Technological Revolution in Financial Services: An Empirical Examination of Consumers Adoption of Fintech Services Using PLS-SEM and Importance–Performance Map Analysis

Abstract

The adoption of fintech services has been a focal point of discussion among academicians, financial institutions and policymakers due to its role in augmenting financial inclusion and sustainable development. Ergo, the study aims to examine the influence of consumer digital awareness, consumer digital financial literacy and consumer digital engagement on the adoption of fintech services. Additionally, the study investigates the mediating effect of consumer empowerment between consumer digital awareness, consumer digital financial literacy, consumer digital engagement and the adoption of fintech services. The primary data are obtained from consumers in the Northern Indian region using a structured questionnaire and purposive sampling. The study utilizes partial least squares structural equation modelling (PLS-SEM) and importance–performance map analysis to achieve its objectives. The study’s results indicate that consumer digital awareness is the most significant predictor, followed by consumer empowerment, consumer digital engagement and consumer digital financial literacy. Moreover, consumer empowerment establishes complementary partial mediation between consumer digital awareness, consumer digital financial literacy, consumer digital engagement and the adoption of fintech services. The study’s findings can be utilized in framing policies to augment the adoption of fintech services, which would be helpful in deepening financial inclusion and sustainable development.