Article-1 Banking Goes Digital: Unearthing the Adoption of Fintech by Bangladeshi Households

Abstract

The underdeveloped financial system, large unbanked population, and rising mobile penetration rate in Bangladesh have ignited the development of innovative digital finance solutions. The increasing demand for Mobile Financial Services and other digital banking services has amplified Fintech adoption in Bangladesh. Thus, this paper aimed to assess the significant determinants of Fintech adoption by Bangladeshi households using a modified UTAUT2 model. Drawing on data collected from 481 Fintech users, CFA, and CV-SEM approaches were employed to classify the significant determinants concerning Fintech adoption in Bangladesh and a Multi-group analysis was performed to explore the moderating role of categorical variables. Although our findings reported insignificance of most of the UTAUT2 model’s constructs, it revealed a significant impact of price value and moderating impact of gender, age, and
education on Fintech adoption in Bangladeshi context. The findings reported significant insights on the pertinent theory which added new knowledge to the existent Fintech adoption literature. Since this is the first research on Fintech adoption in Bangladeshi context, it would have important theoretical, managerial, and policy implications.