Understanding the Determinants of FinTech Adoption Intention: Integrating UTAUT2 and Financial Literacy with Mediating Role of Attitude

Abstract

The study aims to figure out the key determinants that influence intention of consumers to adopt FinTech services in a developing country like Pakistan by extending the lens of Unified Theory of Acceptance and Use of Technology2 (UTAUT2) model. Financial literacy is kept as an additional independent variable while using attitude as a mediator and demographic variables like age, gender, experience and risk taking behavior are introduced as moderators. Data was being gathered through a structured questionnaire and purposive sampling technique was being employed that resulted in 200 valid responses from FinTech users. A five point likert scale was used to measure the constructs, followed by an analysis using Smart PLS for Structural Equation Modeling and SPSS for descriptive statistics. Results highlight that all the independent variables in the study have significant impact on attitudes towards FinTech and eventually strongly influencing adoption intention. Attitude fully mediates the relationship between all predictors and adoption intention. In addition to that, various moderating effects were also confirmed. The conceptual model explained 68.1% of variance in attitude while adoption intention had 59.8% thereby indicating considerable explanatory power of model. The findings of the study provide support (empirical) for the extended UTAUT2 model thereby highlighting the significance of financial literacy and tailoring of demographics. This research is very useful for stakeholders like FinTech developers, marketers and policy makers in order to tailor and enhance inclusion of digital financial strategies in the emerging markets like Pakistan.