FINTECH ADOPTION IN CONVENTIONAL AND ISLAMIC BANKING: MEDIATING ROLE OF USER ATTITUDE AND THE MODERATING ROLE OF PERCEIVED RISK

Muhammad Aamir; Muhammad Aamir; Muhammad Umer Quddoos

Authors

Muhammad Aamir PhD Scholar, Department of Commerce, Bahauddin Zakariya University, Multan, Punjab, Pakistan.
Muhammad Aamir Professor, Department of Commerce, Bahauddin Zakariya University, Multan, Punjab, Pakistan.
Muhammad Umer Quddoos (Corresponding Author) Associate Professor, Department of Commerce, Bahauddin Zakariya University, Multan, Punjab, Pakistan.

Keywords:

FinTech Adoption, Technology Acceptance Model, Information System Success Model, User Attitude & Perceived Risk, Islamic & Conventional Banking

Abstract

The rapid growth of financial technology (FinTech) is transforming the delivery and consumption of banking services, making FinTech adoption increasingly important for both conventional and Islamic banks. However, technological availability alone does not guarantee adoption, as users’ capabilities, perceptions, attitudes, and risk concerns can influence their adoption decisions. This study develops an integrated framework to examine the determinants of FinTech adoption by combining Digital Financial Capability (DFC), Technology Usage (TU), the Technology Acceptance Model (TAM), and the Information System Success Model (ISSM). User Attitude (UA) is proposed as a mediating variable, while Perceived Risk (PR) is examined as a moderating variable in the relationship between User Attitude and FinTech Adoption (FA). The study adopts a quantitative, cross-sectional research design based on a positivist philosophy. Data were collected from 450 respondents, equally representing conventional and Islamic banking customers, using a structured questionnaire measured on a five-point Likert scale. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS 4. The findings indicate that Digital Financial Capability, Technology Usage, TAM, and ISSM positively influence User Attitude, while User Attitude has a significant positive effect on FinTech Adoption. User Attitude also partially mediates the relationships between all four antecedents and FinTech Adoption. Furthermore, Perceived Risk significantly and negatively moderates the relationship between User Attitude and FinTech Adoption, indicating that higher perceived risk weakens the translation of favorable attitudes into actual adoption. The study contributes to FinTech and banking literature by integrating individual capability, technology acceptance, information-system success, attitudinal, and risk perspectives within a unified framework for conventional and Islamic banking.

JEL Classification Codes: G21, O33, D12

D.O.I. https://doi.org/10.5281/zenodo.23860973

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