IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i10p2643-2658.html
   My bibliography  Save this article

Adoption of Fintech in Malaysia: An Analysis of Security, Innovation, and Perceived Benefits

Author

Listed:
  • Wan Razazila Wan Abdullah

    (Faculty of Accountancy, Universiti Teknologi MARA, Perak Branch, Tapah Campus, 35400, Tapah Road, Perak, Malaysia)

  • Ili Noor Amalina Binti Hisamudin

    (Faculty of Accountancy, Universiti Teknologi MARA, Selanfor Branch, Puncak Alam Campus, 42300, Bandar Puncak Alam, Selangor, Malaysia)

Abstract

The rapid advancements of Industrial Revolution 4.0 have transformed various aspects of daily life, particularly in financial technology (Fintech). While Fintech offers benefits such as time efficiency, transaction flexibility, and service convenience, security risks associated with mobile applications remain a significant concern for both users and innovators. As the demand for secure digital financial solutions grows, driven by a tech-savvy population, innovations such as advanced encryption technologies and the widespread adoption of mobile apps and digital wallets have enhanced the security and trustworthiness of online transactions. This study aims to explore the key factors influencing Fintech usage from the perspective of individuals, with a focus on a youthful, tech-savvy population in Klang Valley, Malaysia. Data was collected through an online survey of 300 respondents and analyzed using SPSS (Version 27) through descriptive and multiple regression methods. The results indicate that security, innovativeness, and perceived benefits are significant predictors of Fintech usage in Klang Valley, Malaysia. These findings suggest that financial institutions play a pivotal role in promoting digital literacy and fostering greater Fintech adoption. Furthermore, the government should accelerate improvements in ICT infrastructure, expand mobile broadband access, support Fintech start-ups, provide regulatory sandboxes, and encourage financial institutions to develop innovative solutions for underserved populations. These insights are valuable for regulators, policymakers, financial institutions, and the public, highlighting the importance of building user trust through enhanced security measures and promoting the practical benefits of Fintech services. Future research should examine additional factors such as financial literacy and regulatory awareness, and longitudinal studies could offer a deeper understanding of the evolving role of Fintech in daily life.

Suggested Citation

  • Wan Razazila Wan Abdullah & Ili Noor Amalina Binti Hisamudin, 2024. "Adoption of Fintech in Malaysia: An Analysis of Security, Innovation, and Perceived Benefits," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(10), pages 2643-2658, October.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:10:p:2643-2658
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-10/2643-2658.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/adoption-of-fintech-in-malaysia-an-analysis-of-security-innovation-and-perceived-benefits/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Viswanath Venkatesh, 2000. "Determinants of Perceived Ease of Use: Integrating Control, Intrinsic Motivation, and Emotion into the Technology Acceptance Model," Information Systems Research, INFORMS, vol. 11(4), pages 342-365, December.
    2. Peter Gomber & Jascha-Alexander Koch & Michael Siering, 2017. "Digital Finance and FinTech: current research and future research directions," Journal of Business Economics, Springer, vol. 87(5), pages 537-580, July.
    3. Alam, Md. Mahmudul & Awawdeh, Ala Eldin & Bin Muhamad, Azim Izzuddin, 2021. "Using E-Wallet for Business Process Development: Challenges and Prospects in Malaysia," OSF Preprints y7zds, Center for Open Science.
    4. Nurhaiyyu Abdull Hamid & Khadijah Suria & Nur Syuhada Jasni & Khairul Anuar Mohd Salleh, 2024. "Fintech in Malaysia: Navigating Challenges and Shaping a Digital Future," Accounting and Finance Research, Sciedu Press, vol. 13(1), pages 1-42, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carolin Bock & Sven Siebeneicher & Jens Rockel, 2022. "The “C” in crowdfunding is for co-financing: exploring participative co-financing, a complement of novel and traditional bank financing," Journal of Business Economics, Springer, vol. 92(9), pages 1559-1602, November.
    2. Riccardo Reith & Maximilian Fischer & Bettina Lis, 2020. "Explaining the intention to use social trading platforms: an empirical investigation," Journal of Business Economics, Springer, vol. 90(3), pages 427-460, April.
    3. Wenzel, Stefan, 2014. "App'ification of Enterprise Software - Evaluating Mobile App Characteristics Enabling Online Purchase And Their Portability To Enterprise Application Software," EconStor Preprints 146785, ZBW - Leibniz Information Centre for Economics.
    4. Mustafa Raza Rabbani & Shahnawaz Khan & Eleftherios I. Thalassinos, 2020. "FinTech, Blockchain and Islamic Finance: An Extensive Literature Review," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 65-86.
    5. Wu, WenTing & Chen, XiaoQian & Zvarych, Roman & Huang, WeiLun, 2024. "The Stackelberg duel between Central Bank Digital Currencies and private payment titans in China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    6. Nicole D. Sintov & P. Wesley Schultz, 2017. "Adjustable Green Defaults Can Help Make Smart Homes More Sustainable," Sustainability, MDPI, vol. 9(4), pages 1-12, April.
    7. Irina Heimbach & Oliver Hinz, 2018. "The Impact of Sharing Mechanism Design on Content Sharing in Online Social Networks," Information Systems Research, INFORMS, vol. 29(3), pages 592-611, September.
    8. Jascha-Alexander Koch & Michael Siering, 2019. "The recipe of successful crowdfunding campaigns," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 661-679, December.
    9. Yu Wang & Shanyong Wang & Jing Wang & Jiuchang Wei & Chenglin Wang, 2020. "An empirical study of consumers’ intention to use ride-sharing services: using an extended technology acceptance model," Transportation, Springer, vol. 47(1), pages 397-415, February.
    10. Mäntymäki, Matti & Salo, Jari, 2013. "Purchasing behavior in social virtual worlds: An examination of Habbo Hotel," International Journal of Information Management, Elsevier, vol. 33(2), pages 282-290.
    11. Bilgihan, Anil & Barreda, Albert & Okumus, Fevzi & Nusair, Khaldoon, 2016. "Consumer perception of knowledge-sharing in travel-related Online Social Networks," Tourism Management, Elsevier, vol. 52(C), pages 287-296.
    12. Le Sun & Congmou Zhu & Shaofeng Yuan & Lixia Yang & Shan He & Wuyan Li, 2022. "Exploring the Impact of Digital Inclusive Finance on Agricultural Carbon Emission Performance in China," IJERPH, MDPI, vol. 19(17), pages 1-18, September.
    13. Song, Quanyun & Li, Jie & Wu, Yu & Yin, Zhichao, 2020. "Accessibility of financial services and household consumption in China: Evidence from micro data," The North American Journal of Economics and Finance, Elsevier, vol. 53(C).
    14. Cong Cheng & Hongfang Cui, 2024. "Combining digital and legacy technologies: firm digital transformation strategies—evidence from Chinese manufacturing companies," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    15. Gallego-Losada, María-Jesús & Montero-Navarro, Antonio & García-Abajo, Elisa & Gallego-Losada, Rocío, 2023. "Digital financial inclusion. Visualizing the academic literature," Research in International Business and Finance, Elsevier, vol. 64(C).
    16. Jascha-Alexander Koch & Jens Lausen & Moritz Kohlhase, 2021. "Internalizing the externalities of overfunding: an agent-based model approach for analyzing the market dynamics on crowdfunding platforms," Journal of Business Economics, Springer, vol. 91(9), pages 1387-1430, November.
    17. repec:dgr:rugsom:04f04 is not listed on IDEAS
    18. Rodríguez-López, María Eugenia & Higueras-Castillo, Elena & Rojas-Lamorena, Álvaro J. & Alcántara-Pilar, Juan Miguel, 2024. "The future of TV-shopping: predicting user purchase intention through an extended technology acceptance model," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    19. Globisch, Joachim & Dütschke, Elisabeth & Schleich, Joachim, 2018. "Acceptance of electric passenger cars in commercial fleets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 122-129.
    20. Xiaohong Wu & Ivan Ka Wai Lai, 2022. "The use of 360-degree virtual tours to promote mountain walking tourism: stimulus–organism–response model," Information Technology & Tourism, Springer, vol. 24(1), pages 85-107, March.
    21. Seiler, Volker & Fanenbruck, Katharina Maria, 2021. "Acceptance of digital investment solutions: The case of robo advisory in Germany," Research in International Business and Finance, Elsevier, vol. 58(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:8:y:2024:i:10:p:2643-2658. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.