Fintech Service Research Articles

Artificial intelligence, financial services knowledge, government support, and user innovativeness: Exploring the moderated-mediated path to fintech adoption

Based upon an extended Technology Acceptance Model (TAM), this study aims to investigate the impact of financial services knowledge, familiarity with the use of artificial intelligence, government support, and user innovativeness on Fintech adoption from the perspective of university students. Furthermore, the study also aims to investigate the mediating role of user innovativeness in this relationship. A cross-sectional, survey-based method was used to collect data from 410 university students. Structural equation modeling was implied to examine the research framework of the study. The findings confirm that financial services knowledge, familiarity with artificial intelligence, government support, and user innovativeness have a direct positive impact on Fintech adoption among university students. The results also show that perceived ease of use slightly moderates the relationship between government support and user innovativeness. Meanwhile, results from the mediation analysis reveal an indirect effect of these variables on Fintech adoption through user innovativeness. The study's findings recommend practical suggestions to academic institutes and Fintech service providers to equip university students with the necessary financial knowledge and familiarity with artificial intelligence across various disciplines, which can be achieved through sufficient government support. All these can potentially revolutionize Fintech services adoption and boost economic growth, specifically in Asia-Pacific developing countries. The study identifies the key antecedents that affect the student's decision to adopt Fintech. It widens the scope of Fintech adoption by considering the university students who may serve as the future managers for the nation. It provides nuanced evidence on the role of financial services knowledge and familiarity with the use of artificial intelligence on the intention to adopt Fintech among university students in Asia-Pacific developing countries like Pakistan.

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.

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.

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 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.

Exploring and evaluating the development of an open application programming interface (Open API) architecture for the fintech services ecosystem

PurposeThe Open API (application programming interface) architecture will play an important role in promoting future FinTech service applications; however, it involves user data, and the current specialization and progression are less visible. Therefore, an evaluation framework for Open API development in the FinTech service ecosystem is constructed in this study.Design/methodology/approachThis study preliminarily selects the four most important key objects and factors of this ecosystem and conducts expert interviews to revise the evaluation framework. Then, this study uses the fuzzy analytic hierarchy process (FAHP) to evaluate the objects and their factor weights and finally uses the FAHP analysis results to further apply the evaluation based on distance from average solution (EDAS) approach to explore the strategy optimization scenarios.FindingsAccording to the analysis results, the co-creation object and productivity object are the two most significant objects, with weights of 0.275 and 0.272, respectively. The analysis shows that FinTech-related companies expect to increase productivity through co-creation. Finally, the results also indicate that mobile payment is the best Open API application scenario in the FinTech service ecosystem, followed by online banking. These results illustrate strategic and management implications.Originality/valueThis study screens key evaluation criteria with a literature review and expert questionnaire interviews to process quantitative research. It can determine the weights of objectives and criteria to clarify the strength of influence between the objectives and criteria. Next, this study measures the probable performance of Open API applied in various FinTech service ecosystem scenarios.

From engagement to retention: Unveiling factors driving user engagement and continued usage of mobile trading apps

The popularity of online mobile trading has led to an increase in the development of mobile stock trading applications. Despite this increase in popularity, there is a dearth of empirical studies that examine the factors influencing the continued usage intention of these applications (hereafter, apps). Drawing on stimulus-organism-response (S-O-R) theory, this paper investigates the features of stock trading apps that generate consumer engagement and consequently, continued app usage intention. In study 1, through semi-structured interviews, we establish four key drivers of customer engagement with stock trading apps, and two possible moderators influencing the relationship between customer app engagement and continued usage intention. In study 2, we examine these key drivers by surveying stock trading app users from three different Facebook stock trading communities. The results confirm that the social presence and security features of these apps are significantly associated with consumer stock trading app engagement. We also find that fear of uncertainty and perceived corporate hypocrisy weaken the effect of customer app engagement on continued app usage intention. The study findings add to the literature on app usage and customer engagement and provide insights for fintech service companies to help them understand the factors that enhance consumer engagement with these apps.

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.

FINTECH SERVICE BUSINESS IN INDIA TREND AND PRACTICE -A THEORETICAL OUTLOOK

Fintech (Financial Technology) an advance payment-based technology is a growing service in India. With the introduction of number of innovative payment platforms that are alternative to cash transactions, people are motivated to choose best of best payment options. Fintech technology adoption rate in India is noticed as 87 per cent compared to 64 per cent of the world average. Growth of fintech services is influenced by number of factors like: nation having huge underserved financially excluded population, rising youth population, educated and rapid urbanisation, easily available of workforce, supportive Government policies and scope for raising capital for investments. Digital payments and fintech service market is expected to grow multi-fold in the near future, with active support from the user, Government and financial institution. The financial market is found be less matured and large number of people are still uncovered by various financial service, through enhancing their knowledge on easy and safe mode of payment either for physical or online shopping or for money transfer with support the fintech services to growth in India. KEY WORDS: Fintech Services, Digital Payment, Financial Literacy of Fintech Service

A road toward green growth: Optimizing the role of mineral resources, fintech innovation and effective governance in G-20 economies

The concept of green economy is introduced in last few decades where it is viewed as a framework that brings justice in the form of less environmental risks and improved social welfare. Thus, green growth is now considered an effective economic strategy all across the world. On the other hand, industrial revolution also enlightens the role of financial sector which is viewed as a significant suitor of growth-driven society. However, conflicting environmentally-friendly project by financial means shove innumerable concerns that either financial market products/services comfort environment and nature. In addition to this, mineral resource abundance is also considered a positive sign for nation but compromised environment and nature makes it critical. Considering the scenario, the study makes an attempt to explore the association among fintech innovation, mineral resource utilization on green growth in the present of effective governance. The present study uses dataset spanning over a period of several years from 2004 to 2021 and concentrates on a balanced panel of G20 countries. Results obtained by FMOLS and DOLS exposed that natural resource utilization is not helpful in promoting green growth due to negative association. Results also proclaim that fintech is proved to be an effective strategy to promote green growth. Surprisingly, effective governance makes no effect on green growth. Hence, open avenues for researchers to explore the area further with other methods. Study implications enforce the idea that Fintech innovation not only reduces financial costs but also improves related services. Moreover, it also implies that there is a profound need of creating synergy during Fintech service development as it will help in the expansion of green investment and reduction of environmental risks, means, promising green growth.

Investment T rend o n Millennia ls a nd F intech F ra ud M itigation

Purpose: This study analyzed the effect of financial literacy, social media, risk perception, and investment willingness on millennials in Jakarta, Indonesia quantitatively. This paper also discusses fraud mitigation qualitatively about the investment trend among millennials. Design/methodology/approach: This type of research is a mixed method between a quantitative approach to see the investment trend, and a qualitative approach to see how to mitigate fraud in the use of fintech. The population in this study are millennials residing in Jakarta with social media accounts and interest in investment in conventional and Sharia capital markets, and how fintech fraud can be anticipated. Findings: This research proves that in the different research groups but the same demography, the independent variable (financial literacy, social media exposure, and risk perception) simultaneously has an influence on millennials' Intention to invest, but does not partially affect it. Fraud in fintech can be prevented through technology, education, and regulation that are continuously reviewed and improved to provide higher relevancy. Research limitations/implications: This research is limited to the investment trend and fintech fraud mitigation on millennials in Jakarta, the capital city of Indonesia. Future research requires a wider age range and demographic of respondents. Originality/value: Investment trends among millennials have a high potential for fraud. To prevent fraud, the association, regulator, and society must be aware of the fraud practice, and technological advancement, evaluating continuously the rewards and punishments of the fintech service.

The Influence of Perception, Trust, And Security on Fintech E-Wallet Services: The Case of The Z Generation in Yogyakarta

This research aims to examine the influence of perceived ease of use, perceived benefits, perceived risk, trust and security variables on the likelihood of using fintech e-wallet services. The population in this research is the Z generation residing in Sleman Regency, Indonesia. The data source used in this research is primary data using a quantitative approach. Sampling in this study used a purposive sampling technique, the number of samples used was 100 Z generation in Sleman Regency who used the Shopeepay e-wallet fintech service for transactions. In this research, the data was processed/tested using the IBM SPSS statistics 23 program. The results of the research show that partially the variables perceived ease of use and perceived benefits have a positive and significant effect on interest in using ShopeePay fintech e-wallet services among the Z generation in Sleman Regency, while the variables Perceptions of risk, trust and security do not have a significant influence on interest in using the fintech e-wallet service ShopeePay among the Z generation in Sleman Regency.

Fintech Service Quality of Saudi Banks: Digital Transformation and Awareness in Satisfaction, Re-Use Intentions, and the Sustainable Performance of Firms

The present study examined the effects of the service quality regarding fintech and customer satisfaction on the sustainable bank performance, with digital transformation and digital awareness as the mediator and moderator in the Saudi Arabian banks. Using an online survey questionnaire, data were collected from 306 customers and an equal number of customer care officers, resulting in a 62.58% response rate. The findings revealed that the tangibles, reliability, and empathy about the fintech services significantly influence customer satisfaction. However, assurance and responsiveness did not significantly influence customer satisfaction. The results also showed that customer satisfaction regarding fintech services significantly and positively influences the intention to re-use fintech services, indicating the centrality of maintaining a high customer satisfaction for retention. Interestingly, while the intention to re-use fintech was directly linked to the sustainable performance of banks, the direct impact of digital transformation on the performance was not significant. Additionally, digital awareness about using fintech services significantly and positively influences the sustainable bank performance. The study also tested the moderating effect of digital awareness between customer satisfaction and sustainable performance, but the relationship was not significant. By offering the study’s novel findings, this research underscores the implications of fintech adoption and its quality dimensions on bank performances in the Saudi context.

The influence of some fintech service on the performance of Islamic bank in Jordan

Islamic banking across the developing countries may undoubtedly become more prevalent thanks to financial technology, making it more competitive in the financial sector. The current study's goal is to extensively address fintech on Islamic banks and to examine the effect of fintech Services upon Islamic banking financial performance around Jordan. The investigation utilized a quantitative-descriptive survey approach. The study utilized annual data (panel data) which were acquired via financial institutions figures of the annual statements from the Jordan's Islamic Bank (JIB) registered with Amman Stock Exchange from 2017 to 2021. This investigation found Fintech services, such as internet banking, mobile banking, crowdfunding, and automated teller machines had a substantial effect on JIB's financial performance. The positive beta value suggests that there were favorable relationships among JIB's financial success from 2017 to 2021 on Fintech services. Finally, the study recommends that JIB increase its efforts to inform the public concerning Islamic banking services.

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.

Determinants of fintech adoption: evidence from SMEs in Indonesia

PurposeThis study aims to explore the factors that determine the perceived benefits and the perceived risks of financial technology (fintech) and to evaluate the influence of perceived benefits, perceived risks and small and medium-sized enterprises’ (SMEs') trust to continue using fintech.Design/methodology/approachThis study involves SMEs in Indonesia. Non-probability with a convenience sampling technique was used in this study.FindingsConvenience and economic benefits can explain the perceived benefits. Operational risk is stated as a risk factor felt by the respondents. Furthermore, the perceived benefits have a positive effect and the perceived risks show a negative effect on trust. At the same time, the individuals’ intention to continue using fintech is determined by trust.Research limitations/implicationsBased on the theory of reasoned action (TRA), various benefits and risks of using fintech are used to build the construction of perceived benefits and perceived risk in building trust that will determine decision to continue using fintech.Practical implicationsThis research can provide advice to managers to develop efficient payment systems, lower payment fee and error-free transactions. In addition, the fintech management needs to understand the risks related to operational risks that are a challenge for the users to decide to use fintech so that a reliable mechanism for using fintech can be developed. Furthermore, it will be useful for fintech developing companies as a reference in knowing the factors that influence users in continuing to use fintech, this allows fintech developing companies in Indonesia will be even more developed and accelerate the achievement of the Sustainable Development Goals.Originality/valueTo the best of the authors’ knowledge, research on the factors that affect the trust of SMEs in adopting fintech has not been conducted. This study can be advantageous for fintech service companies and organizers in developing fintech strategies in terms of users who are involved in SMEs which is the population in Indonesia is enormous and has a significant role in the development of the country.

Federated Learning- Hope and Scope

People are suffering from” data obesity” as a result of the expansion and quick development of various Artificial Intelligence (AI) technologies and machine learning fields. The management of the current techniques is becoming more challenging due to the data created in the Smart-Health and Fintech service sectors. To provide stable and reliable methods for processing the data, several Machine Learning (ML) techniques were applied. Due to privacy-related issues with the aforementioned two providers, ML cannot fully use the data, which becomes difficult since it might not give the results that were expected. When the misuse and exploitation of personal data were gaining attention on a global scale and traditional machine learning (CML) was facing difficulties, Google introduced the concept of Federated Learning (FL). In order to enable the cooperative training of machine learning models among several organizations under privacy requirements, federated learning has been a popular research area. The expectation and potential of federated learning in terms of smart-health and fintech services are the main topics of this research.

Adoption of digital payment FinTech service by Gen Y and Gen Z users: evidence from India

PurposeThis study aims to evaluate the users’ behavioral intention toward the acceptance and adoption of digital payment FinTech services in India. The study also compares the differences in Gen Y and Gen Z’s intention to adopt digital payment FinTech services.Design/methodology/approachThe present study adopted both the unified theory of acceptance and use of technology (UTAUT) and the technology acceptance model (TAM) as its theoretical base and also added financial literacy and customer satisfaction. The data was analyzed by applying structural equation modeling using SmartPLS 4.FindingsThe outcomes of the study imply that customer satisfaction, effort expectancy and performance expectancy had a significant effect on behavioral intention. Moreover, effort expectancy, performance expectancy and perceived enjoyment had a significant influence on customer satisfaction, and effort expectancy and performance expectancy is significantly influenced by perceived enjoyment, while self-efficacy significantly influenced perceived enjoyment. Also, financial literacy does not moderate the relationship between effort expectancy, performance expectancy, facilitating condition and behavioral intention. Furthermore, the association of effort expectancy → customer satisfaction; perceived enjoyment → customer satisfaction; and perceived enjoyment → effort expectancy is moderated by age factor.Originality/valueThis study contributes by developing a more cohesive and unified model for assessing users’ behavioral intention toward acceptance and adoption of FinTech services by adopting constructs from the UTUAT and TAM and incorporating financial literacy and customer satisfaction to expand and enhance the theoretical prospect of the existing literature.