Artificial intelligence (AI) in FinTech decisions: the role of congruity and rejection sensitivity

Abstract

PurposeThe digital revolution has changed consumer–service provider interaction, spawning a new generation of FinTech. This paper analyzes consumers' reactions to artificial intelligence (AI) (vs human) decisions.Design/methodology/approachThe authors tested their predictions by conducting two experimental studies with FinTech consumers (n = 503).FindingsThe results reveal that consumers' responses to AI (vs human) credit decisions depend on the type of credit product. For personal loans, the rejection by an AI provider triggers higher levels of satisfaction compared to a credit analyst. This effect is explained via the perceived role congruity. In addition, the findings reveal that consumers’ rejection sensitivity determines how they perceive financial services role congruity.Originality/valueTo the best of the authors' knowledge, this research is the first to jointly examine AI (vs human) credit decisions in FinTech and role congruity, extending prior research in the field.

Artificial intelligence algorithms and cloud computing technologies in blockchain-based fintech management

“…Peer-to-peer blockchain networks, decentralized financial systems, and virtual asset and financial data management (Almansour, 2023;Jareño & Yousaf, 2023;Lisha et al, 2023) enhance digital credit products and services, asset trading and monetization, and banking experiences (Babaei et al, 2023;Ha, 2023;Thomas et al, 2023) through cryptocurrency adoption and metaverse wallets. Generative AI and machine learning algorithms enable transaction and authorization processing, personalized financial advice, automated loan approvals, and seamless mobile banking (Campanella et al, 2023;Rjoub et al, 2023), improving operational efficiency in relation to customer profiling, credit and transaction history, lending practices, and spending patterns (Ahelegbey et al, 2023;He et al, 2023;Sharma et al, 2023b), flagging financial crime, fraud patterns, and risky investments through data management techniques (Gonçalves et al, 2023;Su & Xu, 2023;Tan et al, 2023).…”

“…Our analyses particularly prove that the fintech-based banking sector integrates blockchain technology across digital finance, cryptocurrencies, transaction services, and loan risk management (Rjoub et al, 2023), leading to innovative economic growth. As a result of perceived role congruity, with regard to personal loans, rejection by an AI fintech system (Gonçalves et al, 2023) brings about an increased degree of satisfaction relative to rejection by a credit analyst. Bank fintech improves corporate innovation by reducing the inhibitory consequences of financing limitations and management expenses (Tan et al, 2023): the positive effect is noticeable in companies having unsatisfactory financial endowments and private enterprises.…”

FinTech revolution in mineral management: Exploring the nexus between technology adoption and sustainable Resource utilization in an industry 4.0 context

“…Fintech as a buffer against climate change effects, blockchain technology research in social protection, Fintech in health care service provision, and other related topics were highlighted as emergent research areas. Two experimental tests were undertaken by Gonçalves et al [ 42 ] with FinTech customers to examine how they felt about receiving credit judgments from AIs instead of humans. Research shows that customers' reactions to AI credit choices vary by product.…”

The Effect of Leadership Styles on the Growth of Fintech Start-Ups in Zambia

“…Ref. [27] Gonçalves et al (2023) investigated consumers 'reactions to AI (vs. humans). Results show that customer responses to AI (vs. human) credit choices vary depending on the type of credit.…”