Fintech Adoption in Banking Sector: Mediating Effect of User Innovativeness

Abstract

Financial technology (FinTech) has revolutionized the banking sector, transforming traditional financial transactions through digital platforms. This study investigates the key factors influencing FinTech adoption among banking customers in Nepal, focusing on financial literacy, government support, perceived ease of use, perceived usefulness, and user innovativeness. Additionally, the study examines the mediating role of user innovativeness in the relationship between financial literacy, government support, and FinTech adoption. Employing a quantitative approach, data were collected from 208 banking customers using a structured questionnaire. PLS-SEM was utilized for analysis. The findings reveal that financial literacy and government support do not have a direct influence on FinTech adoption. However, when mediated by user innovativeness, their indirect effect becomes significant. Perceived ease of use and perceived usefulness exhibit a strong positive relationship with FinTech adoption, highlighting the importance of user-friendly platforms and clear functional benefits. The study’s findings have significant implications for financial institutions, policymakers, and technology developers. While financial literacy and government support alone may not drive adoption, they contribute indirectly by fostering user innovativeness. This underscores the need for strategies that encourage digital adaptability and openness to technology. Future research should explore FinTech adoption across various industries, assess long-term behavioral changes, and examine regional differences in adoption patterns. By understanding these determinants, stakeholders can develop targeted strategies to enhance digital financial inclusion and promote sustainable FinTech growth.