A Structural analysis of factors driving Fintech Adoption in promoting Financial Inclusion

Abstract

Fintech has become a disruptive technology in the financial services industry, an innovative, affordable, and user-friendly technology that encourages better financial inclusion. The paper evaluates the determinants of Fintech services adoption, their subsequent effects on financial inclusion among adult people in Hyderabad, Telangana, India. The study is based on Technology Acceptance Model (TAM) and Social Cognitive Theory and is aimed at testing the impact of perceived usefulness, perceived ease of use, self-efficacy, and perceived risk on adoption behavior. The respondents were instructed to complete a structured online questionnaire presented to 250 respondents based on purposive and snowball sampling methods. Data analysis was performed with the help of SPSS (v.26) and Structural Equation Modeling (SEM). Findings suggest that the perceived usefulness has low, but significant impact whereas perceived ease of use and self-efficacy are more influential determinants of adoption. There is also a positive impact of perceived risk, meaning that users can still adopt Fintech irrespective of concerns. Moreover, the research found that financial inclusion is, most vividly, a strong factor of Fintech adoption.