FinTech Adoption Research Articles

The effects of FinTech adoption on bank loan spreads

PurposeThis paper aims to examine the impact of traditional banks’ financial technology (FinTech) adoption on corporate loan spreads and lending practices.Design/methodology/approachThis study examines the impact of FinTech adoption by banks on corporate loan spreads and lending practices. By analyzing data from bank 10-K filings, we develop a novel metric to assess FinTech adoption at the individual bank level. Our analysis reveals a significant positive correlation between increased FinTech adoption and higher corporate loan spreads, particularly for loans that are relatively informationally opaque. This causality is further validated through a quasi-natural experiment. Additionally, we identify trends toward loans with smaller sizes and longer maturities in banks with advanced FinTech integration.FindingsUsing a sample of corporate loans issued from 1993 to 2020, this paper documents a significant positive relationship between a bank’s increased FinTech adoption and higher loan spreads. This correlation is especially noticeable for loans that are informationally opaque. Moreover, the paper reveals trends toward smaller loan sizes and longer maturities with advanced FinTech integration in banks. Overall, these findings indicate FinTech enhances efficiency in processing hard information and holds the potential to enhance financial inclusion.Originality/valueThis paper contributes to two significant strands of finance literature. First, it highlights how banks with advanced FinTech integration gain advantages through enhanced processing of hard information. Furthermore, it underscores the role of FinTech in promoting financial inclusion, particularly for those borrowers facing informational opacity.

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.

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.

Fintech in Pakistan: Current Landscape, Challenges, and Global Insights

Fintech has been a global phenomenon and trend lately. Fintech can completely revolutionize the financial industry. The paper seeks to determine how fintech may help promote economic development in Pakistan, particularly by increasing access to financial services for those in rural and unreached areas. This study will do an in-depth analysis of challenges for Fintech adoption In Pakistan and provide solutions, policy recommendations for them. In an economy like Pakistan, where financial inclusion rates are below average Fintech can prove to be a game changer. Modern Fintech facilities like digital banking, online payments, alternative lending, micro-finance, and robo-advisory can help promote financial inclusion in Pakistan. Fintech has been proven to increase efficiency and cut down the cost of providing financial services. The main aim of this study is to analyze the current Fintech landscape in Pakistan and understand the obstacles hindering its adoption in Pakistan. This study will also suggest areas where fintech can be applied and derive lessons from other countries where Fintech has been successfully applied. This paper is a systematic review of the already existing literature and uses secondary data. We will use this already existing data to provide a clearer picture of what fintech innovations can be applied in Pakistan according to its financial landscape and how we can learn from other countries. Overall, the results of this study will help in understanding the fintech situation in Pakistan.

FinTech and economic readiness: Institutional navigation amid climate risks

The current climate change is declared as a global boiling point by the UN; businesses are facing increasing costs in maintaining their supply chains and production standards and are being urged to adapt and innovate for environmental transition. With the Industrial Revolution 4.0, FinTech has helped develop households’ and firms’ resilience against climate change. This study explores how businesses use FinTech to increase economic readiness to attract adaptation investments. This study hypothesizes that, at initial levels of businesses, FinTech adoptions are typically targeted to improve profitability while, as businesses mature, their FinTech adoption shows a transition towards sustainability. Following this, the role of institutions in regulating an ecosystem is to promote sustainable financial innovations. This study employs a 114-country panel data analysis to investigate these dynamics empirically. The estimation using Panel Quantile Regression showed that institutional quality can moderate the U-shaped FinTech adoption and business readiness relationship to expedite the transition under Sustainable Development Goal 9. This research sheds light on the impact of institutional quality on improving businesses’ ability to attract adaptation investments via promoting sustainable innovation. Outcomes offer valuable insights for policymakers, firms, and investors seeking to foster a more resilient economy.

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.

Mobile fintech adoption in Sub-Saharan Africa: A systematic literature review and meta-analysis

Financial technology (fintech) has become an important means of promoting financial inclusion in developing countries. Understanding why people use fintech services is crucial for improving financial inclusion and policy development. This study examines the drivers of mobile fintech service adoption in Sub-Saharan Africa, a region with the lowest financial inclusion rates in the world. We analyze the determinants of the use of mobile money, mobile banking, electronic wallets, and internet banking by summarizing the extensive empirical research through a systematic literature review. Based on a meta-analysis, we conclude that perceived ease of use and perceived usefulness are most important. We also find a lack of research on how the supply side drives fintech adoption. Finally, we find large-scale field experiments to be underrepresented in the literature. Policymakers should focus on enhancing digital and financial literacy and setting standards for technology compatibility to create a supportive regulatory environment for wider mobile fintech adoption in Sub-Saharan Africa.

Digital transformation in financial industry: antecedents of fintech adoption, financial literacy and quality of life

Purpose This paper aims to investigate the variables that could contribute to facilitating or hindering FinTech adoption in Jordan and how that will affect human well-being (quality of life [QoL]). Design/methodology/approach A conceptual framework was formulated through the integration of “the unified theory of acceptance and use of technology” (UTAUT), “task-technology fit” (TTF) model and two additional factors, namely, “financial literacy” (FL) and “quality of life” (QoL). A cross-sectional online survey was used to obtain data from 378 FinTech users employing a quantitative method. AMOS 26.0 was utilized to analyse the data based on “structural equation modelling” (SEM). Findings The analysis of the structural path found that UTAUT constructs including “performance expectancy (PE), effort expectancy (EE), facilitating conditions (FC), social influence (SI)”, and TTF were significant determinants of FinTech adoption. Only technology characteristics (TECH) was a significant predictor of TTF. Also, the analysis of empirical data revealed a significant mediating impact of FinTech adoption on the association between FL and QoL, underlining the important role of digital FL in digitalizing societies. Likewise, FL affected the QoL directly. Practical implications This research will be beneficial for “FinTech service providers” (FSPs) and policymakers to offer thorough insights regarding the current relatively low acceptance rates of FinTech, contributing to strategies’ formulation that could promote FinTech usage by Jordanian customers, where FinTech is still considered an innovative technology. In addition, FL needs to integrate digital literacy to utilize state-of-the-art technologies for more effective financial management. This is with being able to make decisions facilitating the management of life outcomes which could result in better QoL. Originality/value To the best of the author’s knowledge, this research is the first research paper that integrates the UTAUT and TTF models and also adds two additional constructs, namely, FL and QoL, to investigate the FinTech in the Jordanian setting. This study could contribute to the literature on IT adoption by considering FinTech usage and incorporation into individuals’ life in Jordan.

Risks, Regulations, and Impacts of FinTech Adoption on Commercial Banks in the United States and Canada: A Comparative Analysis

ABSTRACTThe growth of FinTech has increasingly attracted the attention of financial industry players. The speed and complexity with which new financial technologies have spread around the world have created regulatory challenges for the United States and Canadian authorities. Unlike the United States, where there is regulatory fragmentation and a supervisory instrument with regulatory relief, Canada has a more integrated regulatory approach managed by regulatory sandbox principles. The aim of this article is to study and compare the impact of FinTech adoption on commercial banks over the 2018–2023 period in the United States and Canadian FinTech ecosystems. The results essentially show that FinTech has a positive impact on commercial banks' performance and financial growth, and a negative impact on liquidity and financial risk. Our results present several contributions and mainly show that: (1) In the presence of multiple entry channels for FinTech startups, the impact of FinTech on financial performance is higher in the United States than in Canada. (2) Because of its regulatory approach, Canada lags behind the United States in the adoption rate of financial technologies. (3) Balance of power in the financial sector induces commercial banks not to consider FinTech startups as threats but rather as partners that offer opportunities for expertise and reduced regulatory costs. Finally, FinTech can be disruptive and presents many challenges for regulators given the complexity and speed of innovation it promotes.

A Conceptual Framework for FinTech Adoption in Kuwait: Extending the Technology Acceptance Model (TAM)

A Conceptual Framework for FinTech Adoption in Kuwait: Extending the Technology Acceptance Model (TAM)

Penerapan Fintech Dalam Strategi Bisnis Internasional

Financial technology (fintech) has become a major driver of transformation in the global banking sector, offering innovative solutions that not only enhance operational efficiency but also expand the reach and quality of financial services. This study aims to explore how international banks integrate fintech technologies into their business strategies to remain competitive in the ever-evolving global market. By analyzing data from various sources, including case studies of leading banks and academic literature, this study highlights the strategic and operational impacts of fintech adoption. The findings indicate that the implementation of fintech not only improves transaction efficiency and security but also opens new market opportunities and promotes global financial inclusion. However, this study also identifies several challenges in fintech implementation, such as complex regulations and cybersecurity threats, and provides recommendations for effective implementation strategies to overcome these barriers.

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.

Exploring mediating and moderating factors of FinTech adoption for innovations in SMEs

Exploring mediating and moderating factors of FinTech adoption for innovations in SMEs

Impact of self-efficacy and mediating factors on Fintech adoption in the VUCA era

This paper aims to understand the impact of factors affecting the relationship between intention and using Fintech in the VUCA era, which stands for volatility, uncertainty, complexity, and ambiguity. A cross-sectional design was employed in this study. The data was collected via questionnaires, with 1,411 usable responses received through the survey. Partial least squares structural equation modeling (PLS-SEM) was employed to assess the process with SmartPLS 4. Our research did figure out the positive impact of Perceived Usefulness and Perceived Ease of use on behavioral intention and the positive impact of Intention on Using Fintech behavior. Simultaneously, we indicated that Financial literacy could moderate the relationship between Intention and Using Fintech behavior, and Financial self-efficacy would be a mediator of the association between Financial literacy and Using Fintech behavior. Based on the results, we make some recommendations for Fintech developers in Vietnam.

The impact of FinTech adoption on corporate investment: Evidence from China

This research uses panel statistics of Chinese listed companies between 2010 and 2020 to examine when and how financial technology (FinTech) improves the investment efficiency of firms. We determine that the degree of FinTech is positively related to firm investment efficiency. This correlation tends to occur in areas with low levels of commercialization and urban growth, which is indicative of the broad characteristics of FinTech. Simultaneously, the positive effect of FinTech further strengthens the investment efficiency of enterprises through corporate governance and financing paths.

The green Fintech paradox: understanding the dynamics of green brand positioning and user decision-making in the digital financial landscape

Purpose The ever-evolving landscape of financial technology (Fintech) has revolutionised payment methods and raised questions about what drives user behaviour in adopting these innovative solutions. This study, using narrative transportation theory as an underpinning theory, aims to investigate into the dynamics of green user behaviour in adopting Fintech payments. Design/methodology/approach This study used a deductive approach, and with data obtained from 635 respondents through the purposive sampling technique, partial least squares structural equation modelling was employed to yield significant insights. Findings The study found a positive association between green brand positioning and product differentiation. However, it unexpectedly didn't impact user attitudes towards Fintech payments. Green brand image and perceived performance positively influenced product differentiation. Perceived product differentiation fully mediated the association between green brand positioning and user attitudes. The study introduced fear of missing out's (FOMO) moderating role, enriching eco-conscious marketing insights and user behaviour understanding. Research limitations/implications This study reveals crucial implications for marketers, policymakers and user experience (UX) designers operating within the Fintech industry. It emphasises green brand positioning's impact on product differentiation, user attitudes and its mediating role. It advocates for sustainability integration, innovation, strategic messaging and user-centric improvements to optimise user perceptions and competitiveness in the evolving Fintech landscape. The study's cross-sectional design may limit the ability to establish causal relationships over time and overlook temporal changes in green Fintech adoption dynamics; thus, longitudinal studies are warranted to better understand the evolving nature of user attitudes and behaviours towards green Fintech payments. Originality/value This study adds novelty to the existing body of literature by introducing the dimension of innovation appeal to green brand positioning and employing narrative transportation theory in the Fintech realm. The findings also add novelty by highlighting the moderating impact of fear of missing out in predicting the association between green brand positioning and product differentiation in the realm of green Fintech and green use behaviour.

Impact of Fintech Adoption, MSME Digital Readiness, and Regulatory Environment on Financial Performance in Indonesia

This study investigates the impact of Fintech Adoption, MSME Digital Readiness, and the Regulatory Environment on Financial Performance in Indonesia's micro, small, and medium enterprises (MSMEs). Using a quantitative analysis with a sample size of 170, data was collected using Likert scales and analyzed through Structural Equation Modeling - Partial Least Squares (SEM-PLS 3). Results indicate that all relationships hypothesized (Fintech Adoption, MSME Digital Readiness, and Regulatory Environment -> Financial Performance) are positively significant. Specifically, Fintech Adoption positively influences Financial Performance, MSME Digital Readiness shows a significant positive impact on Financial Performance, and a supportive Regulatory Environment enhances Financial Performance significantly. These findings underscore the importance of technological integration, digital preparedness, and regulatory support in bolstering financial outcomes for MSMEs in Indonesia.

Exploring drivers of fintech adoption among elderly consumers

As the digital economy expands, understanding the integration of elderly consumers into this paradigm becomes crucial. This study presents a nuanced exploration of the factors that influence elderly consumers' adoption of fintech services and elucidates the pivotal role of daily digital experiences in fostering the elderly's acceptance of such services. Employing an integrative approach, this study examines demographic, personal, socioenvironmental, and digital usage characteristics, through South Korean panel data (N = 3465) from 2019 to 2020. The findings uniquely identify the 50–64 age group and those cohabitating with younger generations as being more inclined toward fintech usage. This study introduces a novel perspective by demonstrating that elderly individuals' enjoyment of digital media and their engagement with younger generations significantly drive their involvement with fintech services. The elderly exhibits substantial potential as proactive fintech users, navigating perceived risks with discernment. This study contributes to the academic discourse by offering comprehensive insights into elderly consumers' fintech adoption, highlighting the importance of understanding this demographic's unique preferences and interactions with the digital economy. It also underscores the potential for targeted strategies to enhance fintech service adoption among the elderly and foster a more inclusive digital finance landscape.

Fintech Adoption and Banks’ Non-Financial Performance: Do Circular Economy Practices Matter?

Fintech Adoption and Banks’ Non-Financial Performance: Do Circular Economy Practices Matter?

Unveiling the nexus: unravelling the dynamics of financial inclusion, FinTech adoption and societal sustainability in Malaysia

Purpose This study aims to examine the impact of perceived benefits-risk dynamics on financial inclusion, the factor driving fintech adoption, the mediating effects of financial inclusion on perceived benefit-risk dynamics and fintech adoption, and the societal sustainability effects of fintech adoption. Design/methodology/approach This study used a quantitative study with 258 respondents in Sarawak, Malaysia. PLS-SEM was used to investigate the associations. Findings This study suggests that only non-monetary benefits and regulatory risks significantly influence financial inclusion. In addition, financial inclusion acts as an intermediary for non-monetary benefits and regulatory risks. Besides, a direct relationship exists between financial inclusion and fintech adoption, as well as between fintech adoption and societal sustainability. Research limitations/implications This model explores a few benefits and risks. Also, technological and legislative changes may alter research outcomes. Besides, this study only samples Sarawak, Malaysia. Therefore, country-specific factors, including technology infrastructure, financial services accessibility and cultural variations, may affect participant responses. This study offers a novel perspective on fintech by including Valence, Public Good and Sustainable Information Society theories. Practical implications Financial inclusion’s non-monetary benefits must be emphasised to remove barriers and meet user requirements. Fintech firms should also work with authorities to comply with regulations and help marginalised populations by prioritising sustainability. Social implications Fintech growth requires innovation, consumer protection and fair competition. Fintech firms can enhance financial inclusion to address inequalities (SDG10). Governments and fintech solutions should incorporate financial and digital literacy into education (SGG4). Originality/value Financial inclusion, fintech adoption and societal sustainability are examined using emotional, sociological and societal sustainability aspects.