What drives FinTech Adoption? A study on Perception, Adoption, and Constraints of FinTech Services

Abstract

Purpose: The digital transition has caused challenges in every industry and commercial sector. The progression of digitalization has also undoubtedly fostered the advent of FinTech (financial technology), which have been regarded as being among the most significant developments in the financial sector. The progress is moving forward swiftly in part because of the shared economy, legality, and information technology. FinTech provides a range of services, including electronic aggregators, trading, and insurance, funding, payment (including electronic wallets), and cryptocurrencies like Bitcoin. FinTech study has revealed hopeful results from academics in industrialized nations. This paper focuses on narrowing the research gap by investigating the factors that influence the adoption.

Design/Methodology/Approach: Researcher intended to find out the key drivers in adoption of FinTech, perception towards adoption and constraints; and planned to conduct structured surveys. The sample consists of: Clients of banks, professionals in academia, faculty, and postgraduate students in Central India. In the present study, hypotheses have been employed to examine the relationship among the variables- Technological attributes, Behavioral attributes and Behavioral Intentions through analytical tools. In order to test the statistical and substantive significance, primary data from 349 active Internet users has been collected through reliability tested scales and analyzed using SPSS 20.0 and AMOS 23.0.

 Findings:  The findings show that Technological Attributes and Behavioural Attributes are the main drivers that affect the adoption. The major determinants of behavioral intention to adopt FinTech services are readiness, recommendations and intend to use having a significant impact.  Hedonic Motivation (HM) have inconsiderable impact on adoption. Also, gender insignificantly affects the adoption of FinTech services.

 Practical implication: This study will aid fintech services providers in designing such services keeping in mind with a wide variety of probable users. Enhancing behavioural attributes for the adoption of FinTech services should receive greater attention. This will entice users for adoption which further attracts nonusers to initiate with the online financial transactions.

Value of Research: Incorporations of technological and behavioral attributes in the study and examining the mediating effect of behavioral intention and moderating effect of hedonic motivation and demographic characteristic adds a value to technology acceptance literature. It further adds value in understanding user perception drivers about adoption of FinTech services.