Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 1

Discussion on Fintech Adoption Research Tewogbade Shakir I. I ntroduction inancial industry including its services and deliveries have witnessed rapid transformation in the recent years due to advancement in technological tools. The reasons are not far-fetched, as there are needs for readily available services that are fast, convenient and more efficient. More also, the combination of the financial services and technology has deepened financial inclusion at ease. Aside alternative digital channels provided by traditional banks to deliver fintech-like services, the common Fintech brands are Stripe (U.S), Coinbase (US), Monzo (UK), Revolut (UK) Flutterwave (Nigeria), Paystack (Nigeria), Lendingkart (India), Instamojo (India),Lufax (China), WeLab (China), Yoco (South Africa) and Zoona (South Africa).. Fintech is the deployment of technology to aid financial transactions such as payments, transfers and lending. They make financial services easier to use, cheaper in most cases, reliable and within consumers reach. Basically, adoption of Fintech will depend on degree of perceived benefits and perceived risk. Fintech services are readily adopted when the perceived benefits are greater than the perceived risk. Perceived benefits and perceived risks have been classified to different numbers by various researchers under various theories such as Technology Adoption Model (TAM), Elaboration likelihood Model (ELM), Unified Theory of Acceptance and Use of Technology (UTAUT), Theory of Reasoned Action (TRA) and Diffusion of Innovation Theory. Typical fintech adoption research will be carried out utilizing benefits such as ease of use, usefulness of services, financial/economic benefit such as pricing, social influence, speed of transaction (seamless) and convenience. Also, perceived risk is often considered under financial risk (loss of fund), regulatory risk (uncertainty in case of legal issues), security and privacy (how secured and vulnerable is the fintech platform and exposure of personal information) and operational risk (failure in system, processes). Combining the benefits and risks, benefit-risk system (valence level) is drawn to show level of Fintech adoption. Aside perceived risks, others mitigants in Fintech adoption is trust and fintech brand. Fintech adoption research is quantitative in approach while relationship among variables is explore numerically. Investigative hypotheses is developed along the research focus and they will be tested to show significant and non-significant relationships. Author: e-mail: pingcommercial@gmail.com Such investigative research does the following: 1. Confirm the rate at which Fintech services are adopted. 2. Identify differences between variables that influence the behaviour of fintech adoption. 3. Give full consideration to effect of perceived benefits and risks as they set disparity. 4. Bias in adoption of fintech services (payments, microlending, wealth management, insurance, health service, account opening and investments) at the expenses of others. 5. Ascertain constraints faced by financial consumers while they are using Fintech services. II. L iterature R eview and T heoretical B ackground As noted by Alt et al 2018, fintech exist when financial services are combined with delivering technologies. The overall aim is to coordinate activities and processes in a standardize manner such that intended financial tasks are performed efficiently. Many theories have been applied to justify adoption of Fintech among financial consumers such as Theory of reasoned action (TRA), Technology Acceptance Model (TAM), Diffusion Theory and Unified Theory of Acceptance and Use of Technology (UTAUT). Most researchers in the recent years focus more on UTAUT which has more power to absorb complex research questions and objectives. Review will be made of TAM model as one of the theories which were combined to invent UTAUT. Also, TRA, Theory of Planned Behaviour TPB and Theory of Perceived Risk are often integrated to justify constructs used for perceived risks in some research hypotheses. Diffusion Theory is itemized to actually reveal different levels of technology adopters and justify why everybody will not adopt technology at the same time. This can be used to study adoption behaviour and pattern. a) Technology Acceptance Model (TAM) The theory was developed by Fed Davis in 1989 in his doctoral thesis at MIT. TAM has been judged as the most widely used theory in Information System to back adoption of various innovation and invention in Financial Technology. The popularity and widely acceptance of the theory is due to the fact that the theory was particularly invented to study adoption and implementation of technology that financial transactions relied on. The whole system of the model is unambiguous and simple to use. Dave in his TAM F 19 Global Journal of Management and Business Research Volume XXII Issue I Version I Year 2022 ( ) A © 2022 Global Journals