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

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.

FinTech and Financial Inclusion: Exploring the Mediating Role of Digital Financial Literacy and the Moderating Influence of Perceived Regulatory Support

“…First, the results demonstrated that trust significantly and positively influenced the use of FinTech services (Hypothesis 1), concurring with prior research (Alrawad et al 2023;Amnas et al 2023;Savitha et al 2022;Wang et al 2019;Zarifis and Cheng 2022). This confirmation established the essential function that trust plays in promoting the utilization of FinTech platforms.…”

“…Among the primary determinants of users' attitudes and behaviors toward FinTech services, trust stands out as a fundamental factor (Zarifis and Cheng 2022). It contributes to user confidence, increases user loyalty, diminishes perceived risk, and promotes positive word-of-mouth (Amnas et al 2023;Savitha et al 2022;Wang et al 2019). Based on the empirical evidence, the following hypothesis was formulated.…”