Through a comprehensive examination of various perception factors, such as perceived usefulness, ease of use, and trust, alongside capability factors encompassing financial literacy and
INTRODUCTION
Research background and statement of the problem
The financial services industry is undergoing a significant transformation driven by technological innovations known as Financial Technology (FinTech), which are reshaping traditional banking norms As consumers demand more efficient and enhanced experiences, there is a noticeable shift from conventional payment methods to innovative FinTech solutions This impact is highlighted by the rise of approximately 12,000 startups and global investments surpassing $19 billion in 2015, which soared to over $50 billion between 2010 and 2015.
Research indicates that FinTech services create a new paradigm marked by increased personalization, flexibility, and efficient delivery of financial services This transformation boosts productivity, improves profitability, and enhances accessibility to financial services, as highlighted in the 2017 PWC report.
The financial services industry is evolving beyond traditional e-banking and digitization, prioritizing a consumer-centric approach that integrates innovative technologies to meet users' financial needs (EY, 2016) FinTech services are poised to enhance efficiency, mitigate risks, and foster inclusive growth, signaling significant transformations in the financial landscape (RBI Report, 2018) Technological advancements are reshaping conventional business models in this highly regulated sector, offering differentiated customer experiences through user-friendly designs, real-time insights, and greater transparency (Leong et al., 2017) Since 2015, global awareness and adoption of FinTech services have surged, achieving a 64% adoption rate, particularly in countries like China and India, which exhibit an impressive 87% adoption rate (EY FinTech Adoption Index, 2019).
The overall growth in FinTech adoption reveals a clear trend of selective service uptake, with money transfer and payment services leading the way These services dominate the global adoption landscape, representing a significant 50% of users, as highlighted in the EY FinTech Adoption Index (2016).
The duality in FinTech adoption highlights concerns and potential barriers, necessitating a thorough investigation into the factors influencing consumer perceptions and acceptance This study aims to explore the antecedents of consumer perceptions regarding FinTech services, focusing on drivers of actual use and retention Existing research has not conclusively identified the attributes affecting FinTech acceptance and usage, with many studies examining customer behavior from an engineering perspective Recognizing that user willingness is crucial for technology adoption, this research advocates for a comprehensive model to clarify key perceptions and motivations across various FinTech services By leveraging established technology adoption theories, the proposed framework integrates perceptions of ease of use and usefulness with the technological attributes of FinTech interfaces, impacting user intention and actual usage FinTech, defined as the application of technological innovations in financial services, significantly influences the banking industry, presenting both opportunities and challenges, particularly in digital banking payment services The rise of FinTech has created competition for traditional banks, especially with the global focus on mobile banking apps during the industrial revolution 4.0, yet empirical studies on their impact on banking performance, particularly in Vietnam, remain limited.
In the era of the 4th industrial revolution, examining the impact of mobile banking applications on banking indicators is essential This research utilizes multivariate panel regression and tools like STATA 14 and Excel to test hypotheses regarding correlations between FinTech innovations and bank performance It highlights the importance of FinTech as a blend of innovative business models and technological solutions that enhance everyday financial services (Amer, Barberis, and Buckley, 2015).
FinTech originally referred to the technical applications used by banks and financial institutions in their service delivery (Vietnam Microfinance Working Group, 2018) However, since the late 2000s, it has expanded to encompass various sectors such as payments, savings, investments, asset management, blockchain, credit, peer-to-peer lending, insurance, and data analysis (Stewart & Jiirjens, 2018; Wonglimpiyarat, 2017; Datta, 2011; Donner & Tellez, 2008) In recent years, FinTech has emerged as a significant global trend, particularly in Vietnam, where non-banking technology companies are steadily growing within the financial and banking markets The term "FinTech" now also describes technology firms focused on developing software solutions that facilitate or provide alternative banking services, emphasizing convenience, speed, and cost-effectiveness (Vietnam Microfinance Working Group, 2018; Romanova & Kudinska).
Vietnam, with a dynamic population of 93 million, offers a highly conducive environment for FinTech growth The extensive smartphone penetration, with 84% of users in urban areas and 68% in rural regions, enhances the potential for FinTech innovation In 2017, Vietnam's FinTech market was valued at 4.4 billion USD and is projected to rise to 7.8 billion USD by 2020, indicating significant opportunities for investment and development in this sector.
While FinTech has positively impacted Vietnam's economy, there is still a significant lack of research regarding customers' intentions to utilize FinTech services This study aims to address this gap and provide insights into consumer behavior in the FinTech sector.
This study systematically identifies and examines the factors that influence the intention to use FinTech services among the young generation in Vietnam It highlights an underexplored area in existing research, providing valuable insights into the unique context of Vietnam's evolving financial technology landscape.
Research objectives
This research aims to explore the factors influencing customer decision-making in adopting fintech solutions within today's volatile, uncertain, complex, and ambiguous (VUCA) environment It focuses on how perception and capability affect customers' willingness to embrace fintech offerings, enhancing our understanding of technology adoption in the evolving financial landscape By highlighting the intricate relationship between perception, capability, and the VUCA context, the study seeks to provide insights that can guide the creation of targeted strategies to boost fintech adoption, ultimately contributing to a more resilient and customer-centric financial ecosystem.
This research will conduct a thorough analysis of the perception and capability factors that impact customers' decision-making in adopting fintech solutions It will explore customer attitudes, perceived value, usability, and trust in these technologies, alongside their technological capabilities and readiness The study aims to understand how these factors interact to influence fintech adoption decisions Ultimately, the research intends to provide actionable insights for stakeholders to effectively navigate the volatile, uncertain, complex, and ambiguous (VUCA) landscape, enhancing customer adoption of fintech solutions.
Research questions
• Which factors affect the user adoption and use of fintech in the VUCA context?
• How much do these factors affect users' adoption of fintech and innovativeness in the VUCA era?
• How can technology advancements be utilized to address VUCA challenges and enhance fintech adoption and user innovativeness?
• What suggestions can we suggest to improve the fintech adoption and innovativeness of users in the case of the VUCA era?
• Based on the findings, what actionable recommendations can be proposed to stakeholders in the financial industry to foster fintech adoption and innovativeness among users during the VUCA era?
Subject and scope of research
The subject of this research is how perception and capability factors affect user adoption and innovativeness of fintech in the context of the vucA era.
Data collection involved administering online questionnaires to 400 Fintech users in Ho Chi Minh City, aged 17 to 35, with varying educational backgrounds from high school to postgraduate The purposive sampling ensured a balanced representation of male and female participants, while also categorizing the sample based on monthly income into four groups: under 4 million, 4-7 million, 7-10 million, and over 10 million Participants were given the option to choose from popular fintech services such as Mobile Payments, Peer-to-Peer Lending, and Crowdfunding, or to self-identify other frequently used services.
The survey lasted for about two weeks in 2024 (from 9 January 2024 to 23 January
2024) and was conducted using online forms created on the Google Forms platform whereas the research was totally done in 3 months, from November of 2023 to January of2024.
Research method
The study utilized a mixed-methods approach, employing both qualitative and quantitative techniques to gather data through online platforms such as Zalo, Instagram, and Messenger The research process is structured into two primary phases: the first phase involved collecting data from existing local and international studies and developing a Vietnamese-language survey questionnaire The subsequent quantitative phase focused on administering a questionnaire featuring closed-ended questions rated on a 5-point Likert scale, where responses ranged from 1 for "strongly disagree" to 5 for "strongly agree," with data analysis conducted using SPSS.
20 and Smart PLS 4 will be used to process the gathered information.
Meaning of research
Some theoretical and practical contributions resulting from this study are summarized as follows:
This research aims to explore how perception and capability factors influence customers' decisions to adopt financial technology (fintech) solutions in a volatile, uncertain, complex, and ambiguous (VUCA) environment By examining the intricate dynamics of these elements, the study seeks to uncover the various dimensions that shape customer choices regarding fintech innovations during challenging times.
This article emphasizes the importance of providing consumers with thorough guidance and support to effectively implement conceptual frameworks related to fintech adoption By enhancing their understanding of these concepts and offering practical tools, consumers are more likely to move from theoretical knowledge to making informed purchasing decisions in the fintech space.
Research structure
Chapter 1 - INTRODUCTION: This chapter outlines the topic's urgency, broad objectives, targeted goals, research subjects and scope, research methodologies, theoretical and practical significance, and research structure.
Chapter 2 - LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT:
This section explores the theoretical foundations of how perception and capacity considerations influence fintech adoption decisions It aims to establish a basis for discussion and the development of a research model by examining relevant hypotheses and previous research frameworks.
Chapter 3 - RESEARCH METHOD: The research process, measuring scale building, and analysis and measurement of research topics are covered in this chapter along with qualitative and quantitative research methods.
Chapter 4 - DATA ANALYSIS AND RESULTS: This section includes the research findings, survey sample details, model validation, and concept measurement information It assesses and scrutinizes the outcomes acquired.
Chapter 5 - DISCUSSION AND CONCLUSION: The research findings are summarized in this last section, which also highlights the study's limits and contributions in relation to real-world applications It also makes recommendations for future study directions.
CHAPTER 1 - SUMMARY: In Chapter 1, the authors have provided an overview of the fundamental aspects of the research problem This includes outlining the context and motivations, establishing both general and specific objectives, discussing the methodology, and highlighting the practical significance of the research paper Importantly, the chapter effectively communicates the direction and primary issues addressed in the research paper. s
LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
Definitions
Luhmann (1988) describes fintech as an innovative financial service heavily reliant on information technology, particularly within non-financial companies The Office of the Financial Services Authority (OJK) emphasizes that fintech can significantly improve the efficiency and accessibility of financial services through technology The fintech landscape is rapidly evolving, featuring various service categories such as Peer-to-Peer (P2P) Lending, Crowdfunding, and Mobile Payments Additionally, emerging fintech innovations like Robo Advisors, Blockchain, and Information and Feeder Sites are simplifying the acquisition and utilization of financial products and services for consumers.
Technological advancements in fintech are crucial for enhancing various financial services, including payment methods, fund transfers, loans, and asset management This global phenomenon has garnered attention from innovators, academics, and regulators, as fintech embodies technology-driven financial services and innovative business models In summary, fintech represents innovations aimed at improving the process, delivery, and utilization of financial services (Mention, 2019).
Since its introduction by Citigroup in 1990, fintech has lacked a universally accepted definition among researchers Some scholars, like Freedman (2006), define fintech as a framework for modeling, pricing, and processing financial products, while Ernst and Young (2019) describe it as organizations that combine innovative business models with technology to enhance financial services Additionally, other researchers consider fintech a component of innovation and digital transformation, with Amer et al (2015) characterizing it as the technology-enabled process of financial solutions, and Lee and Kim (2015) emphasizing its role in developing and implementing new financial software that influences traditional systems.
Fintech is increasingly recognized as a division within enterprises that leverages innovative technology to provide financial software solutions, as noted by Chuen and Teo (2015) This perspective is echoed by Amer et al (2015), who highlight that fintech transcends specific business models or sectors, encompassing a wide range of financial products and services More recent definitions, such as that from Gai et al (2018), describe fintech as a technology-driven division focused on improving service quality and operational efficiency Additionally, the Financial Stability Board (2019) emphasizes that fintech represents technological innovations that enhance market access, introduce new products, and lower costs for consumers.
Fosl (2020) found that the growth of fintech in emerging economies is driven by unmet financial service needs, and its adoption is anticipated to improve financial inclusion.
The rise of fintech in certain countries is driven by the high costs of traditional financial services, supportive regulatory environments, and various macroeconomic factors Furthermore, younger demographics are more inclined to adopt fintech solutions, which can enhance financial inclusion and efficiency, ultimately leading to economic benefits.
Hu et al (2019) enhanced the Technology Acceptance Model (TAM) by introducing additional factors like user innovation and government support to explain fintech adoption in China Their structural equation modeling (SEM) analysis demonstrated a significant relationship between brand image, government support, and user acceptance.
The adoption of fintech innovations is significantly influenced by behavioral intentions, including perceived ease of use and perceived usefulness, as highlighted in a study by To and Trinh (2021) on Vietnam's mobile wallet services However, in China, perceived ease of use did not have a notable effect on fintech usage, indicating varying factors that affect fintech adoption across different regions Trust and perceived enjoyment also play critical roles in the acceptance of mobile wallet services in the Vietnamese market.
The concept of financial literacy gained significant attention in policy discussions following the JumpStart Coalition for Personal Financial Literacy's 1997 study, which defined it as "the ability to use knowledge and skills to manage one's financial resources effectively for lifetime financial security." This definition encompasses a range of interpretations in academic literature, including knowledge of financial products such as stocks and bonds, understanding key financial principles like inflation and credit scores, and possessing the mathematical skills necessary for sound financial decision-making Ultimately, financial literacy reflects an individual's understanding of essential financial management concepts, focusing on the ability to comprehend compound interest, inflation, and risk diversification.
Prior research by Junger and Mietzner (2020) and Morgan and Thinh (2020) indicates a positive link between financial literacy and the adoption of fintech Additionally, Liu et al (2020) support this conclusion, highlighting that financial literacy is also associated with innovativeness.
Facilitating conditions refer to the degree to which a person believes that the existing organizational and technical infrastructure can support the use of technology (Chan el al.,
Facilitating conditions, as defined by Venkatesh et al (2003), refer to users' confidence in an organization's technical infrastructure to support effective system utilization for enhanced performance While Venkatesh noted that these conditions do not influence behavioral intention directly, they do impact user behavior Essentially, facilitating conditions encompass the availability of adequate resources and support necessary for individuals to effectively use technology.
& Shankar, 2009) Lack of assistance, lack of timely support, incomplete information, and limited resources can prevent individuals from accepting web-based technology (Kamaghe et al., 2020).
Innovation in technology plays a crucial role in empowering users to identify and address challenges that may occur during technical tasks, as noted by Hassan et al (2022) This technological advancement not only aids in problem-solving but also enhances users' experiences, fostering positivity and engagement (Odei-Appiah et al., 2022) Additionally, All et al emphasize the importance of these innovations in creating effective user interactions.
A 2018 study examined the link between fintech services and facilitating conditions, revealing a weak relationship The authors noted that fintech services are still evolving in many developing countries, posing challenges for organizations in educating users on effective utilization for timely financial transactions Conversely, numerous academic studies have highlighted the positive impact of facilitating conditions on fintech services, including mobile payments and mobile banking.
An individual's financial health is defined by their economic condition across four key dimensions: savings, spending, borrowing, and planning To gain a comprehensive understanding of financial health, one should also consider financial capability, wellness, and well-being Individuals demonstrating strong financial health typically engage in positive behaviors such as spending less than their income, paying bills on time, planning finances thoughtfully, and maintaining sufficient liquid and long-term savings Financial health is a holistic concept that encompasses not only financial metrics but also overall financial satisfaction.
This study evaluates financial health by analyzing respondents' attitudes toward financial allocation and management within the dynamic context of the VUCA era, which is characterized by volatility, uncertainty, complexity, and ambiguity (Joo, 2008).
Theoretical backgrounds
2.2.1 The Unified Theory of Acceptance and Use of Technology (UTAUT)
The Unified Theory of Acceptance and Use of Technology (UTAUT) and its extension, UTAUT2, have been extensively tested across various cultural contexts to assess the influence of cultural factors on the adoption of financial technology (FinTech) Research by Gupta et al (2008), Im et al (2011), and Venkatesh et al (2012) demonstrates that UTAUT constructs remain significant despite cultural differences A comparative analysis between the USA and China highlights the model's strong explanatory power across both regions, reinforcing its cross-cultural relevance However, the model's explanatory strength tends to increase with fewer moderators, underscoring the need to concentrate on essential variables Studies examining UTAUT in cultures like Korea and the USA indicate minor variations in the strength of its constructs.
14 relationships while maintaining invariant significance across samples (Im, Hong & Kang,
Cross-cultural assessments have demonstrated the robustness of the model in both individualistic and collectivistic nations, highlighting the significant moderating influence of culture on its pathways (Udo, Bagchi & Maity, 2016) The UTAUT2 model, an extension of the original theory, has been validated across various countries with differing cultural, economic, and technological contexts Interestingly, a study in Jordan revealed that social influence did not significantly impact the adoption of mobile banking (Alalwan, Dwivedi & Rana, 2017).
Comparative studies on education technology adoption in Korea, Japan, and the US reveal distinct relationships influenced by cultural contexts, indicating varied user preferences Notably, effort expectancy was not a significant factor in any of the countries, suggesting that the technologies tested were easy to use (Jung & Lee, 2020) The application of UTAUT2 highlights the necessity of factoring in cultural elements, such as socio-economic status and social norms, to fully grasp technology adoption dynamics In the context of mobile app adoption, key determinants include performance expectancy, social influence, hedonic motivation, and habit However, in mobile banking adoption studies, the impact of social influence was inconsistent, with performance expectancy, hedonic motivation, and habit showing stronger effects (Baptista & Oliveira, 2015).
In summary, UTAUT and UTAUT2 offer a comprehensive framework for analyzing FinTech adoption, highlighting the universal applicability of their constructs while recognizing the cultural factors that influence adoption behaviors These theories play a crucial role in clarifying the complexities associated with technology adoption in the rapidly changing field of financial technology.
2.2.2 The Diffusion of Innovation (DOI)
Rogers (2003) identified key elements in early diffusion research across multiple disciplines, integrating communication theory with rational theories from economics and sociology in his influential work "Diffusion of Innovations" (Ardis & Marcolin, 2017) This theory, while grounded in communication, incorporates various organizational life theories and outlines significant factors that explain social change over time In the context of Fintech adoption, the Diffusion of Innovations theory provides valuable insights into how new financial technologies are embraced An innovation, defined as a new idea, practice, or object, is perceived differently by individuals and entities within the adoption system, which may include individuals, firms, clusters, social networks, and countries (Meyer, 2004; Rogers, 2003) Rogers identified five key attributes of innovation, with individuals' perceptions of these attributes influencing the adoption rate within a social system.
The innovation-decision process, which includes optional, collective, authority, and contingent decisions, significantly affects the speed of adoption (Rogers, 2003) Communication channels are crucial as they facilitate the transmission of information about innovations (Chakrabarti, Feineman & Fuentevilla, 1983) Individuals often base their evaluations of innovations on the experiences of peers who have already adopted them, serving as role models The concept of heterophily, which highlights differences in beliefs, education, and social status, plays a key role in diffusion, while the level of homophily within a group can either facilitate or hinder this process In the context of Fintech adoption, understanding communication dynamics, peer influence, and the characteristics of the target population is essential for developing effective strategies (Cain, 2002) The Diffusion of Innovations theory, rooted in communication yet spanning various disciplines, provides a comprehensive framework for enhancing the adoption of Fintech innovations.
Prior relevant studies
(Ỉ) Embrace Fintech in ASEAN: A Perception Through Fintech Adoption Index (Alice Yong-Zheng Huong, Chin-Hong Puah á Mei-Teing Chong, 2020)
In today's fast-evolving financial technology landscape within the ASEAN region, the financial services industry is experiencing significant changes However, there remains some uncertainty surrounding the implications of these transformations.
This research investigates consumer adoption of financial technology (Fintech) across ASEAN countries by establishing a comprehensive Fintech Adoption Index The findings reveal that Singapore leads in Fintech development with a high adoption rate, while countries like Brunei Darussalam, Cambodia, Myanmar, and Laos show lower rates due to their early-stage development In contrast, nations such as Indonesia, Malaysia, the Philippines, Thailand, and Vietnam are experiencing emerging Fintech growth Notably, all ASEAN countries have demonstrated an upward trend in Fintech adoption from 2017 to 2019 The study employs a sophisticated yet comprehensible methodology to produce dimensional and final index scores, effectively clarifying the complexities of Fintech adoption levels across various sub-sectors in all ten ASEAN nations.
The newly developed Fintech adoption index for ASEAN countries is a crucial resource for understanding consumer preferences in Fintech adoption The insights derived from this index can be effectively utilized to guide and enhance financial policies, ensuring that financial development aligns with the needs and preferences of consumers.
Figure 2.1 Research model of Alice Yong-Zheng Huong, Chin-Hong Puah & Mei-
(2) User Innovativeness and Fintech Adoption in Indonesia (Budi Setiawan, Deni Pandit Nugraha, Atika Irawan, Robert Jeyakn/nar Nathan and Zeman Zoltan, 2021)
The integration of the financial industry with financial technology (Fintech) is vital for improving access to financial services for Indonesia's large unbanked population By optimizing Fintech adoption, financial access can be extended to marginalized groups, especially those living in remote rural areas far from traditional financial institutions Fintech is viewed as a transformative force that can significantly enhance financial outreach to underserved communities by leveraging information technology and creating a digital financial landscape.
This causal research involved collecting data through online questionnaires from 485 Fintech users between December 2020 and April 2021 Data analysis and path modeling were conducted using smartPLS 3.0 software, revealing user innovativeness as a significant predictor of Fintech adoption in Indonesia, with both direct and indirect effects Importantly, user attitude is identified as the most critical factor influencing Fintech adoption, while financial literacy is found to be the least significant variable This suggests that Fintech usage requires minimal financial literacy, highlighting its potential to reach unbanked populations and individuals with limited financial knowledge.
To enhance inclusivity in Fintech adoption, the government must prioritize the rapid development of Information and Communications Technology (ICT) infrastructure Key initiatives include expanding mobile broadband access, supporting Fintech startups, creating regulatory sandboxes for innovation, and incentivizing financial institutions to adopt Fintech solutions, ultimately enabling financial services for the unbanked population.
Figure 2.2 Research model of Budi Setiawan, Deni Pandu Nugraha, Atika Irawan,
Robert Jeyakumar Nathan and Zeman Zoltan (2021)
(3) Factors Affecting Fintech Adoption: A Systematic Literature Review (Firmansyah, E.A.; Masri, M.; Anshari, M.; Besar, M.H.A, 2023)
The rise of financial technology (fintech) marks a pivotal change in the financial sector, driven by technological innovations and the aftermath of the global financial crisis This study utilizes a systematic literature review (SLR) method to analyze recent research on fintech adoption from the Scopus database, focusing on publications from 2019 to 2022 The review encompasses sixteen journal articles from various journals, reflecting different country contexts and theoretical frameworks A key aspect of the selection process was the application of strict inclusion criteria, particularly the consistent indexing of journals in Scopus, which ensures the quality of the included scholarly works.
The study highlights various factors identified by fintech researchers, with the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT) being the most commonly referenced frameworks.
Theoretical foundations highlight trust, financial literacy, and safety as key factors influencing fintech adoption Prior research indicates these elements are critical determinants, underscoring the necessity for future studies to explore genuine constructs in fintech As the fintech landscape evolves and customer behaviors shift, understanding these dynamics becomes increasingly important.
VTAUT Performance expectancy Effort expectancy Behavioral intention
Financial literacy • lei- Resource-based view sure Individual Innovative-
High values of innova knowledge
Figure 2.3 Research model of Firmansyah, E.A.; Masri, M.; Anshari, M.; Besar,
Technology Entrvprvneurxhtp Iconomic development lion
The study explores the factors influencing the intention to use fintech payment services among Vietnam's Generation Z It identifies key determinants such as perceived ease of use, perceived usefulness, and social influence The research highlights the importance of trust and security in shaping user attitudes towards fintech solutions Additionally, it emphasizes the role of technological acceptance in driving adoption among young consumers Findings suggest that understanding these factors can enhance the development of fintech services tailored to the preferences of Generation Z in Vietnam.
As FinTech evolves, research in this area is diversifying and becoming more complex Although few scholars have investigated the social factors affecting the intention to use FinTech services, this paper aims to enhance the Unified Theory of Acceptance and Use of Technology (UTAUT) The improved model emphasizes trust, security, and the perceived risk associated with COVID-19 as crucial factors shaping Generation Z's willingness to adopt FinTech solutions.
20 payment services, and examines their interaction with socio-demographic variables such as gender, education level, and income.
A study of 568 Generation Z individuals identified seven key factors influencing the intention to use FinTech payment services: performance expectancy, perceived COVID-19 risk, security, social influence, effort expectancy, trust, and facilitating conditions, ranked by their impact Furthermore, the research highlighted the significant moderating role of demographics, providing insights into how demographic differences affect the adoption of FinTech payment solutions.
This study lays a crucial foundation that enriches current knowledge and enables researchers to create more robust frameworks Additionally, the findings offer valuable recommendations for government authorities and FinTech companies, assisting them in designing payment applications that cater to the preferences and needs of Generation Z, ultimately improving business efficiency.
Figure 2.4 Research model of Nguyen Thi Hoai Phuong, Nguyen Dieu Thuy, Tran Linh Giang, Bui Thi Ngoc Han, Tieu Hoang Hieu, Nguyen Tan Long (2022)
(5) Exploring Risk and Benefit Factors Affecting User Adoption Intention of Fintech in Indonesia (Fannisa Rahma Haqqi, Amalia Suzianti, 2020)
Figure 2.5 Research model of Fannisa Rahma Haqqi, Amalia Suzianti (2020)
{6) The Effects of Perceived Ease of Use, Security, and Promotion on Trust and Its Implications on Fintech Adoption (Meryl Astin Nankin, Irma Rasita Gloria Barus, Soegeng Wahyoedi, 2020)
The rise of mobile device usage has accelerated the adoption of fintech innovations, providing customers with user-friendly experiences and benefits However, the increase in mobile application security threats presents significant challenges for both users and fintech developers To establish a strong fintech brand, effective promotion of services to customers is essential This study investigated the factors influencing user expectations for fintech adoption by surveying 100 individuals who have used various fintech brands, including Sakuku for payments The analysis, conducted using Structural Equation Modeling-Partial Least Square (SEM-PLS), confirmed that perceived ease of use (PEOU) and promotional efforts significantly impact user expectations.
Building customer trust is crucial for enhancing fintech adoption rates, as evidenced by the significant positive impact on trust In contrast, security factors did not demonstrate a meaningful influence on customer trust.
Figure 2.6 Research model of Meryl Astin Nangin, Irma Rasita Gloria Barus,
(7) Understanding FinTech Platform Adoption: Impacts of Perceived Value and Perceived Risk (Jianli Xie, Liying Ye, Wei Huang, and Min Ye, 2021)
Research framework and hypothesis development
Based on prior research models, the authors developed a new framework to investigate how perception and capability factors influence customers' decisions to adopt fintech, particularly in the context of the VUCA era.
Figure 2.10 Research Framework (by authors)
2.4.2 The relationship between Perceived Usefulness and Attitude
Research consistently shows that Perceived Usefulness significantly impacts how individuals evaluate emerging technologies, particularly in the context of blockchain This critical factor shapes perceptions and attitudes towards technological advancements, as highlighted in studies by Albayati et al (2020), Sheel and Nath (2020), and Palos-Sanchez et al (2021).
The concept of Perceived Usefulness significantly influences attitudes towards various technological integrations, particularly in digital channels like mobile banking and digital services Research by scholars including Bashir and Madhavaiah (2015), Verissimo (2016), Khan et al (2017), Farah et al (2018), Sanchez-Torres et al (2018), Warsame and Ireri (2018), and Hussain et al (2019) consistently demonstrates a positive correlation between Perceived Usefulness and the overall evaluation of these digital platforms.
The collective findings from these studies emphasize the significant influence of Perceived Usefulness as a key factor in shaping perceptions and attitudes towards emerging technologies This underscores the necessity for deeper exploration into the complex relationship between Perceived Usefulness and the evaluation of different technological areas.
HI: Perceived usefulness has a positive impact (+) on Attitude.
2.4.3 The relationship between Perceived Ease of Use and Attitude
Numerous studies demonstrate a positive correlation between perceived ease of use and users' attitudes towards Fintech adoption Research by Meyliana et al (2019), Hu et al (2019), and Christina et al (2019) highlights that consumer trust in Fintech is largely influenced by both perceived ease of use and perceived usefulness Therefore, when users perceive Fintech services as simple and advantageous, it fosters a favorable attitude towards adopting these technologies.
Research indicates that user confidence in Fintech is closely tied to its image, government support, and consumer innovation (Hu et al., 2019) The positive relationship between perceived ease of use and user attitudes is highlighted by the role of government and vendor support in promoting Fintech adoption Initiatives like e-wallet services and merchant training enhance perceived ease of use and usefulness, strengthening this connection Additionally, studies show that consumers with advanced digital skills and financial literacy view Fintech services as user-friendly, further reinforcing the link between perceived ease of use and positive user attitudes (Morgan and Trinh, 2020; Chong et al., 2019).
The findings highlight that perceived ease of use significantly influences users' attitudes towards Fintech adoption When Fintech services are viewed as intuitive and valuable, users tend to trust the technology and show a positive inclination towards its adoption This relationship underscores the importance of perceived ease of use in promoting favorable attitudes and encouraging the acceptance of Fintech solutions.
H2: Perceived ease of use has a positive impact (+) on Attitude.
2.4.4 The relationship between Perceived Risk and Attitude
Perceived risk is the anxiety consumers experience about potential negative consequences from online transactions Scholars define this concept in various ways; for instance, Peter and Ryan (1976) describe perceived risk as the awareness of possible loss associated with purchasing, which can inhibit buying behavior Similarly, Featherman and Pavlou (2003) emphasize that perceived risk encompasses the chance of loss when using e-services to achieve desired results This study defines perceived risk as the perceived likelihood of uncertain negative outcomes when individuals engage with an internet wealth management platform.
Online financial transactions often raise user concerns about the security of their financial information, as technical glitches can lead to data breaches by malicious actors This perceived risk significantly hinders the adoption of new technologies, especially in e-commerce, where individuals may hesitate during the online purchasing process Research by Kim, Ferrin, and Rao (2008) highlights that consumers' perceived risks negatively affect their attitudes towards internet transactions Additionally, Chong (2013) noted that the risks associated with security and privacy are heightened in mobile currency transactions due to the continuous storage of personal information on users' devices.
Perceived risk plays a crucial role in influencing the adoption of FinTech products, particularly mobile payments Research by Thakur and Srivastava (2014) indicates that individuals' perceived risk negatively impacts their acceptance of mobile payment systems Additionally, De Luna et al (2019) emphasize that perceived security significantly affects consumers' intentions to use various mobile payment platforms The uncertainty surrounding e-commerce and financial risks is identified as a major barrier to adopting FinTech solutions, suggesting that perceived risk serves as a precursor variable that adversely influences individuals' intentions to engage with internet wealth management platforms.
H3: Perceived risk has a negative impact (-) on Attitude.
2.4.5 The relationship between Financial Literacy and Trust
Financial literacy is the ability to understand and apply essential financial management principles According to the Presidents Advisory Council on Financial Literacy (PACFL, 2008), it is the practical skill of using financial knowledge for effective and lifelong money management In contrast, Kersting defines financial literacy as an individual's awareness, knowledge, and expertise in understanding the financial market and investment concepts.
2015) To give a clear example, Van Rooij’s study show that financially literate people are more likely to participate in the stock market and invest larger portions (Van Rooji et al.,
2011) In the context of this study, financial literacy specifically denotes the capability to understand concepts such as compound interest, inflation, and risk diversification (Lusardi, 2019).
Financial literacy significantly influences the adoption of fintech, as supported by studies from Junger and Mietzner, and Morgan and Trinh, which highlight a positive correlation between the two (2020) Liu et al further emphasize that financial literacy fosters innovativeness, leading to the utilization of advanced and efficient fintech services Based on this literature, we propose a hypothesis to investigate the impact of financial literacy on fintech adoption.
H4: Financial literacy has a positive (+) impact on Trust.
2.4.6 The relationship between Facilitating Conditions and Trust
"Facilitating conditions" are the circumstances that enable individuals to perceive a supportive technological infrastructure for system usage and the adoption of new technologies (Venkatesh et al., 2012) Research shows a positive link between facilitating conditions and trust in electronic payment services (Chawla and Joshi, 2019; Gupta and Arora, 2019; Moorthy et al., 2020; Khatun and Tamanna, 2020) In this study, facilitating conditions refer to individuals' perceptions of available resources, such as smartphones and FinTech applications, as well as support from application providers and technological advancements in internet wealth management platforms Engaging with these platforms requires essential resources and financial literacy, as facilitating conditions significantly influence platform adoption and exhibit a strong positive correlation with trust Venkatesh, Thong, and Xu (2020) reaffirmed that facilitating conditions affect individuals' adoption intentions, with subsequent research confirming the causal relationship between adoption behavior and facilitating conditions Studies indicate a positive correlation between facilitating conditions and trust (Ayub et al., 2018), while Oliveira et al demonstrated that trust affects consumer adoption in mobile banking Rana et al (2016) found that facilitating conditions positively impact trust in online public grievance redressal systems, and Chawla and Joshi (2019) suggested that these conditions significantly enhance consumers' trust in e-wallet services Thus, the following hypothesis is proposed:
H5: Facilitating conditions has a positive (+) impact on Trust.
2.4.7 The relationship between Financial Health and Trust
Joo (2008) defines financial health as a complex concept that includes financial satisfaction, overall financial situation, trust, and behaviors, highlighting the inadequacy of a single metric to represent it This study focuses on evaluating financial health by examining respondents' trust in their financial allocation and management during the COVID-19 pandemic.
The COVID-19 pandemic has highlighted the critical role of customer trust in the adoption of FinTech payment services, especially concerning financial transactions Previous research emphasizes that trust is essential for users to embrace new technologies in this sector (Kim et al., 2009; Shao et al., 2018).
RESEARCH METHOD
Research process
This study utilized a mixed methodology, combining quantitative and qualitative approaches to enhance the validity and coherence of the questionnaire Qualitative methods were applied to ensure the reliability of the instrument A comprehensive literature review was conducted to standardize the measurement scale for constructs such as perceived usefulness, ease of use, risk, trust, attitude, financial literacy, facilitating conditions, financial health, fintech adoption, age, gender, education, and income Adjustments were made to align the measurement scale with the research context, followed by the translation of items into Vietnamese A questionnaire was then developed based on the modified scale, and thorough revisions were performed to ensure clarity and precision before distribution.
During the subsequent stage of the study, interviews were conducted with users in
Ho Chi Minh City utilizing paper-based techniques Subsequently, SPSS was employed to analyze the gathered dataset The research process is illustrated in Figure 3.1.
Measurement scale
The study's constructs are based on existing research, with modifications to suit the current context, as detailed in Table 3.1 Perceived usefulness is measured using a four-item scale adapted from Davis (1989), while perceived ease of use is assessed through a three-item scale from Hu et al (2019), Kanchanatanee et al (2014), and Niu et al (2021) Perceived risk is evaluated using a four-item measure from Kim, Ferrin, and Rao (2009) Financial literacy is assessed with a three-item scale adapted from Lusardi (2019) and Junger et al (2020) Lastly, the four-item measure for facilitating conditions is based on the work of Venkatesh et al.
The study utilizes scales for financial health and user attitudes adapted from Budi Setiawan et al (2021), with each construct measured by four items Trust in users was assessed using four items from Sabine Gebert-Persson et al (2019), while fintech adoption was evaluated through four items derived from Jianli Xie et al (2021) and Venkatesh et al (2012) All items were rated on a five-point Likert scale, ranging from 1 (strongly disagree) to 5 (strongly agree) The questionnaire was initially written in English and subsequently translated into Vietnamese, aligning with the research context.
PU1 Fintech services help me make transactions in my business faster
Davis (1989) PU2 Fintech services add to the effectiveness of my business
Fintech services help make it easier for me to run a business
I think fintech services provide positive benefits for my business because of their various reliability
2 Perceived ease of use (PEU)
PEUl It is easy to use fintech services
PEU2 I think the operation interface of fintech is friendly and understandable
PEU3 It is easy to have device to use fintech services
(cellphone, APP, WIFI, et al.)
PEU4 I can interact with the fintech services system everywhere
PRl Using Fintech services is associated with a high level of risk
PR2 There is a high potential for loss in using fintech services
PR3 There is considerable risk involved in using fintech services PR4 A decision to use fintech services are risky
FLl I have knowledge of compounding interest Lusardi, A (2019);
FL2 1 have knowledge of inflation
Junger, M et al (2020); Hackethal et al (2010) FL3 I have knowledge of risk diversification
I am very interested in financial matters and keep myself informed about potential investment opportunities.
I have the resources necessary to use the FinTech wealth management platform, such as smartphones, relative applications, and so on Venkatesh, V et al.
FC2 I know (financial, internet usage) necessary to use the FinTech wealth management platform.
FC3 I can get help from others when I have difficulties using the FinTech wealth management platform.
FC4 I can get to know Fintech features easily
FHl My earnings are abundant
(2021) FH2 I use my credit card appropriately
FH4 I tend to deposit more into banks
ATTl I believe using Fintech services is a good idea
ATT2 Using Fintech services gives me pleasant experience
ATT3 I am interested in Fintech services
ATT4 It feels reliable to use Fintech service
Sabine Gebert-Persson et al (2019)
TRU2 I feel secure when using Fintech services
TRU3 Fintech services meet my expectations.
TRU4 In general, I can trust Fintech services
FAI I will continue using Fintech services
JianliXieet al (2021); Venkatesh, V et al (2012)
I plan to continue to use the Fintech wealth management platform frequently.
FA3 I will always try to use the FinTech wealth management platform in my daily life.
FA4 I will recommend Fintech services to my friends
Questionnaire design
The questionnaire, designed to explore the digital transformation of insurance, was divided into three sections: the first focused on enhancing customer adoption of insurtech through improved perceptions and attitudes, along with screening questions for participant selection; the second assessed various research aspects; and the third gathered demographic data from respondents Before distribution, a trial run was conducted in Ho Chi Minh City with participants from diverse age groups, leading to revisions based on feedback to ensure clarity and effectiveness of the questionnaire.
Qualitative Research Methods
The research has established a preliminary model and theoretical framework, as outlined in Appendix 01, which includes questions designed to gather participant feedback on content, timing, and location for discussions The interview process consists of two key sections: first, assessing general awareness of fintech and evaluating fintech itself; second, refining the statements in the research model scale.
In-depth interviews revealed a widespread recognition of the appeal and advantages of fintech services among individuals Participants acknowledged that fintech offers significant benefits, such as time and cost savings, along with enhanced convenience The overall sentiment indicated a strong willingness to adopt fintech solutions, with many believing that this transition would lead to improved service delivery.
Most participants support the measurement scale for the proposed variables, but some suggest refining the questionnaire for better specificity and clarity, especially concerning scientific terminology, to improve response accuracy As a result, modifications have been implemented to enhance the questionnaire's specificity, simplicity, and clarity prior to its distribution to survey respondents.
Quantitative Research Method
The study utilized a quantitative research approach through a survey questionnaire, which was developed based on refined qualitative research outcomes This methodology plays a vital role in enhancing the study's quality and reliability by converting collected data into numerical values Key steps in the quantitative research process include sample design, conducting the survey for data collection, analyzing descriptive data, and performing regression analysis.
The convenience sampling method allows researchers to select easily accessible survey participants, optimizing time and budget; however, it poses challenges in determining sampling error and appropriate sample size Hair et al (2006) recommend a minimum sample size of 5 times the number of observed variables for Exploratory Factor Analysis (EFA), which in this study, with 36 observed variables, equates to at least 180 participants Additionally, Nguyen Dinh Tho (2011) advocates for a minimum of 5 to 10 observations per measurement variable, suggesting a range of 180 to 360 observations To address potential issues such as incomplete responses and to ensure diverse representation, this study ultimately gathered around 400 survey responses.
Data synthesis and processing, along with analysis using Excel 2010 and SPSS 20.0, is crucial for ensuring the integrity of data analysis The collected data from response forms is meticulously reviewed to correct any encoding errors before being consolidated for analysis This process includes initial statistical analysis, screening of questionnaires based on specific criteria, and assessing the reliability of the scale through Cronbach’s Alpha coefficient, where a higher value indicates greater reliability Exploratory factor analysis (EFA) is performed to eliminate unsuitable variables and avoid spurious factors While Cronbach's Alpha measures the correlation between variables, it does not determine which variables should be retained; thus, correlation coefficients are used to remove those that minimally contribute to the measured concept, following the methodology outlined by Hoang Trong and Chu Nguyen Mong Ngoc (2008).
CHAPTER 3 - SUMMARY: In Chapter 3, the authors detail the research methodology employed The study was conducted utilizing two primary methods: qualitative research and quantitative research Qualitative research involved in-depth interviews with customers possessing varied levels of technological knowledge From the insights gleaned through qualitative research, the authors identified Fintech adoption as the independent variable, alongside two mediators and six independent variables influencing it Subsequently, the formal research phase was executed through quantitative research, employing individual interviews with multiple-choice questionnaires Chapter 3 also encompasses discussions on various aspects of the quantitative research process, including sampling design, data collection, data analysis, regression analysis, as well as deliberations on pertinent concepts and standards within the realm of data analysis.