Factors Influencing The Intention To Adopt Fintech By Pakistani Microfinance Banks

Abstract

This study looks at the main variables affecting Pakistani microfinance bank’s adoption of FinTech, with an emphasis on the importance of technological proficiency. The study examines the relationships between perceived ease of use, perceived usefulness, service quality, trust, costs, and FinTech adoption, both directly and through the mediating role of technological competency, using quantitative research methods to analyze data gathered from various microfinance institutions.The results show that perceived trust, perceived utility, and simplicity of use all have a large and favorable impact on the adoption of FinTech, making [1]them the main motivators. Adoption is favorably impacted by service quality as well, but less so. On the other hand, expenses are found to have a considerable negative impact, suggesting that FinTech adoption is discouraged by greater prices. The study also finds that, although it does not substantially mediate the association between costs and adoption, technological skill is a crucial mediator in the correlations between perceived utility, perceived ease of use, service quality, trust, and FinTech adoption.Among the helpful recommendations include improving the FinTech solutions' perceived value and usefulness, improving the quality of services, building and maintaining trust, efficiently managing costs, and providing funding for user training to enhance technical expertise. The report also offers recommendations for future research, including the examination of novel elements, the conduct of longitudinal studies, and the execution of cross-regional comparisons, in order to understand the dynamics of FinTech adoption.This research adds significant knowledge to the field of financial technology by giving financial institutions that want to implement FinTech solutions helpful advice and laying the groundwork for future scholarly investigations into the variables influencing FinTech adoption in emerging nations.