The Influence of  Financial Behaviour on Financial Risk Tolerance In Investment Decision: A Conceptual Paper

Bunyamin, Mubarokah; Wahab, Norwazli Abdul

doi:10.15282/ijim.14.1.2022.7435

Cited by 1 publication

(1 citation statement)

References 32 publications

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“…Specifically, higher risk tolerance has been associated with consumers' adoption of robo-advisors (Fan and Chatterjee, 2020;Hong et al, 2020;Kim et al, 2019), mobile payment use (Li et al, 2020) and mobile investment trading (Fan, 2022). Among Asian consumers, risk-taking has also been associated with consumers' investment decision-making (Bunyamin and Wahab, 2022). Therefore, this study proposes a positive relationship between risk tolerance and fintech adoption.…”

Section: Risk Tolerancementioning

confidence: 85%

Using an extended post-acceptance framework to examine consumer adoption of fintech

Qi,

Chatterjee,

Worthy

et al. 2024

IJBM

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PurposeEmerging literature on fintech has shown that consumers have been slow to adopt fintech-based products and services. However, limited literature is available regarding the factors associated with consumers' adoption of these products and services. This study aims to investigate the factors that are associated with consumer adoption of fintech-based products and services.Design/methodology/approachData on the usage and perception of smartphone financial apps by US residents ages 18–70 was collected in the fall of 2020. Based on the Extended Post-Acceptance Model (EPAM) framework, Structural Equation Modeling and Confirmatory Factor Analysis were applied to inspect how financial capability, perceived security and perceived usefulness affect fintech adoption.FindingsFintech proficiency, investment risk tolerance and perceived safety are positively associated with the frequency of fintech application use upon adoption. Consumers are more likely to feel safer if they are more financially capable and technologically proficient. Consumers with higher risk tolerance tend to believe fintech apps are safe to use. Consumers with higher fintech proficiency are more likely to recognize the usefulness of fintech services.Originality/valueThe study introduces a revised EPAM framework with antecedent factors, fintech proficiency and risk tolerance to investigate the factors associated with consumer adoption of fintech-based products and services. The key findings of this study validate the EPAM in the American context. Additionally, this research is among the first to have confirmed the direct relationship between perceived security and fintech adoption. The results have practical implications for existing fintech companies, banks and financial institutions, policymakers and financial advisory practices considering adopting fintech-based services for their clients.

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