Perceived Risk Factors Affect Intention To Use FinTech

Abstract

Objective: Studies show there is a high acceptance of FinTech development in Malaysia. However, the perceived risk factors that hinder a user's intention to use FinTech remains vague. Research on perceived risk is limited, especially the use of FinTech in the context of Malaysia. Therefore, this study aims to narrow the gap in perceived risk factors of FinTech. Methodology: A total of 302 participants participated in the study. Collected data and hypotheses were tested using the method of structural equation modelling. Results: It is found that three of the four dimensions of financial risk, legal risk and operational risk have a significant negative impact on the intention to use FinTech. The findings found that security risks do not have a significant negative effect on the intention to use FinTech. This result is consistent with the finding that Malaysian consumers' perception of e-payment is not significantly related to perceived security. Implication: The results help practitioners better conceptualise and reduce risk barriers in preparing for the disruption of FinTech. Practitioners are also advised to pay attention to FinTech's operational skills and system functional performance in FinTech services.