Understanding the Determinants of FinTech Adoption: Integrating UTAUT2 with Trust Theoretic Model

Muhammed Basid Amnas, Murugesan Selvam, Mariappan Raja, Sakthivel Santhoshkumar and Satyanarayana Parayitam ()
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Muhammed Basid Amnas: Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, India
Murugesan Selvam: Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, India
Mariappan Raja: Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, India
Sakthivel Santhoshkumar: Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, India
Satyanarayana Parayitam: Department of Management and Marketing, Charlton College of Business, University of Massachusetts Dartmouth, Dartmouth, MA 02745, USA

JRFM, 2023, vol. 16, issue 12, 1-23

Abstract: Financial technology (FinTech) is transforming the financial services industry by offering innovative, convenient solutions for businesses and individuals. This study examines the factors influencing FinTech adoption, with a special focus on trust. By integrating insights from both the unified theory of acceptance and use of technology (UTAUT2), and the trust theoretic model (TTM), this research uncovers critical determinants of FinTech adoption. Utilizing survey responses obtained from 399 participants, this research employs the partial least squares structural equation modelling method. The findings reveal that performance expectancy, effort expectancy, social influence, habit, price value, and facilitating conditions significantly influence users’ intentions to use FinTech services. In addition, the study shows that trust plays a crucial role in FinTech use, as it influences both the intentions to use and the actual use of FinTech. Surprisingly, hedonic motivation was found not to affect users’ intentions, implying that people see FinTech as a practical, rather than enjoyable, endeavor. These insights provide valuable guidance for service providers and policymakers seeking to enhance FinTech adoption and utilization while ensuring the security and trustworthiness of these digital platforms.

Keywords: FinTech; trust; adoption; UTAUT2; trust theoretic model (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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