FinTech Services and Network Economics: Mediating Effect of FinTech Adoption

Technology Innovation

The rising adoption of financial technology is a vital catalyst for financial industries which are compound of systematic network economics. The precipitate growth of technology being employed in the financial industry is helping organisations in achieving a community of similar customers expanding their reach without any additional cost being incurred while the organisation is becoming gaining more influence on the economy. Fintech is disrupting financial industries with technology and innovation which is on the other hand catering materials for the organisations to capitalize on network economics. Financial institutions bank on financial technology to develop their services with respect to information technology which is the essential part of strengthening that network economy. Improved financial service sustaining data security convenience of use and promotion has greater potential to nudge customers' intention to fintech adoption. In addition, with customers being lean on fintech adoption financial institutions can experience a positive response in their network economics. Nevertheless, with fintech and its impact on network economics being a significant construct in the industry few studies have been undertaken to cover this subject. This paper has examined the impact of information security (IS), the convenience of use (CU) and FinTech promotion (FP) on network economics (NE) and explained the mediating effect of fintech adoption on the considered variables. The paper obtained data from 157 customers and analyzed those using the Partial Least Square method. The findings of the paper prove a significant positive impact of IS and FP on network economics. Additionally, the impact of IS and FP on NE is mediated with the presence of FinTech Adoption (FA) by the organizations.

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