Adoption of fintech in banking sector

Abstract

The main aim of this study is to investigate the determinants (Financial literacy, trust, perceived usefulness, and social influence) of FinTech adoption intention by banking customers in Kathmandu metropolitan city. The target population of the study is all banking customers who belongs to Kathmandu metropolitan city and in this study, 336 sample size has been used with the assistance of purposive sampling technique. The data are collected with the assistance of primary survey by using structured questionnaires. For this study, the causal and descriptive research methodology has been applied. Likewise, the descriptive statistics are calculated through used of SPSS version 25.0 while the inferential statistics are calculated through use of PLS-SEM method of SMART-PLS version 4.2. The findings of this research specified that, four out of four paths is significant with pvalue

smaller than 0.05, therefore that this all four path is significant in 95 percent confidence interval and positive influence in ITAF. Besides, Trust is the most influential variable which affects intentions to adopt FinTech and perceived usefulness. This indicates that users (bank clients) of FinTech at Kathmandu metropolis city believe that, the FinTech service needs to be made trustable and secure. If the providers of FinTech are able to deliver trustable service, then the FinTech is useful for users. The most important drivers of intention to adoption of FinTech are trust, perceived usefulness, social influence, and financial literacy, respectively. Therefore, the policy makers and FinTech providers should be interested in creating useful and trustworthy FinTech service to increase the adoption rate. Furthermore, they should provide contribution to create financially literate consumer in order to decrease negative social influence and increase adoption rate of FinTech product and service. Keywords: Social Influence, Financial Literacy, Trust, Banking Sectors Sector, PLSSEM.