Benefit-risk perceptions of fintech adoption for sustainability from bank consumers' perspective: the moderating of fear of covid-19

Abstract

The efficiency-boosting potential of Industry 4.0 technologies is undeniable, and they are also a driving force for sustainability. In the domain of financial technology (FinTech), the increasingly pressing question concerns how to foster the development of “FinTech natives” from the COVID-19-pandemic-induced adoption and realize FinTech’s impact on sustainability? Accordingly, the goals of this research were as follows: (1) to examine whether perceived benefits influence FinTech services adoption; (2) to examine whether perceived risk influences FinTech services adoption; (3) to investigate whether FinTech adoption contributes to sustainability; and (4) to test the role of fear of COVID-19 as a moderator in FinTech adoption. By employing Structural Equation Modeling (SEM) in IBM SPSS 25.0 and IBM SPSS AMOS 25.0, the researcher was able to test hypotheses derived from the Net Valence Framework, the Sustainable Information Society theory, and the Protection Motivation theory. An online survey of bank consumers with FinTech experience in Malaysia between 4th December 2021 to 14th February 2022 yielded 1279 usable questionnaires, randomly selected to generate 400 respondents. The findings showed that: (1) the perceived benefits significantly influence FinTech adoption, whereas perceived risk does not; (2) FinTech adoption significantly affects sustainability, and 3) fear of COVID-19 moderates the perceived benefits–FinTech adoption relationship and the perceived risk–FinTech adoption relationship. These findings demonstrate that models of FinTech adoption should leverage consumer sentiment (such as fear) to optimize its benefits and risks, therefore producing FinTech natives to enhance economic, social, and environmental sustainability. Bank managers and policymakers can use the findings to improve FinTech usage and establish new fundamental design principles on how organizations in various areas can collaborate to use FinTech to address sustainability issues. Government, regulatory bodies, and other organizations related could utilize the research outcomes to design an expedited transition to cashless payment in Malaysia while reducing the risk of COVID-19 infection. The study's findings may also be utilized to educate bank consumers on FinTech’s potential to support sustainable development (sustainability).