Factors affecting customers' adoption of fintech services in traditional banks

Abstract

This study tackles the pressing matter of barriers to the adoption of fintech services within the traditional banking sector from the consumer’s perspective. In a financial landscape increasingly permeated by technology, fintech stands out as a pivotal innovation tool. Despite being in its developing phase, many experts contend that fintech will play a definitive role in sculpting the future of finance. Academics have delved into the integration of information technology in financial services, yet the exploration of fintech's impact on consumer adoption behavior remains limited. Thus, this study seeks to find the reasons behind consumer willingness or reluctance to embrace fintech services. It does so by weaving together the Technology Acceptance Model (TAM), the Diffusion of Innovation Theory (DOI), and a Trust component within a crafted conceptual framework. Data was gathered through an online survey disseminated among banking customers, capturing a sample size of 100 individuals selected for this investigation. Analytical results from the survey indicate that, from a total of 17 hypothesized relationships, 10 garnered support while 7 were rejected. The pivotal discoveries highlight that consumer Attitude towards fintech services and Compatibility stand as the principal factors driving the intent to adopt fintech services. These are complemented by the Complexity and the Trialability of fintech services. Furthermore, the study unveiled that Relative Advantage and Observability hold minimal sway over this intent. Regarding the intermediary variables of Perceived Usefulness, Perceived Ease of Use, and Trust in fintech services, it is Perceived Usefulness and Trust that exhibit a considerable mediating effect on the hypothesized relationship. Overall, this study has effectively merged the principles of DOI, and the TAM, along with the Trust factor, within the realm of fintech services, aiming to predict bank consumers' behavioral intentions towards adopting these. The developed conceptual model could offer valuable insights for practitioners to enhance the uptake of fintech services among banking customers.