Comparative analysis of FinTech adoption among Islamic and conventional banking users with moderating effect of education level: A UTAUT2 perspective

This study aims to examine the consumer behavior with regards to the FinTech services in the context of Pakistan and identify the consumers’ driver and detractors to adopt FinTech firm. Tapping into an area yet un-explored, it seeks to propose a conceptual framework based on the UTAUT2 model and extend the FinTech adoption model by determining the effect of performance expectancy and effort expectancy based on educational segmentation. In a similar vein, it aims at examining the gaps in the adoption of FinTech services in both Islamic banking as well as the conventional competing banks of Pakistan. This paper employed a quantitative research design; data were collected from 382 subjects in Karachi, Pakistan Convenience sampling and random number generation were employed to minimize biased. This study sought participants’ responses to the survey questionnaire of 22 items, distinguishing the seven constructs of the UTAUT2 and a new one, education level, on a five-point Likert scale. Concerning the sample size and the research methods that were used, the rationale was given in line with the available guidelines and the results of empirical research in the field of behavioral sciences. As the research hypothesis postulated, the study revealed performance expectancy, effort expectancy, social influence, and facilitating conditions as independent factors influencing behavioral intention to use FinTech, although the moderating effect of education level only affected the relationship between the performance expectancy and behavioral intention to use FinTech influenced by it. They also found differences between Islamic and conventional banking users, and the enhancing/attenuating impacts of the constructs on the behavioral intention alertly. This research underscores the essential factors that influence the behavioral intention of the users towards FinTech services – performance expectancy, effort expectancy, social influence, and facilitating conditions – with implications for promoting positive service experiences. Financial technology firms must heed these insights to create simple and secure applications to increase the adoption of FinTech innovations that are sensitive to the anglophone African cultures. Besides, the focus on deploying rather diverse local initiatives for comprehending and constantly improving the FinTech services based on people’s feedback can increase consumers’ trust and expectations.