Drivers of Intention to Adopt Fintech: A Study in the Urban Sector

Global Financial Technology adoption grew from 33% in 2017 to 64% in 2019, and in Nepal, Fintech users surged by 207.41% from 6.48 million in 2020 to 19.92 million in 2023, significantly influenced by the COVID-19 epidemic. Despite numerous studies on Financial Technology adoption globally, research on drivers of adoption intention, particularly incorporating mediation and moderation effects across various sectors of urban areas of Nepal, remains limited. Thus, this study examines the drivers of intention to adopt Financial Technology among urban Nepalese in Kathmandu Valley using the Technology Acceptance Model and the Unified Theory of Acceptance and Use of Technology. The study employs a descriptive and explanatory research design to thoroughly examine the factors influencing the intention to adopt Financial Technology services. A non-probability sampling technique, specifically convenient sampling, was used to gather data from 360 users of Fintech services through a structured questionnaire administered via the Kobo Toolbox. Data analysis was conducted using Structural Equation Modeling with Partial Least Squares version 4.1.0.1. The findings indicate that effort expectancy, trust, and perceived usefulness directly influence the intention to adopt Fintech services. In contrast, security and privacy, and social influence affect adoption indirectly through perceived usefulness. Furthermore, effort expectancy partially impacts adoption through perceived usefulness, but perceived trust only directly affects adoption. Moreover, the education level moderates the impact of trust and social influence on adoption. In contrast, the effects of security and privacy, and effort expectancy are not influenced by education. The study offers vital insights to regulators, policymakers, providers of Financial Technology services, and BFIs as they should prioritize initiatives that enhance trust, effort expectancy, and perceived usefulness of Fintech services.