THE IMPACT OF FINTECH INNOVATIONS ON CONSUMER BEHAVIOR: UNDERSTANDING THEIR TRUST, ADOPTION, AND FINANCIAL DECISION-MAKING

Abstract

Fintech, or financial technology, has revolutionized the way financial services offer consumers convenience and effectiveness in managing their finances. Little research has examined the factors that influence the adoption of fintech technologies. Considering the limited research on fintech innovation as a gap, this study aimed at understanding the impact of fintech innovations on consumer behavior through the moderating and mediating role of trust, adoption, and financial decision-making. The sample size was determined to be 228 based on the Krejcie and Morgan (1970) sample size determination table, whereas data was collected through a validated set of Likert questionnaires for fintech innovation, consumer behavior, trust, adoption, and financial decision-making. Data has been analyzed using Excel and SPSS, whereby regression analysis has been applied along with necessary descriptive statistics and normality. This study is guided by positivist philosophy along with inductive reasoning to develop arguments. The ANOVA result shows that there is a significant correlation between Fintech Innovation and Consumer Behavior, the result also shows that there is a non-significant correlation between Trust and Fintech and Financial Decision-making. It is concluded that the adoption of Fintech innovations positively influences consumer behavior. Trust in Fintech platforms as a mediating variable between Fintech adoption and financial decision-making has been found to be non-significant. Further, it is concluded that consumer trust as a moderator is non-significant for the correlation between fintech innovations and financial decision-making. These findings negate the available literature and open new avenues for research in the field of fintech innovation. More importantly, this study also highlights the importance of qualitative inquiries, such as grounded and phenomenological inquiries, to understand the subjective and individual-level variations considering the adoption of fintech technologies.