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A model of trust in Fintech and trust in Insurtech: How Artificial Intelligence and the context influence it

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  • Zarifis, Alex
  • Cheng, Xusen

Abstract

Finance and insurance are being transformed by Artificial Intelligence (AI). Nevertheless, the consumer is not passive in this process and there is some inhibition to trust. This research models trust in Fintech and trust in Insurtech. The two models are then compared to evaluate if trust in both is similar. Multigroup Structural Equation Modelling is used to evaluate if the model is equally valid for Fintech and Insurtech. The model presented here shows that trust in both Fintech and Insurtech are formed by (1) Individuals psychological disposition to trust, (2) Sociological factors influencing trust, (3) Trust in either the financial organization or the insurer and (4) Trust in AI and related technologies. The results of the multigroup analysis show that the model is equally valid for Fintech and Insurtech. This is particularly useful as these services are often offered by the same organization, or even the same mobile application.

Suggested Citation

  • Zarifis, Alex & Cheng, Xusen, 2022. "A model of trust in Fintech and trust in Insurtech: How Artificial Intelligence and the context influence it," Journal of Behavioral and Experimental Finance, Elsevier, vol. 36(C).
    • Handle: RePEc:eee:beexfi:v:36:y:2022:i:c:s2214635022000661
    DOI: 10.1016/j.jbef.2022.100739
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jorge Andrés-Sánchez & Jaume Gené-Albesa, 2024. "Not with the bot! The relevance of trust to explain the acceptance of chatbots by insurance customers," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    2. Zhao, Haifeng & Khaliq, Nosherwan, 2024. "In quest of perceived risk determinants affecting intention to use fintech: Moderating effects of situational factors," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    3. Cristina Sbîrneciu & Nicoleta-Valentina Florea, 2023. "An exploratory case study: Romania’s digital innovation opportunities due to rise of digital currencies," Journal of Financial Studies, Institute of Financial Studies, vol. 14(8), pages 143-164, May.
    4. Pak-Lok Poon & Santoso Wibowo & Sau-Fun Tang, 2024. "A FinTech Clustering Framework: Technology, Model, and Stakeholder Perspectives," Papers 2412.05285, arXiv.org.
    5. Cosma, Simona & Rimo, Giuseppe, 2024. "Redefining insurance through technology: Achievements and perspectives in Insurtech," Research in International Business and Finance, Elsevier, vol. 70(PA).
    6. repec:fst:rfsisf:v:8:y:2023:i:14:p:143-164 is not listed on IDEAS
    7. Serkan Eti & Hasan Dinçer & Hasan Meral & Serhat Yüksel & Yaşar Gökalp, 2024. "Insurtech in Europe: identifying the top investment priorities for driving innovation," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-24, December.

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