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Sustainable Development of Fintech: Focused on Uncertainty and Perceived Quality Issues

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  • Hyun-Sun Ryu

    (College of Software, Sungkyunkwan University, Gyeonggi-do 16219, Korea)

  • Kwang Sun Ko

    (Finance IT & FinTech Practice Group, Kim & Chang, Seoul 03170, Korea)

Abstract

Despite high expectations for the growth of Fintech, it has not reached the expected growth in the real world. As Fintech is innovative but inherently unpredictable, customers are still hesitant to adopt and use Fintech, which ultimately affects its growth. To achieve the sustainable development and growth of Fintech, an in-depth investigation of Fintech continuance intentions is required. To investigate continuous-use behavior in a Fintech context, this study focuses on two relevant issues: uncertainty and information technology (IT) quality. Uncertainty is more critical in Fintech than in traditional e-banking transactions because Fintech transactions are complicated and less predictable. IT quality is also crucial to Fintech success because IT plays a key role in Fintech transactions. This study mainly explores the relationship between uncertainty and IT quality, both of which significantly affect Fintech continuance intentions. For the purpose, we integrated an IT quality–based perspective with a trust-based model to investigate Fintech continuance intentions. Our results demonstrate that system quality is negatively related to perceived risk, whereas information quality is positively related to trust. Service quality is the most important quality factor for controlling uncertainty and encouraging continued use of Fintech. We found a more extended role of IT in Fintech than in other digital services. This study provides Fintech providers with the practical guidance in the design and implementation of Fintech innovation, thereby achieving the sustainable development of Fintech.

Suggested Citation

  • Hyun-Sun Ryu & Kwang Sun Ko, 2020. "Sustainable Development of Fintech: Focused on Uncertainty and Perceived Quality Issues," Sustainability, MDPI, vol. 12(18), pages 1-18, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:18:p:7669-:d:414786
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    9. Roberto Moro-Visconti & Salvador Cruz Rambaud & Joaquín López Pascual, 2020. "Sustainability in FinTechs: An Explanation through Business Model Scalability and Market Valuation," Sustainability, MDPI, vol. 12(24), pages 1-24, December.
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    13. Khaled Mahmud & Md. Mahbubul Alam Joarder & Kazi Muheymin-Us-Sakib, 2022. "Adoption Factors of FinTech: Evidence from an Emerging Economy Country-Wide Representative Sample," IJFS, MDPI, vol. 11(1), pages 1-27, December.
    14. Luiz Antonio Joia & Joaquim Pedro Vasconcelos Cordeiro, 2021. "Unlocking the Potential of Fintechs for Financial Inclusion: A Delphi-Based Approach," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
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    18. Linn Arnell & Emma Engström & Gazi Salah Uddin & Md. Bokhtiar Hasan & Sang Hoon Kang, 2023. "Volatility spillovers, structural breaks and uncertainty in technology sector markets," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-31, December.
    19. Nancyprabha Pushparaj & V. J. Sivakumar & Manoraj Natarajan & A. Bhuvaneskumar, 2023. "Two decades of DeLone and Mclean IS success model: a scientometrics analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 2469-2491, June.
    20. Hossain, Mohammad Razib & Rao, Amar & Sharma, Gagan Deep & Dev, Dhairya & Kharbanda, Aeshna, 2024. "Empowering energy transition: Green innovation, digital finance, and the path to sustainable prosperity through green finance initiatives," Energy Economics, Elsevier, vol. 136(C).
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    22. Javier Sada Bittini & Salvador Cruz Rambaud & Joaquín López Pascual & Roberto Moro-Visconti, 2022. "Business Models and Sustainability Plans in the FinTech, InsurTech, and PropTech Industry: Evidence from Spain," Sustainability, MDPI, vol. 14(19), pages 1-21, September.

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