Determinants of User-Level Fintech Services Adoption: A Case of Customers of Supermarkets In Addis Ababa
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Date
2024-01-15
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AAU
Abstract
FinTech (a portmanteau of the words “financial” and “technology”) is nowadays everywhere and has become an integral part of our daily lives. In other words, instead of being an exception and a luxury it has become an essential tool for our lives be it at individual level or organizational level. Though by understanding that fact both private companies (such as banks, telecom companies, and FinTech companies) and government have invested hugely in FinTech infrastructures, we witness a very low adoption of the use of the technology in our country even by Sub-Saharan countries standards. Therefore, this study tries to identify the parameters that affect FinTech adoption by using the customers of Shoa Supermarkets and Hypermarket located in different parts of Addis Ababa and suggests what should be done by each of the stakeholders of the FinTech eco-system to improve the existing low adoption rate. The study applied behavior-related theories such as Theory of Reasoned Action (TRA) and Theory of Planned Behavior (TPB) and technology-related theories such as the Technology Adoption Model (TAM) and Unified Technology Adoption and Use II (UTAUT2) to identify those determining factors. After an extensive literature reviews the most relevant and major independent variables i.e., performance expectancy, effort expectancy, social influence, facilitating conditions, perceived risks have been identified based on the UTAUT2 model along with their indicators and questions. As far as the modeling of variables is concerned, the Structural Equation Modeling (SEM) software SPSS AMOS 23 has been utilized to model the latent variables and carry out the analysis. The research findings indicated that while performance expectancy, effort expectancy, facilitating conditions, have a significant and positive effect on FinTech services and products adoption, perceived risk associated with the use of the technology has significant, but negative effect on its adoption. The research also revealed that the social influence has an insignificant, but positive effect on the adoption of FinTech services and products. Accordingly, the researcher recommends each stakeholder of the FinTech eco-system, be it private or governmental, should play its role in order to improve the adoption rate and hence exploit the benefits obtained from the technology and further studies be carried out in relation to the wider population and additional determinants