Financial Technology Adoption Research Articles

DEMYSTIFYING A NEW FRAMEWORK FOR ADOPTION OF FINANCIAL TECHNOLOGY AMONG WOMEN MICRO ENTERPRISES

This is a conceptual paper to demystify a new framework for adoption of Financial Technology (FinTech) among women microenterprises (WMSME) in Peninsular Malaysia who are involved in traditional home-based businesses that rely heavily on cash on delivery as payment system. Previous epidemics experience suggests that COVID-19 impact vulnerable groups and amplify any existing social and economic inequalities that are faced by women micro enterprises (WMSME). While the Malaysian government has allocated RM230million in financing to assist women entrepreneurs affected to manage liquidity and increase business capacities, little has been done on improving the financial digital literacy that would improve the business transactions through adoption of FinTech. Because of the infectivity rate of the virus through manual cash payment, adopting FinTech that is a combination of financial services and information technology, is crucial to facilitate business transactions. The use of FinTech in Malaysia is not optimal because of the high cost to switch to technology, lack of understanding of the use of FinTech, and limited ability of rural communities to apply FinTech. It is even more difficult for WMSME that operate from home who have limited exposure to sophisticated business transactions outside their home. Factors relevant to WMSMEs are proposed as the theoretical framework to demystify the intention to adopt FinTech to suit the home-based business. Purposeful sampling in which an online survey is proposed to be used as primary data collection and subsequently analyze with statistical tools to meet the objectives of determining the relationship between perceived ease of use and intention to adopt FinTech among WMSMEs, examining the relationship between financial literacy and intention to adopt FinTech among WMSME, examining the relationship between government incentives and intention to adopt FinTech among WMSMEs in line with the aim to demystify the fundamentals for future research and practice.

Fintech Adoption and its Impact on Sustainability: Risk Benefit Analysis of an Emerging Economy

This study aims to analyze how the six variables, such as perceived legal risk, perceived performance risk, perceived cyber risk, perceived financial risk, perceived economic benefit, ease of use, and monetary benefit affects the adoption of financial technology, with the moderating effect of gender and education. Additionally, it explores the impact of Fintech adoption on economic, environmental, and social sustainability of Pakistan. For this purpose, a quantitative research approach has been employed by using a well-designed questionnaire. Moreover, the sample size of 312 was considered and the responses were collected through Google forms. The data collected was then analyzed using SPSS. The study’s findings revealed that the perception of the advantages of using fintech has a positive impact on its adoption. The perception of risk has a negative impact, however, this impact is much lesser than the benefits. Risk perception negatively impacts sustainability while benefits perception impacts sustainability positively. Thus, this study can provide policymakers in emerging economies with valuable insights into the perceived risks and benefits of Fintech adoption for sustainable development. This study gives insight to the practitioners and researchers on how perceived risk and benefit can impact Fintech adoption and how its adoption, in turn, impacts sustainability. The research can contribute to informed policy decisions, support the development of robust regulatory frameworks, advance knowledge, and promote inclusive growth in emerging economies.

Financial Technology Issues from Developing Countries Perspective: Role and Challenges a Systematic Literature Review

This article aims to explain the acceptance of the use of financial technology based on the perspective of developing countries. The ease of obtaining financial services has an impact on the development of financial services business from traditional to financial technology based. The development of financial technology has changed the way and attitude of the public in conducting financial transactions. However, the potential benefits of technology-based financial services have not been fully adopted simultaneously, especially in developing countries. This is due to several conditions both related to demographics and socio-culture which result in different perspectives on financial technology. 31 papers were found to be pertinent to the study topic “explain the role and challenges in the adoption of financial technology in developing countries” after 215 asticles had been chosen.

Physical Frictions and Digital Banking Adoption

The behavioral literature suggests that minor frictions can elicit desirable behavior without obvious coercion. Using closures of ATMs in a densely populated city as an instrument for small frictions to physical banking access, we find that customers affected by ATM closures increase their usage of the bank’s digital platform. Other spillover effects of this adoption of financial technology include increases in point-of-sale transactions, electronic funds transfers, automatic bill payments and savings, and a reduction in cash usage. Our results show that minor frictions can help overcome the status quo bias and facilitate significant behavior change. This paper was accepted by David Sraer, finance. Supplemental Material: Data and the online appendix are available at https://doi.org/10.1287/mnsc.2023.4972 .

Money Laundering Prevention through Regulatory Technology and Internal Audit Function in Indonesia Banking Sector

Money laundering poses a significant challenge globally, involving using cash to conceal the origins of funds. With the rise of digitalisation and the adoption of financial technology (FinTech), the financial sector has been compelled to adapt to these changes. The COVID-19 pandemic has further accelerated the use of FinTech services, including digital banking, to address social distancing concerns and enhance customer convenience. Despite having an index of risk considered moderate for money laundering, Indonesia continues to be a destination for these types of illegal activities. Anti-money laundering (AML) and counter-terrorism financing (CFT) programs must be implemented, especially in all financial service providers that Bank Indonesia oversees.Additionally, the internal audit function is crucial in identifying money-laundering activities within banks. However, there needs to be more research regarding integrating RegTech and evaluating internal audit functions in preventing money laundering in Indonesian banks. This paper aims to address this gap by examining the benefits of RegTech solutions and the role of internal audit functions in preventing money laundering. The findings can be used to enhance regulations and implement effective measurement to combat money laundering and illicit activitivities. Furthermore, the study highlights the importance of Indonesia's membership in the Financial Action Task Force (FATF) to strengthen the country's AML framework and contribute to global policies on AML and countering the financing of terrorism.

Gender Diversity and Sustainability Performance: The Role of Financial Technology Adoption as Moderator

This research is intended to explore the influence of gender diversity on financial and bank environmental performance. In addition, in order to strengthen the impact of gender diversity on financial performance and environmental performance, this research also tests the moderating effect of financial technology adoption. The population in this study examines banks that received the 2022 Digital Banking Awards, which is the research period from 2017-2022. The proportion of women on the Board of Commissioners and the Board of Directors is a proxy for gender diversity. This research method uses random effect models and fixed effect models in regression equations that test financial performance. Meanwhile, the regression model that tests environmental performance uses logit regression. This study shows that the percentage of females on boards has an impact on financial results, but not on environmental performance. The financial and environmental performance is not affected by the gender ratio in the board of directors. Other results show that, although financial technology can enhance the influence of women's representation on boards regarding environmental performance, but it does not have an impact on financial performance. On the other hand, the impact on financial and environmental performance of the proportion of women on the board of directors is not reduced by the adoption of financial technology. The implications of these findings provide input for regulators to determine the threshold for women's involvement on the board of directors.

Does Financial Technology Adoption Influence Bank’s Financial Performance: The Case of Jordan

This research will examine the impact of the adoption of financial technology on conventional banks’ financial performances. The research will place emphasis on the listed commercial banks at Amman Stock Exchange—ASE, using financial data for the period 2012–2020. The main study tool was a questionnaire that focuses on three main dimensions: financial inclusion—(FI), alternative payment methods—(APMs) and automation—(Auto). A total of 115 questionnaires were distributed to all commercial banks listed at Amman Stock Exchange—ASE. Multivariate regression analysis was employed to test the impact of the FinTech dimension as a proxy for independent variables on Jordanian commercial bank’s financial performance as a proxy for dependent variables. Based on the analysis results, the study concludes that all three FinTech dimensions: FI, APMs and Auto. reflected a positive significant impact on Jordanian commercial bank’s financial performance indicators (total deposit, total loans and net profit margin). Therefore, banks in general should invest more and more into financial technology tools and applications, in order to recruit potential clients and retain their current clients, to be able to sustain under fierce competition within the banking sector.

An Empirical Study of User Adoption of Cryptocurrency Using Blockchain Technology: Analysing Role of Success Factors like Technology Awareness and Financial Literacy

The study aims to investigate how an individual’s technology awareness, subjective financial literacy and personal innovativeness characteristics impact the intention to use blockchain-based digital currencies such as cryptocurrency. The UTAUT 2 (Unified Theory of Acceptance and Use of Technology 2) model is extended with crucial constructs to develop the conceptual model. A total of 312 responses are analysed using Covariance-Based Structural Equation Modelling (CB-SEM). The moderation effects are assessed using multi-group analysis. The findings show a significant moderating effect of technology awareness and subjective financial literacy on the relationship between performance expectancy (PE) and behavioural intention to use cryptocurrency (BI). It further identified that performance expectancy (PE) mediates personal innovativeness (PI) and usage intentions (BI). The study adds to the growing literature of digital currency adoption by focusing on individual innovativeness, technology awareness and financial literacy. It also proposes a research model that can be generalised for new-age consumer-based financial technology adoption.

Determinant Factor Analysis of Financial Technology Adoption Among Halal Sector Microenterprises in Indonesia

This study offers an empirical analysis of the factors that influence the customer attitudes towards the adoption of Financial Technology services within the Micro, Small, and Medium Enterprises (MSMEs) sector. Using Survey method, a total of 240 respondents from MSMEs were included in the sample for this study. These respondents were selected from 16 different areas located in five typical provinces in Indonesia, namely Aceh, West Sumatera, Jakarta, West Java, and East Java. This research investigates the impact of several key factors on the consumer attitudes of MSMEs towards the adoption of FinTech. These factors include Perceived Ease of Use, Digital Literacy, Risk Perception, Infrastructure, Entrepreneurial Spirit, and Perceived Usefulness. This paper utilized the Structural Equation Modelling (SEM) technique to analyse various measurement, observations, and a hybrid model. The results of the study suggest that within the specific domain of halal sector MSMEs in Indonesia, there is no significant impact of parameters such as digital finance literacy, perceived risk, and perceived utility on the adoption of digital financial services. Nevertheless, it has been observed that the perceived ease of use, the presence of adequate infrastructure, and the presence of an entrepreneurial mindset have been found to have a positive and statistically significant influence on the adoption of financial technology services among MSMEs. This study also offers theoretical and practical implications for key stakeholders seeking to enhance the utilization of financial technology services among MSMEs in Indonesia

Factor Influencing Intention to Adopt Fintech in Pakistan: A Mediating Effect of Customer Attitude

This study's goal is to better understand the variables that affect Pakistani consumers' acceptance of and use of Financial Technology (FinTech) services in the banking industry. Data from a sample size of 339 banking clients were gathered using a research methodology based on quantitative approaches and a causal approach. According to the study's findings, people's intentions to utilise financial technology (FinTech) are greatly impacted by how beneficial they believe the technology to be and how secure they believe it to be. The relationship between perceived usability, perceived usability, and intention to utilise financial technology is mediated by client attitudes. Additionally, a key factor in affecting the adoption of financial technology is the perspectives of the customers. This demonstrates the need to enhance user experience and effectively address worries about the degree of security. With the aim of encouraging the uptake of FinTech services and fostering a financially stable environment, policymakers, financial institutions, and FinTech businesses in Pakistan may make use of these findings. This research significantly adds to the body of knowledge on technology adoption and provides a strong foundation for further research in the dynamic and ever-evolving field of financial technology (FinTech). This research also lays a strong platform for future studies in the area of information technology (IT).

Ethical Fintech is a New Way of Banking

The adoption of Financial Technology (FinTech) and digital banking services has revolutionized the financial industry, providing convenience, accessibility, and cost-effective solutions to users. However, along with its benefits, the widespread use of FinTech has also raised concerns regarding privacy, security, consumer protection, ethical considerations, and regulatory compliance. This paper aims to explore the ethical dimensions of FinTech adoption and the potential negative consequences associated with it. Drawing on qualitative research methods, including interviews and document analysis, the study investigates issues such as consumer privacy, data breaches, trust, financial integrity, adoption barriers, and ethical controversies in the diffusion of FinTech. The findings highlight the importance of addressing these ethical concerns to restore digital ethics in the fintech industry and ensure principles such as fairness, transparency, accountability, and access in technology are realized. The paper concludes by emphasizing the need for a balance between technological innovation and ethical practices to create a sustainable and responsible future for FinTech and digital banking.

Adoption of Financial Technology and performance of Deposit Money Banks in Nigeria

The present study investigated the impact of Fintech on the performance of Nigerian banks, focusing on United Bank for Africa (UBA) and Zenith Bank as case studies. In this study, the secondary used data are collected from the banks’ quarterly report and payment information system from the Central Bank of Nigeria statistical bulletin from 2012 to 2019. The ARDL technique estimation was employed to analyse the models. The findings reveal that payment technologies have both positive and negative effects on key financial indicators such as earnings per share, price-earnings ratio, return on assets, and short and long term return on equity. However, the positive impact outweighs the negative impact. Consequently, payment financial technologies offer promising opportunities for enhancing the performance of Nigerian banks, as they can contribute to an increase in return on assets and equity, earnings per share, and price-earnings ratio. Therefore, the study recommends that banks leverage the positive effects of these payment financial technologies while taking proactive measures to address potential challenges, such as cyber fraud and other obstacles that may adversely affect the performance. Nigerian banks can harness the benefits of Fintech to drive financial inclusion and improve their overall performance.

Factors Affecting the Adoption of Financial Technology in Accounting and Auditing Firms: An Empirical Study Using the Technology Acceptance Model

Factors Affecting the Adoption of Financial Technology in Accounting and Auditing Firms: An Empirical Study Using the Technology Acceptance Model

The Impact of Financial Resources, Risk Acceptance, Customer Pressure on Financial Technology

The study aims to identify the impact of financial resources, risk acceptance, and customer pressure on the adoption of financial technology on bank employees in Jakarta. The research uses a quantitative approach with survey methods and questionnaires as data collection tools. The sample consisted of 75 bank employees randomly selected from several banks in Jakarta. The data collected will be analyzed using the Structural Equation Model (SEM) to test the research hypothesis. The results of this research can provide an area on the factors that influence the adoption of Financial technology by banking employees, and provide recommendations for increasing the acceptance and use of this technology in the banking industry.

The effect of financial technology (Fin-tech) on the conventional banking industry in India

The purpose of the study is to measure the impact of financial technology on the banking industry. Digital disruption has an impact on bank business models as well as conventional businesses as a result of changed customer behavior. This paper examines the impact of financial technology on the Indian conventional banking industry using a structured questionnaire filled out by 300 customers’ of a bank selected using simple random sampling. For hypothesis testing, the statistical technique of regression analysis is used.In order to identify the impact of financial technology on the banking industry, the value propositions that influence the adoption of financial technology or banking products are analysed using importance and usefulness criteria such as customer satisfaction, net promotion score, promotion, ease of use, etc. The results show that banks have been positively impacted by the use of financial technology as it can now enhance their value proposition which includes improved service quality, marketing and a wide range of merchants. The research has implications for the banking industry that can make the services easily accessible for customers and improve their value proposition. Furthermore, customers are aware that the banking industry uses financial technology which can make their work easier too. The literature in the field of financial technology is limited in terms of theory and the practical issues are being improved with easy adoption and proper marketing needs in the research. This will improve and guide future research in the same area.

The determinants of financial technology adoption amongst Malaysian waqf institutions

PurposeThe popularity of financial technology (fintech) is rising in society due to fintech's direct benefits to users. This digital-based approach is one of the outputs of the Industrial Revolution 4.0, which transformed the path of human history and resulted in the development of digital transformation strategy innovation, more commonly referred to as digitalisation. Previous literature has predicted that integrating fintech into waqf management will facilitate fintech's growth and expand waqf outreach in Malaysia. Therefore, this paper aims to examine the impact of “Industry 4.0” on the expansion of fintech into cash waqf in Malaysia.Design/methodology/approachThis study uses Rogers' (2003) diffusion of innovation (DOI) model. In addition, a quantitative approach based on structural equation modelling (SEM) was utilised to analyse the relationship between awareness, knowledge, relative advantage, social norms, perceived trust and fintech adoption in waqf institutions by using the tool Analysis of Moment Structures (AMOS) version 23.0 with maximum likelihood estimation.FindingsThe overall indicate that perceived trust and social norms significantly influence the adoption of fintech by Malaysian waqf. At the same time, other factors such as awareness, relative advantage and knowledge do not appear to significantly influence the adoption of fintech amongst Malaysian waqf institutions.Research limitations/implicationsThis study contributes significantly to the current literature concerning the Fourth Industrial Revolution and the wave of technologies. In addition, this study supports relevant theories, including DOI and other technology adoption theories. Aside from this, the study provides empirical contributions to waqf management regarding collecting and distributing waqf, improving the level of regulation of the waqf institutions and enhancing trust between donors, waqf management and beneficiaries. This study is amongst the first in the area of waqf that focus on Malaysian waqf intitutions.Originality/valueThis is important for policy development to support the utilisation of fintech for waqf institutions, which leads to more transparency and efficiency.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2022-0264

The role of fintech in promoting green finance, and profitability: Evidence from the banking sector in the euro zone

Technological innovations have disrupted business models, including those of financial services. New technologies optimize various functional aspects of the banking firms and it is critical to assess if they can expedite green finance while supporting bank profitability. The paper employs a comprehensive sample of European banks between 2011 and 2021 by using a panel fixed effects regression model to study the relationship between the adoption of financial technology and bank profitability. The results show a positive relationship between investment in financial technology and green lending attributable to the search, diligence, and monitoring efficiency of new technologies Similarly, results indicate a direct influence of fintech investment on the risk-adjusted return on capital associated with low cost, expanded product base, and lower economic capital. Findings also show the important role of firm size, human capital efficiency, and market concentration in determining bank profitability and green lending decision. These results have important implications for the role of financial technology in green finance and sustainability-related goals.

FinTech Adoption in Palestine ‎

This study aimed to investigate the extent to which financial technology (Fintech) is adopted in Palestine from the perspective of bank customers. The researcher meant to analyze various, significant dimensions such the barriers, advantages, components and risks of adopting the (Fintech). The study adopted a descriptive-analytical approach using a questionnaire as a main tool for the study. The study population consisted of bank clients or customers; and a sample of (500) customers of the most important Palestinian banks was selected randomly. The study concluded that the level of total adoption of financial technology in Palestine is medium; the main findings of the study also showed a high relative significance of both the barriers and risks of using Fintech, especially with regard to the preference of traditional banking operations or transactions over the use of electronic services due to the absence of clear laws and legislations that aim to protect banking transactions and dealings using electronic services. Furthermore, the study results showed that the relative importance of the advantages and components of (Fintech) has decreased despite the reduction in transaction costs by exempting electronic banking services from any commissions and / or fees. With regard to the demographic variables, the researcher found that there were no differences in the adoption of financial (Fintech) in Palestine that could be attributed to participants' gender, age or the bank they work for, while there were differences attributed to the variables of the city in which the bank is located and educational level of the study participants. The study concluded with several recommendations; the most important of which was the need for banks and bank administrations to enhance their customers' confidence in electronic banking services by providing an adequate technical infrastructure for the adoption and use of financial technology in Palestine.

The Study of Fintech Solutions and its Adoption with Special Reference to MUMBAI City

Financial technology (FinTech) is altering financial services in a number of ways, as well as how clients interact with the products these business models offer. Several FinTech solutions are developed to link the financial assets of consumers with technology to make use of any financial operations they might be interested in as simple as feasible. Data analysis reveals that people are interested in financial solutions. Its expanding adoption is based on people's understanding and perception of fintech. the various subcategories of fintech applications. It uses the survey method. With the aid of structured questionnaires, field data is gathered In order to examine how people felt about the adoption of financial technology, the author collected 100 samples from different parts of Mumbai. This study primarily focuses on the performance metrics for implementing financial technology and how they affect acceptance and popularity. Anova test is used to measure association of Demographic Factors on fintech Adoption.

FinTech and the COVID-19 pandemic: Evidence from electronic payment systems

This paper investigates the effects of the coronavirus disease 2019 (COVID-19) pandemic on financial institutions and on consumers' adoption of Financial Technology (FinTech) for payments. This paper documents the following findings in Kenya. (1) The COVID-19 pandemic accelerated the adoption and increased the payment concentration of FinTech. We document an approximately 54% increase in mobile banking transactions, a 19.56% increase in mobile banking agents, and a 14.56% increase in the number of mobile banking accounts. (2) The use of all types of electronic payment cards declined significantly during the pandemic. (3) The pandemic magnified interbank contagion and liquidity risks and reduced both domestic and international electronic fund transfers via both the Real-Gross Settlement System and the Automated Clearing House. Overall, our results indicate that FinTech not only partially alleviated the negative impact of the COVID-19 pandemic during Q1 of 2021 but also accelerated consumers' adoption of FinTech and digital onboarding, especially in Q3 and Q4 of 2022.