PROMOTING FINANCIAL TECHNOLOGY ADOPTION FOR SUSTAINABILITY THE ROLE OF PERCEIVED FACILITATION AND QUALITY OF INSTITUTIONS

Aslam Muqadas; Arshad Zubair

Authors

Muqadas Aslam MPhil Department of Accounting & Finance, The Superior University Lahore, Punjab, Pakistan (Corresponding Author). , Superior University
Zubair Arshad Assistant Professor, Department of Accounting & Finance, The Superior University, Lahore, Punjab, Pakistan. , Superior University

Keywords:

FinTech; Adoption; Perceived Facilitation; Institutional Quality; Sustainability

Abstract

The wider adoption of FinTech in Pakistan is impeded by the lack of digital infrastructure, internet connectivity, customer support and institutional support. This research investigates the influence of perceived facilitating conditions on FinTech adoption and probes the mediating function of FinTech adoption between facilitating conditions and sustainability. In addition, the study examines the moderating effect of institutional quality on the strength of the link between perceived facilitation and FinTech adoption. A quantitative research design was followed. The primary data were collected from the users of mobile banking and other FinTech services in Pakistan through structured questionnaire. The respondents were selected using the random sampling technique and the data collected were analysed through SPSS to analyse the proposed direct, mediation and moderation effects. The findings suggest that enabling conditions, especially technological infrastructure, availability of the internet and continued customer support, are significant in FinTech adoption. The findings also show that increasing the adoption of FinTech can lead to sustainability through providing more access to financial services, improving the efficiency of transaction, decreasing operational costs, and encouraging the environmentally responsible financial practices. Additionally, the relationship between facilitating conditions and sustainability is mediated by FinTech adoption, and institutional quality enhances the positive relationship between perceived facilitation and FinTech adoption. The study points out the need for improved digital infrastructure, institutional arrangements, customer support mechanisms and digital financial literacy in an effort to develop a more inclusive, efficient and sustainable financial ecosystem in Pakistan.

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