Adoption of Fintech in Malaysia: An Analysis of Security, Innovation, and Perceived Benefits

Wan Razazila Wan Abdullah and Ili Noor Amalina Binti Hisamudin
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Wan Razazila Wan Abdullah: Faculty of Accountancy, Universiti Teknologi MARA, Perak Branch, Tapah Campus, 35400, Tapah Road, Perak, Malaysia
Ili Noor Amalina Binti Hisamudin: Faculty of Accountancy, Universiti Teknologi MARA, Selanfor Branch, Puncak Alam Campus, 42300, Bandar Puncak Alam, Selangor, Malaysia

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 10, 2643-2658

Abstract: The rapid advancements of Industrial Revolution 4.0 have transformed various aspects of daily life, particularly in financial technology (Fintech). While Fintech offers benefits such as time efficiency, transaction flexibility, and service convenience, security risks associated with mobile applications remain a significant concern for both users and innovators. As the demand for secure digital financial solutions grows, driven by a tech-savvy population, innovations such as advanced encryption technologies and the widespread adoption of mobile apps and digital wallets have enhanced the security and trustworthiness of online transactions. This study aims to explore the key factors influencing Fintech usage from the perspective of individuals, with a focus on a youthful, tech-savvy population in Klang Valley, Malaysia. Data was collected through an online survey of 300 respondents and analyzed using SPSS (Version 27) through descriptive and multiple regression methods. The results indicate that security, innovativeness, and perceived benefits are significant predictors of Fintech usage in Klang Valley, Malaysia. These findings suggest that financial institutions play a pivotal role in promoting digital literacy and fostering greater Fintech adoption. Furthermore, the government should accelerate improvements in ICT infrastructure, expand mobile broadband access, support Fintech start-ups, provide regulatory sandboxes, and encourage financial institutions to develop innovative solutions for underserved populations. These insights are valuable for regulators, policymakers, financial institutions, and the public, highlighting the importance of building user trust through enhanced security measures and promoting the practical benefits of Fintech services. Future research should examine additional factors such as financial literacy and regulatory awareness, and longitudinal studies could offer a deeper understanding of the evolving role of Fintech in daily life.

Date: 2024
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