Understanding FinTech Platform Adoption: Impacts of Perceived Value and Perceived Risk

Abstract

FinTech platforms are one of the most important elements in the rapidly digitized world’s economy. This study investigates the factors that affected individuals’ acceptance of FinTech services, especially on internet wealth management platforms. The current research extends the unified theory of acceptance and use of technology (UTAUT) published by MIS Quarterly with integrated financial consumption attributes (i.e., perceived value and perceived risk) alongside the core construct of UTAUT. Data were collected from an established survey company. The empirical results indicate that perceived value, perceived risk, and social influence are strongly related to individuals’ FinTech adoption intention, whereas performance expectancy, effort expectancy, and perceived risk affect individuals’ perceived value, which in turn influences adoption intention. The proposed FinTech adoption model could contribute to information technology (IT) adoption research by extending the UTAUT in which individuals’ performance expectancy and effort expectancy affect their adoption intention indirectly through perceived value. Finally, the implications of the proposed new model for future research and FinTech practice are discussed.

Factors influencing the adoption intention of using mobile financial service during the COVID-19 pandemic: the role of FinTech

“…To date, various studies have been conducted in sociology, psychology, and information system research to determine the factors that influence an individual’s ICT adoption behavior (Xie et al 2021 ). During the last three decades, several theoretical strategies have been employed in the study of technology adoption.…”

“…The adoption of FinTech technologies is mostly determined by contextual factors like social influence, risk, and trust (Al Nawayseh 2020 ; Ryu 2018 ; Senyo and Osabutey 2020 ; Stewart and Jürjens 2018 ; Xie et al 2021 ). However, the majority of past studies on the adoption of FinTech has concentrated on technological variables and ignored the social determinants (Hu et al 2019 ; Senyo and Osabutey 2020 ; Shaikh et al 2020 ; Xin et al 2015 ).…”

“…As previously stated, the “received” aspect of perceived value represents the value that users can derive from the MFS platform. The PE indicates the adoption of individuals based on their desire for external incentives (Venkatesh et al 2003 ), the “received” component of perceived value (Xie et al 2021 ). Previous studies indicated that the concept of PE such as usefulness has a positive impact on perceived value (Kim et al 2007 ; Xie et al 2021 ).…”

“…The financial sector has been recently transformed due to technological advances in Information and Communication Technologies (ICT), resulting in more effective and creative delivery of services. On the other hand, financial technology (FinTech) has enabled consumers to access innovative financial services, such as online payment, mobile financial services, savings and investments, budgeting and financial planning, peer-to-peer lending, and crowdfunding (Xie et al 2021 ), as the connection of digital technologies and the financial industry deepens (Jiang et al 2018 ). Besides, FinTech provides the financial sector and the public in making their daily transactions more affordable, convenient, and secure (Chen et al 2019 ; Puschmann 2017 ).…”

“…The Unified Theory of Acceptance and Use of Technology (UTAUT) (Venkatesh et al 2012 ) has been widely used as the baseline model to comprehend the adoption intention of individuals toward new technologies, such as FinTech (Al Nawayseh 2020 ; Khatun & Tamanna 2020 ; Xie et al 2021 ), mobile banking (Baptista and Oliveira 2015 ), blockchain (Kabir and Islam 2021 ; Queiroz and Fosso Wamba 2019 ), and online banking (Sharma et al 2020 ). To bridge the aforementioned research gap, this study proposed an MFS adoption framework during the COVID-19 pandemic by combining the consumption attributes of financial services like the perceived value with additional contextual aspects from the extended valence framework such as trust and risk, through the use of the basic constructs of the UTAUT.…”