectiveness of public services. However, these changes also bring ethical challenges, especially concerning data security. The success of digital transformation requires ethical leadership, an understanding of data security risks, and the implementation of stringent policies. The adoption of financial technology can expedite the digitization of public services, escalating the risks associated with data security and potential fraud. Therefore, strategic strategies are needed to ensure that budget management adheres to ethical principles and integrity. The active role of the government is crucial in ensuring that transparency and accountability remain top priorities. Concrete steps, such as interactive services through digital platforms, can increase public engagement. The importance of integrity and data security is acknowledged as a central point, with policies and practices supporting information security. Further research can explore the role of new technologies, such as artificial intelligence, in enhancing transparency and data security in the management of national budgets.

BARRIERS IN ADOPTION OF FINTECH BY STREET VENDORS AND HAWKERS IN INDIA USING INTERPRETIVE STRUCTURAL MODELING

The adoption of financial technology (fintech) has the potential to make banking and financial services more accessible and convenient for all, but there are significant barriers preventing the adoption of fintech by street vendors and hawkers in India. This study aims to identify and analyse the barriers to fintech adoption using interpretive structural modelling (ISM). The research identified nine key barriers to fintech adoption, including perceived risk, lack of trust, lack of perceived benefit, social influence, lack of awareness, cash culture, lack of literacy, perceived ease of use, and lack of financial literacy. The study utilizes ISM to develop a hierarchy of these barriers and their interrelationships. The findings suggest that to promote the adoption of fintech, it is essential to build trust and awareness of fintech services through education and out-reach programs. This research provides a comprehensive understanding of the barriers to fintech adoption among street vendors and hawkers in India and offers insights into how these barriers can be overcomed. The study contributes to the development of strategies that can help promote the adoption of fintech among marginalized populations and advance financial inclusion in India.

Adoption of Financial Technology (FinTech) Services for Iraqi Bank Users: an extension of technology acceptance model

The study aims to explore the determinants of Financial Technology adoption among Iraqi bank users. Building on the Technology Acceptance Model, the study integrates Perceived Economic Wellbeing and Digital Literacy with traditional TAM constructs including Perceived Ease of Use, Perceived Usefulness, and Subjective Norms. The data were collected through a survey methodology which included banking clients in Iraq. A total of 280 bank customers contributed to the research, yielding a response rate of 93.33%. Hypotheses were tested using Structural Equation Modelling (SEM). The findings suggest that perceived usefulness, ease of use, subjective norms, and digital literacy are instrumental in adoption FinTech services. On the other hand, economic well-being has no significant impact. This implies that digital literacy and social influence exert a significant effect on FinTech acceptance by users in developing countries. The study will be useful for policy makers and the management of financial institutions aiming to enhance FinTech adoption through policies aimed to improve users perceptions of usefulness and ease-of-use as well as to develop users digital literacy. The study contributes to the existing literature limited literature on FinTech adoption in the Arab world, particularly Iraq

The Influence of the Use Financial Technology, Owner Financial Literacy, and Risk Tolerance on the Performance of MSMEs in Indonesia

This study investigates the influence of financial technology adoption, owner financial literacy, and risk tolerance on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Amidst the diverse landscape of Indonesian MSMEs, characterized by challenges in accessing formal financial services, the study examines the role of FinTech in overcoming these barriers and fostering business growth. Additionally, it explores the significance of owner financial literacy in facilitating informed decision-making and the strategic importance of risk tolerance in driving business innovation. Through a quantitative research design and Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis, the study offers insights into the nuanced relationships between these factors and MSME performance. The findings provide actionable insights for policymakers, financial institutions, and MSME owners, aiming to promote sustainable MSME development and economic prosperity in Indonesia.

Financial Technology Adoption on Payment Systems and Financial Transactions Among Millenials in Indonesia

This research aims to see how far the adoption of digital payment systems and electronic financial transactions in Indonesia is based on the factors used in the theory acceptance model (TAM) method, such as perceived usefulness and perceived ease of use. Several factors, such as social influences, financial literacy, security and privacy, and government support, are added to the effects of the intention to adopt digital payments, especially after the COVID-19 pandemic. Data processes with SmartPLS 3 and uses SEM-PLS method to see that all the factors are supported to adopt digital payment systems in Indonesia. Results show that perceived usefulness and ease of use are the factors that drive the intention to adopt digital payment systems. Besides that, government support drives the intention to adopt digital payment systems by regulations to develop digital payment ecosystems. Others such as social influences, financial literacy, and security-privacy aren’t influenced on intention to adopt digital payment systems in Indonesia.

Financial technology adoption among small and medium enterprises in Ghana

Financial technology adoption among small and medium enterprises in Ghana

The Effects of Financial Education on the Adoption of Financial Technology (FinTech) Services in the Buea Silicon Mountain Community of Cameroon

This paper sought to assess the effects of financial education on the adoption of financial technology (FinTech) services within the Buea Silicon Mountain community of the south region of Cameroon. A total of three hundred individuals were purposively sampled and data was collected through the use of structured questionnaires guided by parameters as observed in the Technology Adoption Model (TAM). Hypotheses were tested using the CB-SEM technique with analytical packages including SPSS 24 and AMOS 23. The findings revealed limited utilization of online banking and peer-to-peer lending platforms, with cryptocurrency exchanges and crowd-funding platforms ranking as the least utilized instruments. Additionally, the study establishes a significant influence of both financial knowledge and financial behaviour on the adoption of FinTech services. Individuals who comprehend the financial benefits of FinTech and perceive these services as innovative solutions are more likely to adopt them. This positive attitude is driven by the perceived ease of use, transaction tracking, and the potential to generate income through FinTech solutions. However, this paper did not find any statistically significant effect of financial skills on the adoption of FinTech services. Therefore, financial knowledge and a positive attitude toward FinTech services emerged as pivotal factors positively influencing financial services adoption in the Buea Silicon Mountain community of Cameroon.

Enhancing ¬nancial well-being by -ntech: Assessing mediator - moderator impacts

Purpose - This study explores the factors shaping the relationship between the intention to use and the actual using behavior of Fintech services in the context of economic fluctuation. The main aim is to shed light on the intricacies of this relationship and contribute valuable insights to the field. Design/Methodology/Approach - We selected SmartPLS 4.0 software to process the collected data and applied the Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess hypotheses and relationships between potential variables. Findings - We found that the intention to use Fintech positively affects Using Fintech Behavior, which subsequently influences Financial Well-Being (FWB). Additionally, we also found the moderation effect of Financial Literacy (FL) and Resistance to Change (RC) on these relationships through Using Fintech Behavior (UFB), Financial Socialization (FS), and Intention to use Fintech (IT) impact FWB. Surprisingly, UFB does not function as a mediator in relationships involving FL, Financial Stress (FSt), and FWB. Practical implications - The findings’ results indicate that the Fintech service market in Vietnam is not yet diverse, not completely separated from communication services, and the habit of using cash still exists. In addition, despite having financial socialization, financial literacy, and intention to use Fintech, users are still not ready for innovation and the adoption of financial technology. This study suggests that Fintech service developers need to strengthen incentive policies and develop services towards geographic segmentation. Originality - The study could be considered one of the first studies in Vietnam to discuss how to enhance financial well-being at the individual level, especially in evaluating how using Fintech could affect financial well-being. It concludes that Financial Literacy and Financial Socialization are two noticeable factors that might impact Financial Well-being, and Using Fintech is a key to thriving Financial Well-being. Keywords Financial literacy, financial socialization, financial stress, financial well-being.

The Determinants of Financial Technology (Fintech) Usage Acceptance Among Undergraduates

Financial technology (FinTech) is one of the new fields made available to users through the introduction of technological breakthroughs. These advancements have made banking and finance-related services and transactions easier and more accessible for customers. As undergraduates, who represent the younger generation in the nation, complete their academic and associated work, they are increasingly exposed to these new technologies. While several surveys and studies from other nations have examined the variables influencing the adoption and utilisation of financial technology, Sri Lanka has not received sufficient attention in this specific area of inquiry. Therefore, this research aims to fill the current gap in the field by focusing on the final-year undergraduates of the University of Sri Jayewardenepura and identifying the key determinants underlying undergraduates' adoption of financial technology usage in Sri Lanka. 305 undergraduate students from the university's three main faculties were selected using simple random sampling, and PLS structural equation modelling was employed to analyse the data. The findings of the study indicate that the most significant factors influencing the adoption of financial technology usage are digital accessibility, convenience, and personal innovativeness. The results of the study provide valuable insights on how to promote awareness and usage of financial technology among students. The conclusions drawn from the study have significant implications for empowering FinTech usage within the Sri Lankan undergraduate population.