Factors Affecting Customer’s Trust in Fintech Services: Evidence from Western Province Licensed Commercial Bank’s Customers in Sri Lanka

Abstract

Introduction: The purpose of this research is to identify the factors that affect customer’s fintech services trust in Sri Lanka. Fintech services also mean a set of innovative services offered by financial institutions and supported by advances in information technology.

Methodology: The researcher chose the Western Province as the area to conduct the study. In this regard, data was collected from users of fintech services in the Western Province using a survey questionnaire. Perceived risk, perceived reputation, service quality, and perceived regulatory support were used as independent variables in this study, with customer’s trust in fintech services as the dependent variable. Data were analyzed independently using SPSS software, which included statistical tests such as multicollinearity, reliability, normality, and regression analysis. For all the variables, descriptive statistics were used to determine the mean values of respondents' perspectives.

Findings: According to the study's findings, perceived reputation and service quality independent variables had a statistically significant positive relationship with the dependent variable of customer’s trust in fintech services. Perceived risk and perceived regulatory support variables are not statistically significant. Independent variables are not correlated with each other, as per the results of the inter-correlation matrix, VIF, and tolerance values, and Cronbach alpha values demonstrate the data is more reliable. According to the regression results, perceived reputation is the most affecting factor in enhancing customer’s trust in the Western Province.

Conclusion: The final result highlights that only two variables—perceived reputation and service quality—are statistically significant in developing customer trust in fintech services in Sri Lanka. The researcher suggests regulatory authorities should work toward increasing transparency and public awareness about standards related to compliance to build perceived regulatory support.