Adoption Potential of Fintech Services: A Study Based on Employees of the Financial Institutions in Sri Lanka

Abstract

Introduction: FinTech can be identified as software, mobile applications, or any other technologies designed to enhance and automate conventional financial services for both consumers and enterprises. Sri Lanka which can be identified as a developing country, the adoption of FinTech would be a crucial factor to improve the economy of the country. This study was conducted to address the research problem of the adoption potential of fintech services in Sri Lanka. The main objective of the study is to examine the adoption potential of fintech services by using the perceptions of the employees of financial institutions in Sri Lanka. Methodology: Performance expectancy, effort expectancy, social influence, facilitating conditions, perceived reliability, added value, self-efficacy and nervousness are the independent variables used in this study and the dependent variable is the actual use of fintech. The data sample of the study is the employees of financial institutions, and the sample size was 384 employees. Data is collected by distributing questionnaires. A regression model is developed to achieve the objective using the SPSS software and further, reliability and validity of the data is investigated using the goodness of fit tests. Findings: According to the results, performance expectancy, effort expectancy, social influence, facilitating conditions, and perceived reliability have an impact on the actual fintech usage in Sri Lanka, while added value, self-efficacy and nervousness do not have a significant impact on the actual fintech usage in Sri Lanka. Conclusion: In conclusion, the study envisions that its findings will not only benefit the financial industry in Sri Lanka but also serve as a valuable reference for other sectors. The study aims to be a milestone, providing insights into the adoption potential of fintech services in Sri Lanka that can apply to other developing countries, thereby paving the way for future research in this evolving field. Even factors deemed insignificant in the current context should be monitored, as they may become influential in the future. Collaboration between the public and private sectors is deemed essential to achieve widespread fintech adoption.