Factors Affecting the Intention to Use Financial Technology among Vietnamese Youth: Research in the Time of COVID-19 and Beyond

Abstract

This study focuses on understanding the factors that affect the intention of using financial technology among young Vietnamese in the context of the COVID-19 pandemic. Fintech studies are abundant in developed countries and mainly focus on consumers’ conditions, awareness, habits, and capital. These are expected to differ significantly from the situation in developing countries. We have reviewed factors that can affect the user’s intention, including the Perceived Benefit (PB), Perceived Risk (PR), Belief (B), and Social Influence (SI), and rely on the Technology Acceptance Model (TAM) and the Theory of Reasoned Action (TRA) model in this research. The survey sample comprises 161 Z-generation consumers with strong flexibility and knowledge about the use of Fintech. We use the PLS-SEM (partial least squares structural equation modeling) analysis method with the SmartPLS software (SmartPLS GmbH, Oststeinbek, Germany) to evaluate the research model. We find that the Perceived Benefit (PB) has the most significant impact on the intention to use Fintech, followed by Belief (B). However, in general, the factors are not significant, perhaps due to many reasons that are intrinsic in Vietnam. Based on this result, service providers, policymakers, and researchers can calibrate the development and research for the following stages. We offer findings different from the previous research, thus especially extending the literature on young people.

Mobile Banking Adoption among Asnaf for Efficiency in Zakat Management: Extended UTAUT2

“…Consistent with all models based on psychological theories, which assert that individual behaviour is predictable and influenced by individual intention (Allah Pitchay et al, 2020;Khuong et al, 2022;Rahi & Abd. Ghani, 2019;Yu, 2012), the Unified Theory of Acceptance and Usage of Technology (UTAUT) and the UTAUT2 support the notion that behavioural intention has a substantial impact on technology use (Venkatesh et al, 2003(Venkatesh et al, , 2012.…”

“…Amin et al (2008) discovered that an individual's behavioural intention to utilise mobile banking is influenced by their immediate surroundings, such as friends and family. Previous studies in a similar context also found that social influence significantly affects intention (Akhtar et al, 2019;Khuong et al, 2022;Mahfuz et al, 2016).…”

An exploratory review of the fintech influence field

“…Alshari and Lokhande (2022) analysed the influence of demographic factors on fintech services using a survey method and found that age does not have a significant effect on payment services, whereas gender, income and education have a significant impact, including on different aspects of customer behaviour. Khuong et al (2022) studied the attitudes of the Z generation (Vietnamese aged 18-24 years) towards the use of fintech technologies and found that perceived benefit and belief have the strongest influence on user intentions, although the relationship is not statistically significant enough. The two studies (Alshari & Lokhande, 2022;Khuong et al, 2022) were conducted in individual countries and may not reflect the behaviour of youth around the world; nonetheless, they point out that demographic differences and generational change are important for the development of fintech.…”

“…Khuong et al (2022) studied the attitudes of the Z generation (Vietnamese aged 18-24 years) towards the use of fintech technologies and found that perceived benefit and belief have the strongest influence on user intentions, although the relationship is not statistically significant enough. The two studies (Alshari & Lokhande, 2022;Khuong et al, 2022) were conducted in individual countries and may not reflect the behaviour of youth around the world; nonetheless, they point out that demographic differences and generational change are important for the development of fintech. Every business needs to understand the behaviour of the user to increase their loyalty to the company.…”

The Effect of Fintech and Internal Factors on Bank Financial Stability

“…Financial Technology has supported financial services in many companies and countries. Financial technology has become popular since the 1990s, with strong global developments in the financial industry [2]. The accelerated growth of technology around the world also has an impact on fintech-based business strategies.…”