Exploring the Determinants of FinTech Adoption Among University Students: A Second-Order Construct Analysis

Razaz Houssien Felimban () and Latifa Saad Alzahrani
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Razaz Houssien Felimban: Department of Economics and Finance, College of Business Administration, Taif University, P.O. Box 11099, Taif 21944, Saudi Arabia
Latifa Saad Alzahrani: Department of Management Information Systems, College of Business Administration, Taif University, P.O. Box 11099, Taif 21944, Saudi Arabia

Sustainability, 2025, vol. 17, issue 22, 1-24

Abstract: How individuals and organizations interface with the digital economy has been largely influenced by transformations ushered in on the global financial map by the rapidly expanding Financial Technology (FinTech). This paper seeks to shed light on the successes of FinTech, namely on how it contributed to sustainability through financial inclusion, reduction in reliance on cash and the promotion of an innovation-driven economy known for being paperless. Based on contributions from students at Taif University in Saudi Arabia, determinants of FinTech adoption intentions are analyzed using data from n = 544. Our study focuses on evaluating the effects of financial, technical and external factors on adoption behavior by using a two-prong approach: first, we use the DeLone and McLean IS Success Model; then we employ a Second-Order Construct using Structural Equation Modelling (SEM). The results indicated that the strongest effects on attitudes stem from technical factors—information, system and service quality. Additionally, they also show that adoption intention is considerably shaped by financial as well as external dimensions. The Saudi Vision 2030 has set national goals of digital transformation, financial inclusion and human capital empowerment. This study provides a modest contribution to those goals by fostering FinTech adoption among the youth. Furthermore, its findings also offer educators, policymakers and Fintech providers a platform to enhance literacy, strengthen trust and develop sustainable digital finance ecosystems in line with the Kingdom’s Vision 2030 objectives.

Keywords: FinTech adoption; structural equation modeling (SEM); second-order constructs; vision 2030; Saudi Arabia; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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