Understanding Benefit and Risk Framework of Fintech Adoption: Comparison of Early Adopters and Late Adopters

Abstract

Financial technology (Fintech) service has recently become the focus of considerable attention. Although many researchers and practitioners believe that Fintech can reshape the future of the financial services industry, others are skeptical about the adoption of Fintech because of the considerable risks involved. Therefore, we need to better understand why users are willing or hesitant to adopt Fintech, wherein, positive and negative factors affect their adoption decision. Based on the net valence framework theoretically embedded in theory of reasoned action, we propose a benefit-risk framework which integrates positive and negative factors associated with its adoption. Based on the empirical data collected from 244 Fintech users, this study initially investigates whether perceived benefit and risk significantly impact Fintech adoption intention. We then examine whether the effect of perceived benefit and risk on Fintech adoption intention differs depending on the user types. Results show that legal risk has the biggest negative effect, whereas convenience has the strongest positive effect on Fintech adoption intention. The differences between early adopters and late adopters are driven by different factors.