The Moderating Effect of Perceived Risk on Users’ Continuance Intention for FinTech Services (original) (raw)
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The Influence of Perceptions of Risks and Benefits on the Continuity of Use of Fintech Services
Brazilian Business Review
New technologies have been driving the global financial market, including fintech companies, which provide disruptive financial services in which information technology is the key factor. The objective of this study is to identify which factors most influence intentions to continue using these companies' products. To achieve this, research by Ryu (2018) was replicated. Our adopted model evaluates the weight of seven factors composing two latent variables-perceived risk and perceived benefit-in the continuity of use of these services. The data collection was performed through an electronic survey, distributed through social networks during May and June of 2019. The main results confirmed seven of the eleven initial hypotheses, highlighting that the perceived benefits, especially the economic ones, were relevant to early adopters and seamless transactions were relevant for late adopters. Surprisingly, perceived risk was not a determinant of continuance intention. One of the contributions of this study is that it indicates some possible demographic and behavioral characteristics of Brazilian fintech consumers, opening up space for a better understanding of the market and service improvements.
Perceived Risk Factors Affect Intention To Use FinTech
History Objective: Studies show there is a high acceptance of FinTech development in Malaysia. However, the perceived risk factors that hinder a user's intention to use FinTech remains vague. Research on perceived risk is limited, especially the use of FinTech in the context of Malaysia. Therefore, this study aims to narrow the gap in perceived risk factors of FinTech. Methodology: A total of 302 participants participated in the study. Collected data and hypotheses were tested using the method of structural equation modeling. Results: It is found that three of the four dimensions of financial risk, legal risk and operational risk have a significant negative impact on the intention to use FinTech. The findings found that security risks do not have a significant negative effect on the intention to use FinTech. This result is consistent with the finding that Malaysian consumers' perception of e-payment is not significantly related to perceived security. Implication: The results help practitioners better conceptualize and reduce risk barriers in preparing for the disruption of FinTech. Practitioners are also advised to pay attention to FinTech's operational skills and system functional performance in FinTech services.
2019
The expansion of information technology (IT) has become a great challenge in the business world today. Benefits from IT investment are only realized through sustained usage, rather than initial acceptance. Therefore, designing strategies continuously attracting user retention is the most critical and general question in IT global market. This paper aims to develop an integrated model that combines two wellknown theories expectation confirmation theory (ECT) and self-determination theory (SDT) to determine customer’s continuance intention toward use internet banking.A total number of 398 customers of commercial banks participated in this research. The research model was empirically tested using structural equation modeling. The findings reveal that both ECT and SDT have significant influence in a customer’s continuance usage intention. The integrated model has good explanatory power (76.3%) to predict customer’s continuance intention toward use of internet banking. Additionally, importance performance matrix analysis indicates that intrinsic regulation and customer’s satisfaction are the most important factors to determine internet banking user’s continuance intention. Internet banking users will be intrinsically motivated only for those activities that generate intrinsic interest for them, activities that have the charm of novelty, challenge or aesthetic significance. Thus, understanding banking customer intrinsic values should be a priority for managers and policymakers. Theoretically, integration of two well-known theories, ECT and SDT, provide basis for further refinement of technology continuance model in emerging e-payment domain. This study is different from several traditional studies that had investigated initial acceptance of internet banking. In contrast, this study provides a comprehensive analysis of customer’s behavior in continuance intention context with technology (ECT) and motivational factors (SDT).
Factors Affecting Continuance Intention of FinTech Payment among Millennials in Jakarta
European Journal of Business and Management Research
The background of this research is related to a phenomenon of millennials who prefer to change their financial behavior into cashless transactions from cash-based transactions. Factors of benefits (economic benefits, seamless transactions, and convenience) and risks (financial risks, legal risks, security risks, and operational risks) experienced by millennials are examined to observe their effects on the continuance intention of financial technology (FinTech) payment. FinTech users are classified into two types, namely early adopters and late adopters. This study examines the variables of continuance intention of FinTech payment, economic benefits, seamless transactions, convenience, financial risks, legal risks, security risks, operational risks, perceived benefits, and perceived risks simultaneously and is the first to be conducted on millennials in Jakarta. The methodology used was the Structural Equation Modeling-Partial Least Square. The data were collected through questionnai...
Journal of Consumer Sciences
The advancement of mobile devices and their usage has increased the uptake of fintech innovation. These new technologies should provide ease of use and give advantages to their customers. On the other side, mobile application security threats have increased tremendously and have become a great challenge for both users, in this case, as customers, and fintech innovators. Meanwhile, service should be promoted to the customers to establish fintech's brand to society. This research empirically examined the components affecting the expectations of users to adopt fintech. By collecting 100 samples who have already used a couple of brands of Fintech and Sakuku as their payment method, and by utilizing Structural Equation Modeling- Partial Least Square (SEM-PLS) as the technique of analysis, the empirical results definitely confirmed that perceived ease of use (PEOU) and promotion positively and significantly affected the customer trust. Meanwhile, security did not significantly affect ...
Continuance intentions to use FinTech peer-to-peer payments apps in India
Heliyon, 2022
The purpose of the present study is to identify the determinants of continuance intentions to use FinTech peer-to-peer (P2P) payment apps in India. Design: A cross-sectional survey of 463 FinTech users was carried out during the pandemic with the help of a digital questionnaire. The study has empirically tested an extended expectancy confirmation model and theory of acceptance to examine the determinants of continuance intentions to use FinTech P2P payment apps. Findings: We demonstrate that confirmation of prior expectations and post-adoption perceived usefulness determine continuance intention to use FinTech payment services. Cognitive acceptance (trust) and normative acceptance (social influence) not only determine behavioural acceptance (willingness to co-create) but also influences continuance intentions. Confirmation of initial expectations during service use determines satisfaction and post-purchase perceived usefulness. Practical implications: The continuous use of FinTech P2P services can be ensured by fulfilling users' post-purchase expected benefits, fostering trust, and social influence. These can be achieved by gearing up internal resources to provide customized experiences that meet customers' expectations and facilitate fruitful interactions. Only if the mobile experience is accessible and meets the expectations of customers, they would appreciate its performance and value in the offerings leading to extensive use of FinTech P2P services. Originality/value: The present paper is based on extended ECM and the theory of acceptance that aim to explain continuance intention to use FinTech P2P payments. The study findings add to the limited body of research in the context of FinTech P2P payments.
European Economics Letters, 2022
Purpose-The purpose of this research is to study the drivers affecting banking consumers' insights towards the adoption of FinTech services provided by banks. Research Methodology-Data for the study was collected through a structured questionnaire which received 212 responses, for the analysis and hypothesis testing Structural Equation Modelling approach has been used. Findings-This study demonstrates that using banking Fintech services is positively impacted by financial attitude and behaviour. The findings imply that favourable circumstances will arise from users having sound financial behaviour and attitudes because this will increase respondents' attitudes toward utilising FinTech services Practical implications-The results suggest that the government should focus on financial literacy, which will raise the level of financial behaviour and attitude resulting in an upsurge in the adoption of digital banking services. Originality/Value-This study is an attempt to identify the drivers resulting in a positive association towards the adoption of FinTech services provided by banks.
Extending the Role of Technology Acceptance Model (TAM) with Perceived Risk and E-Customer Service
Technology has developed very rapidly, including technology in the financial world called Financial Technology (Fintech). One of the FinTech products in the online loan sector is Tunaiku. In Tunaiku transactions, there are always issues about high-security risks and lack of quality in customer service, which causes reduced customer satisfaction. Therefore, this study analyzes financial technology's customer satisfaction with the Tunaiku application case study in Greater Jakarta, Indonesia. This research used Extending of Technology Acceptance Model (TAM) with Perceived Risk and E-Customer Service. This research's variables are Customer Satisfaction and Intention to Use as dependent variables, while Perceived Risk, Customer Service, Perceived Usefulness, and Perceived Ease of Use as independent variables. This study population has ever used the Tunaiku application, and 127 respondents met these criteria. Data collection was done by distributing questionnaires online. A Partial Least Square-Structural Equation Model (PLS-SEM) was analyzed using SmartPLS. There are six accepted hypotheses, and one hypothesis is rejected: Perceived Ease of Use on Customer Satisfaction. The result indicates that Customer Satisfaction and Customer Service have a significant influence on Intention to Use. Therefore, Tunaiku must improve Customer Service and reduce security risks by providing much information on its applications, web, and social media.
Essential Drivers of Payment Gateway Continuance Intention: The Moderating Role of Usage Rate
Journal of Economics, Business, & Accountancy Ventura
This study aims to analyze the effect of functional and economic benefit on theperceived value of payment gateway, elaborate the role of perceived value, subjective norm, and behavior control on continuance intention, and identify the moderating role of usage rate on the relationship. The study employed Partial Least Squares to test the proposed model and corresponding hypotheses. Using the purposive sampling technique, the data collection was from 460 survey samples of Fintech payment gateway users in Indonesia. Analysis data used Two-step SEM, inner model, and outer model analysis. The findings showed that functional and economic benefits influence the perceived value of payment gateway. Moreover, perceived value, subjective norm, and behavioral control effects continuance intention. This study shows the importance of the moderating role of usage level on the relationship of subjective norm and perceived behavior control with continuance intention on payment gateway. This study re...
Examining customers’ continuance intentions towards internet banking usage
Marketing Intelligence & Planning, 2017
Purpose The purpose of this paper is to identify factors that affect continuance intention towards internet banking usage using the institutional trust theory. Design/methodology/approach Data were collected from 481 internet banking users from a bank in Ghana using a questionnaire. The respondents were internet banking users. Data were analysed using partial least square-structural equation modelling. Findings The results from the analysis revealed that information quality, service quality, privacy and security concerns were significant predictors of both trust and satisfaction. Structural assurance and situational normality were also found to significantly affect trust. Other factors that were found to be significant of continuance intention included satisfaction and trust. Originality/value Studies investigating customers’ continuance intention towards internet banking usage using the institutional trust theory in an emerging economy like Ghana is rare. Hence, this study provides...