IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v207y2024ics0040162524003974.html
   My bibliography  Save this article

In quest of perceived risk determinants affecting intention to use fintech: Moderating effects of situational factors

Author

Listed:
  • Zhao, Haifeng
  • Khaliq, Nosherwan

Abstract

This paper seeks to fill a notable gap in the current literature by exploring the perceived risks linked to the integration of financial technology (fintech) in the context of Pakistan. Despite the evident progress in fintech, customer apprehension persists. There were 210 participants in this study. This study examined the information using the structural equation modeling method. According to empirical outcomes, Time risk (β = 0.274) emerges as the most significant among the five risk categories, increasing perceived risk, followed by financial risk (β = 0.214), security risk (β = 0.203), social risk (β = 0.151), and performance risk (β = 0.140). However, the Intention to use fintech was negatively influenced by perceived risk (β = −0.284). Situational factors are essential while functioning as a moderator. The results aid professionals in refining their understanding and mitigating risk thresholds when strategizing for potential fintech disruptions. Recommendations include a focus on enhancing operational fintech skills and practical framework performance in fintech services. Fintech service providers can prioritize strategies that address time risk and mitigate overall perceived risk, while policymakers can create frameworks that promote transparency and address user concerns to encourage wider fintech adoption.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:tefoso:v:207:y:2024:i:c:s0040162524003974
    DOI: 10.1016/j.techfore.2024.123599
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162524003974
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2024.123599?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Le, TN-Lan & Abakah, Emmanuel Joel Aikins & Tiwari, Aviral Kumar, 2021. "Time and frequency domain connectedness and spill-over among fintech, green bonds and cryptocurrencies in the age of the fourth industrial revolution," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    2. Kashif Abbass & Halima Begum & A. S. A. Ferdous Alam & Abd Hair Awang & Mohammed Khalifa Abdelsalam & Ibrahim Mohammed Massoud Egdair & Ratnaria Wahid, 2022. "Fresh Insight through a Keynesian Theory Approach to Investigate the Economic Impact of the COVID-19 Pandemic in Pakistan," Sustainability, MDPI, vol. 14(3), pages 1-20, January.
    3. Huarng, Kun-Huang & Yu, Tiffany Hui-Kuang, 2022. "Causal complexity analysis for fintech adoption at the country level," Journal of Business Research, Elsevier, vol. 153(C), pages 228-234.
    4. Sheth, Jagdish, 2020. "Impact of Covid-19 on consumer behavior: Will the old habits return or die?," Journal of Business Research, Elsevier, vol. 117(C), pages 280-283.
    5. Kabengele, Christian & Hahn, Rüdiger, 2021. "Institutional and firm-level factors for mobile money adoption in emerging markets–A configurational analysis," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    6. Groß, Michael, 2016. "Impediments to mobile shopping continued usage intention: A trust-risk-relationship," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 109-119.
    7. Zobeidi, Tahereh & Komendantova, Nadejda & Yazdanpanah, Masoud, 2022. "Social media as a driver of the use of renewable energy: The perceptions of instagram users in Iran," Energy Policy, Elsevier, vol. 161(C).
    8. Wenxiang Zhang & Saeed Siyal & Samina Riaz & Riaz Ahmad & Mohd Faiz Hilmi & Zhi Li, 2023. "Data Security, Customer Trust and Intention for Adoption of Fintech Services: An Empirical Analysis From Commercial Bank Users in Pakistan," SAGE Open, , vol. 13(3), pages 21582440231, July.
    9. James Andreoni & Charles Sprenger, 2012. "Risk Preferences Are Not Time Preferences," American Economic Review, American Economic Association, vol. 102(7), pages 3357-3376, December.
    10. Barakat, Ahmed & Hussainey, Khaled, 2013. "Bank governance, regulation, supervision, and risk reporting: Evidence from operational risk disclosures in European banks," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 254-273.
    11. Debenedetti, Alain, 2021. "Luxury stores as home-like places: How domestic meanings are staged and mobilized in luxury retail," Journal of Business Research, Elsevier, vol. 129(C), pages 304-313.
    12. Hussein Ahmed Al-Shari & M. A. Lokhande, 2023. "The relationship between the risks of adopting FinTech in banks and their impact on the performance," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2174242-217, December.
    13. Alain Debenedetti, 2021. "Luxury stores as home-like places: How domestic meanings are staged and mobilized in luxury retail," Post-Print hal-03171771, HAL.
    14. Andrey Zahariev & Petya Ivanova & Galina Zaharieva & Krasimira Slaveva & Margarita Mihaylova & Tanya Todorova, 2023. "Interplay between CSR and the Digitalisation of Bulgarian Financial Enterprises: HRM Approach and Pandemic Evidence," JRFM, MDPI, vol. 16(9), pages 1-18, August.
    15. Mohamed Bouteraa & Brahim Chekima & Nelson Lajuni & Ayesha Anwar, 2023. "Understanding Consumers’ Barriers to Using FinTech Services in the United Arab Emirates: Mixed-Methods Research Approach," Sustainability, MDPI, vol. 15(4), pages 1-22, February.
    16. Gregor Dorfleitner & Lars Hornuf & Julia Kreppmeier, 2023. "Promise not fulfilled: FinTech, data privacy, and the GDPR," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-29, December.
    17. Ruzita Abdul-Rahim & Siti Aisah Bohari & Aini Aman & Zainudin Awang, 2022. "Benefit–Risk Perceptions of FinTech Adoption for Sustainability from Bank Consumers’ Perspective: The Moderating Role of Fear of COVID-19," Sustainability, MDPI, vol. 14(14), pages 1-24, July.
    18. Dominici, Andrea & Boncinelli, Fabio & Gerini, Francesca & Marone, Enrico, 2021. "Determinants of online food purchasing: The impact of socio-demographic and situational factors," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    19. Vincenzo Bavoso, 2022. "Financial Intermediation in the Age of FinTech: P2P Lending and the Reinvention of Banking," Oxford Journal of Legal Studies, Oxford University Press, vol. 42(1), pages 48-75.
    20. 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).
    21. Belk, Russell W, 1975. "Situational Variables and Consumer Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 2(3), pages 157-164, December.
    22. Muhammad Umer Niaz, 2022. "Socio-Economic development and sustainable development goals: a roadmap from vulnerability to sustainability through financial inclusion," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 3243-3275, December.
    23. Tang, Kin Leong & Ooi, Chee Keong & Chong , Jia Bao, 2020. "Perceived Risk Factors Affect Intention To Use FinTech," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 6(2), pages 453-463, June.
    24. Elsayed, Ahmed H. & Nasreen, Samia & Tiwari, Aviral Kumar, 2020. "Time-varying co-movements between energy market and global financial markets: Implication for portfolio diversification and hedging strategies," Energy Economics, Elsevier, vol. 90(C).
    25. Edward Shih-Tse Wang & Ruenn-Lien Lin, 2017. "Perceived quality factors of location-based apps on trust, perceived privacy risk, and continuous usage intention," Behaviour and Information Technology, Taylor & Francis Journals, vol. 36(1), pages 2-10, January.
    26. Liu, Jiajia & Li, Xuerong & Wang, Shouyang, 2020. "What have we learnt from 10 years of fintech research? a scientometric analysis," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    27. Christian Haddad & Lars Hornuf, 2023. "How do fintech start-ups affect financial institutions’ performance and default risk?," The European Journal of Finance, Taylor & Francis Journals, vol. 29(15), pages 1761-1792, October.
    28. Sunita Guru & Jitendra Nenavani & Vipul Patel & Nityesh Bhatt, 2020. "Ranking of perceived risks in online shopping," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(2), pages 137-152, June.
    29. Rahmani, Amir & Mashayekh, Javad & Aboojafari, Roohallah & Bonyadi Naeini, Ali, 2023. "Determinants of households' intention for investment in renewable energy projects," Renewable Energy, Elsevier, vol. 205(C), pages 823-837.
    30. Egi Arvian Firmansyah & Masairol Masri & Muhammad Anshari & Mohd Hairul Azrin Besar, 2022. "Factors Affecting Fintech Adoption: A Systematic Literature Review," FinTech, MDPI, vol. 2(1), pages 1-13, December.
    31. Yoonyoung Hwang & Sangwook Park & Nina Shin, 2021. "Sustainable Development of a Mobile Payment Security Environment Using Fintech Solutions," Sustainability, MDPI, vol. 13(15), pages 1-15, July.
    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. Chunling Li & Nosherwan Khaliq & Leslie Chinove & Usama Khaliq & Judit Oláh, 2023. "Consumers’ Perception of Risk Facets Associated With Fintech Use: Evidence From Pakistan," SAGE Open, , vol. 13(4), pages 21582440231, October.
    2. Gigliotti, Marina & Rizzi, Francesco, 2023. "Resilient shopping behaviours by change, not by chance: are disruptive events’ effects permanent?," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    3. Haifeng Zhao & Nosherwan Khaliq & Chunling Li & Judit Oláh, 2024. "In quest of perceived transaction cost’s impact on fintech users’ intention: the moderating role of situational factors," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    4. Zhao, Yang & Goodell, John W. & Dong, Qingli & Wang, Yong & Abedin, Mohammad Zoynul, 2022. "Overcoming spatial stratification of fintech inclusion: Inferences from across Chinese provinces to guide policy makers," International Review of Financial Analysis, Elsevier, vol. 84(C).
    5. Kvalsvik, Fifi, 2022. "Understanding the role of situational factors on online grocery shopping among older adults," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    6. Santiago Carbó‐Valverde & Pedro J. Cuadros‐Solas & Francisco Rodríguez‐Fernández & José Juan Sánchez‐Béjar, 2024. "Digital innovation and de‐branching in the banking industry: Customer perception and satisfaction," Global Policy, London School of Economics and Political Science, vol. 15(S1), pages 8-20, March.
    7. Elsayed, Ahmed H. & Naifar, Nader & Nasreen, Samia & Tiwari, Aviral Kumar, 2022. "Dependence structure and dynamic connectedness between green bonds and financial markets: Fresh insights from time-frequency analysis before and during COVID-19 pandemic," Energy Economics, Elsevier, vol. 107(C).
    8. Ziadat, Salem Adel & Mensi, Walid & Al-Kharusi, Sami & Vo, Xuan Vinh & Kang, Sang Hoon, 2024. "Are clean energy markets hedges for stock markets? A tail quantile connectedness regression," Energy Economics, Elsevier, vol. 136(C).
    9. Elshaer, Ibrahim A. & Alrawad, Mahmaod & Lutfi, Abdalwali & Azazz, Alaa M.S., 2024. "Social commerce and buying intention post COVID-19: Evidence from a hybrid approach based on SEM – fsQCA," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    10. Debenedetti, Alain & Chaney, Damien, 2024. "From feeling like home to being at home: The negative outcomes of attachment to commercial places," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    11. Ellen Van Droogenbroeck & Léon Van Hove, 2021. "Adoption and usage of E-grocery shopping: A context-specific UTAUT2 model," ULB Institutional Repository 2013/324918, ULB -- Universite Libre de Bruxelles.
    12. Mensi, Walid & Naeem, Muhammad Abubakr & Vo, Xuan Vinh & Kang, Sang Hoon, 2022. "Dynamic and frequency spillovers between green bonds, oil and G7 stock markets: Implications for risk management," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 331-344.
    13. Jean-Baptiste Welté & Julien Cayla & Bernard Cova, 2022. "The intimacy trap: Navigating the commercial friendships of luxury," Post-Print hal-04103608, HAL.
    14. Gaoyong Li & Xin Zhang & Ge Zhang, 2022. "To Use or Not to Use: It Is a Question—An Empirical Study on the Adoption of Mobile Finance," Sustainability, MDPI, vol. 14(17), pages 1-23, August.
    15. Welté, Jean-Baptiste & Cayla, Julien & Cova, Bernard, 2022. "The intimacy trap: Navigating the commercial friendships of luxury," Journal of Business Research, Elsevier, vol. 145(C), pages 649-659.
    16. Ibrahim Mutambik, 2023. "Customer Experience in Open Banking and How It Affects Loyalty Intention: A Study from Saudi Arabia," Sustainability, MDPI, vol. 15(14), pages 1-20, July.
    17. Thanh Ha, Le & Bouteska, Ahmed & Harasheh, Murad, 2024. "Dynamic connectedness between FinTech and energy markets: Evidence from fat tails, serial dependence, and Bayesian approach," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 574-586.
    18. Alain Debenedetti & Déborah Philippe & Delphine Dion, 2024. "Balancing exclusivity and inclusivity through the strategic domestication of the luxury retail experience," Post-Print hal-04593576, HAL.
    19. Umar, Zaghum & Hadhri, Sinda & Abakah, Emmanuel Joel Aikins & Usman, Muhammad & Umar, Muhammad, 2024. "Return and volatility spillovers among oil price shocks and international green bond markets," Research in International Business and Finance, Elsevier, vol. 69(C).
    20. Chan, Haksin & Yang, Morgan X. & Zeng, Kevin J., 2022. "Bolstering ratings and reviews systems on multi-sided platforms: A co-creation perspective," Journal of Business Research, Elsevier, vol. 139(C), pages 208-217.

    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:eee:tefoso:v:207:y:2024:i:c:s0040162524003974. 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: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    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.