Article

Perception, Adoption, and Pattern Emerging Economy Studies

6(1) 7–22, 2020
of Usage of FinTech Services by 2020 International
Management Institute
Bank Customers: Evidences from Reprints and permissions:
in.sagepub.com/journals-permissions-india
Hojai District of Assam DOI: 10.1177/2394901520907728
journals.sagepub.com/home/emi

Ankita Das1 and Debabrata Das1

Abstract
With the advent of technology, banking and financial services have widened their scope. India achieved
FinTech adoption rate of 87 percent as against the global average of 64 percent mostly contributed by
FinTech startups aiming for providing access to financial services even in the remotest areas. Realizing
the potential of FinTech to contribute toward financial inclusion and stability, the Governments have
taken requisite steps toward digital transformation and promote FinTech ventures. In order to meet the
customers’ needs, collaborative moves with FinTech firms have been initiated by financial institutions
as well. This article aims to investigate the relationship between different demographic profiles, the
adoption of FinTech services, the perception, user pattern, and constraints faced by the bank customers
in using FinTech services. The results based on survey of 215 respondents reveal significant association
between usage of FinTech services and different demographic profiles. However, the awareness and use
of such services is found more among millennials and generation Z as compared with generation X
and baby boomers. While the FinTech companies gained the popularity in payment space, it is observed
that misconception is an important factor that hinders the growth of technology-based services among
respondents.

Keywords
Finance, adoption, perception, FinTech, financial institutions, government

Introduction and insurance. FinTech services have also foreyed

Financial technology (popularly known as FinTech)
refers to the use of technology to upgrade and
automate the design and delivery of financial
services. FinTech firms provide a variety of services
under a single umbrella such as money transfer,
financing start-ups, wealth management services,
into the banking services such as deposits, payments,
and collection. FinTech firms are increasingly made
instrumental for financial inclusion in India. The
Government of India, through the introduction of
India Stack, encouraged the growth of FinTech
ventures which create unified software platform with
the purpose of bringing India’s population into the

1
Department of Business Administration, Tezpur University, Tezpur, Assam, India.

Corresponding author:
Ankita Das, Research Scholar, Department of Business Administration, Tezpur University, Tezpur, Assam 784028, India.
E-mail: dasankita7575@gmail.com
8 Emerging Economy Studies 6(1)
digital age. With the ever-increasing population of
smartphone user (about 500 million by 2020), the
digital banking space is expected to witness
exponential growth (PwC & Startupbootcamp,
2017). The consumers’ preference toward the variety
of FinTech services and the Government’s steps to
improve the access by rolling out payment banks and
upgrade digital transformation are positive moves. In
recent years, various financial institutions have taken
a digital route and a collaborative move with the
FinTech firms to meet the customers’ needs. The
ICICI bank has 1 billion fund for FinTech partnerships
and has also developed mobile applications for
various segments of the customers, that is, iMobile (a
banking app), iPal (an artificial intelligence powered
chat box), iBiz (a mobile application for corporate
and small and medium enterprises), and Mera
iMobile (an e-wallet for the purpose of rural lending)
(Hetankar, 2018). State Bank of India (SBI) has also
developed apps to provide user-friendly services to
its customers which include YonoLite and SBI’s chat
box SIA that is designed to handle queries. Thus,
embracing of technology in banking, financial
services, and insurance sector will help in reaching
the unreached segments of the population and will
provide better and innovative experience to bank
customers and assist the banks to flourish.
The Context
The development of technology has resulted in
flexible payment channels and it provides the bank
customers with user-friendly bank services. People
use mobile wallets such as Paytm, MobiKwik,
Unified Payment Interface (UPI) to perform their
payment operations. According to EY Global
FinTech Adoption Index (2019), India and China
are way ahead with an adoption rate of 87 percent
which is higher than the global average of 64
percent. Although the adoption rate is more in
urban areas, significant steps have been taken by
the Government to augment FinTech usage in rural
areas. The customers are able to make payments,
purchase insurance, manage assets, and avail loans
with the help of financial technology. Thus, the use
of financial technology in the banking sector
revamps banking services and provides better user
experience. The North East India by nature is a
disadvantaged region in terms of physiological
and infrastructural front and financial infrastructure
in terms of number of banks, and number of
population per bank is also much lesser compared
with other regions of the country. As per Reserve
Bank of India report (2018), there are 4,612
functioning offices of commercial banks in the
northeastern region of India for the quarter ended
December 2018, whereas the functioning offices
of commercial banks in other regions of the
country are very high in number, that is, northern
region (27,306), eastern region (25,170), central
region (29,958), western region (22,699) and
southern region (41,744). It will also not be wise to
set up brick and mortar branches of the banks in
every village of North East because of high cost
and economies of adverse scale. In this case,
FinTech has an important role to play to mitigate
the gap of financial access in the region. The
current study is done in newly formed Hojai
district (till August 15, 2015, it was under Nagaon
district of Assam). It is one of the fastest growing
districts in Assam in terms of trade and small-scale
industries. It is the center of Agar (Aloes wood)
perfume industry, an important wholesale market
of rice, and known for its trade hub. As Hojai is an
important business center, it is important to study
the adoption, perception, and pattern of usage of
technology-based financial services by the people
in this district.
Objectives
1. To analyze the adoption of FinTech services
across different demographic profile.
2. To examine the perception and to analyze
the pattern of usage of FinTech services by
bank customers in the area of the study.
Das and Das 9

3. To ascertain the constraints faced by the Table 1. List of Banks Selected for the Study
customers while using various technology-
Number
based financial services.
of Bank
Total Branches
Branches Selected
Research Methodology Bank in the for the Respondents
Name District Study Interviewed
1. Type of research: The research is empirical SBI 7 4 100
in nature based on primary data.
ICICI 3 3 75
2. Area of the study: The area of the study
covers Hojai district of Assam. For the pur- AGVB 7 2 40
pose of collecting the data, the customers Total 215
of a private bank, that is, ICICI Bank, a Source: Total number of branches in the district obtained
public sector bank, that is, SBI and a from State Level Bankers’ Committee report (2019).
Regional Rural Bank, that is, Assam
Grameen Vikas Bank (AGVB) are selected. Table 2. Different Demographic Characteristics of
The list of banks that has been selected for the Respondents
the study has been given in Table 1.
3. Technique of data collection: Mainly pri- Demographic
mary sources are used for collecting data, Characteristics Percentage
and a structured interview schedule is used Gender Male 53
for collecting primary data. Supporting Female 47
secondary data are also collected from var-
ious reports and journals. Age 18–28 years 25
4. Sample size: The sample size includes 215 29–39 years 25
respondents who are the customers of SBI, 40–50 years 27
ICICI bank, and AGVB. Responses from
Above 50 years 23
25 respondents are collected from each of
the four branches of SBI and three branches Annual income Up to 29
of ICICI and responses from 20 respondents ` 250,000
are collected from each of the two branches ` 250,000–` 21
of AGVB. 500,000
5. Sampling technique: Convenience sampling. ` 500,001–` 23
6. Data analysis technique: Data is analyzed 750,000
using percentage method, chi-square test, 15
` 750,001–`
and weighted mean. 1,000,000
Above ` 12
1,000,000
Profiling of the Respondents
Occupation Businessmen 21
A total of 215 respondents have been interviewed Agriculturist 8
for the purpose of this study. A structured interview Government 13
schedule was prepared for the survey and the data service/PSUs
were collected from the customers of SBI, ICICI,
Private service 19
and AGVB.
(Table 2 Continued)
10 Emerging Economy Studies 6(1)

(Table 2 Continued) private service holders, and housewives and the

Demographic educational qualification of most of the respondents,
Characteristics Percentage that is, 27 percent is graduation.
Professionals 7
Student 11
Housewife 19
Data Analysis and Interpretation
Retired person 2
Demographic Characteristics and Adoption
Educational Below or till 21
of FinTech Services
qualification 10th standard
12th standard 24 Generally, FinTech service usage is influenced by
Graduate 27 demographic characteristics. This section aims to
trace the relationship between demographic char-
Postgraduate 23
acteristics of sample respondents and adoption of
Did not attend 5
FinTech services. In relation to objective number
school
one, the following hypotheses have been formed.
Source: The authors. HA: There is no association between gender and
adoption of FinTech services.
From Table 2, it can be observed that the While examining the association between
percentage of male and female respondents is 53 gender and the adoption of FinTech services, it is
and 47 percent which is approximately same with found that 57.6 percent of male respondents
the sex ratio of the Indian population as per Census regularly use FinTech services as compared with
2011. With regard to the annual income of the 36.3 percent of female respondents (see Table 3).
respondents, it is seen that 50 percent of the Hence, the adoption of FinTech services is found
respondents belong to the income group up to ` more among males. This is also justified by chi-
500,000, followed by almost one-fourth of the square test where p < 0.05, which shows that there
respondents with annual income ranging from ` is significant association between gender and the
500,000–` 750,000 and little above one-fourth of adoption of FinTech services; hence, the null
the respondents belong to the income category hypothesis is rejected at 0.05 level of significance.
above ` 750,000. It is also revealed from the table HB: There is no association between age and
that most of the respondents are businessmen, adoption of FinTech services.

Table 3. Gender and Adoption of FinTech Services

Adoption of FinTech Services

Never Rarely Sometimes Often Frequently Chi-Square
Gender (%) (%) (%) (%) (%) Test df P Value
Male 16.8 13.3 12.4 37.2 20.4 21.539 4 0.000
Female 43.1 14.7 5.9 27.5 8.8
Source: The authors.
Das and Das 11

Table 4. Age and Adoption of FinTech Services

Adoption of FinTech Services

Never Rarely Sometimes Often Frequently Chi-Square
Age (%) (%) (%) (%) (%) Test df P Value
18–28 16.7 14.8 1.9 48.1 18.5 31.853 12 0.001
29–39 20.8 7.5 9.4 45.3 17
40–50 36.2 17.2 12.1 24.1 10.3
Above 50 44 16 14 12 14.9
Source: The authors.

Table 5. Income and Adoption of FinTech Services

Adoption of FinTech Services

Never Rarely Sometimes Often Frequency Chi-Square P
Income (%) (%) (%) (%) (%) Test df Value
Up to ` 250,000 58.5 20.7 4.9 11 4.9 101.264 16 0.000
` 250,001–` 20 8.9 6.7 55.6 8.9
500,000
` 500,001–` 9.3 7.4 14.8 48 20.44
750,000
` 750,001–` 5 25 10 30 30
1,000,000
Above ` 0 0 21.4 28.6 50
1,000,000
Source: The authors.

It is also found that 66.6 and 62.3 percent of the
respondents belonging to the age group 18–28
years and 29–39 years repeatedly use FinTech
services whereas only 34.4 percent of the
respondents in the age category 40–50 years and
26.9 percent of the respondents in the age group
above 50 years are regular users of FinTech
services (see Table 4). Thus, the use of technology-
based financial services is mainly tilted toward the
younger generation. It is also observed that the p
value <0.05 which is evident that there is
association between age and the adoption of
FinTech services; therefore, the null hypothesis is
rejected at 0.05 level of significance and it can be
said that the adoption of FinTech services is
positively correlated with age.
HC: There is no association between income
and adoption of FinTech services
While examining the relationship between
income and adoption of FinTech services, a posi-
tive relation has been found, and it is observed that
the p value <0.05 (see Table 5) resulted in the
rejection of null hypothesis and shed light that
there is association between the income of the
respondents and the adoption of technology-based
financial services. Thus, the adoption of FinTech
services depends on the income of the customers.
It is also observed that 68.44 percent of the
12 Emerging Economy Studies 6(1)

respondents belonging to the income group `
500,001–` 750,000 are frequent users of FinTech
services whereas 15.9 percent of the respondents
in the income group up to ` 250,000 are regular
users of technology-based financial services which
mainly include students and customers with pri-
vate service (see Table 5).
HD: There is no association between educational
qualification and adoption of FinTech services
There is also a positive relation observed
between educational qualification and adoption
of FinTech services. It is also observed that 21.2
percent respondents with educational qualifica-
tion below or till 10th standard, 38.9 percent
respondents with qualification up to 12th stand-
ard, 60.7 percent of graduates, and 79 percent
postgraduates are regular users of FinTech
Table 6. Educational Qualification and Adoption of FinTech Services
services, and it is also found from the survey that
the respondents who do not have any formal edu-
cation have never used FinTech services (see
Table 6). While trying to test the hypothesis to
determine the association between education and
adoption of FinTech services, it is found that p
value is less than 0.05 (see Table 6) which resulted
in the rejection of null hypothesis and shows that
the use of FinTech services depends on consumer
education. Vally and Divya (2018) in their paper
stated that more educated people are expected to
have positive attitude toward adoption of innova-
tion. From the analysis, it can be seen that the
usage of FinTech services is more among gradu-
ates and postgraduates.
HE: There is no association between occupation
and adoption of FinTech services

Adoption of FinTech Services

Educational Never Rarely Sometimes Often Frequently Chi-Square P
Qualification (%) (%) (%) (%) (%) Test df Value
Below or till 46.8 23.4 8.5 19.1 2.1 71.041 16 0.000
10th standard
12th standard 35.2 13 13 27.8 11.1
Graduate 13.1 18 8.2 41 19.7
Postgraduate 9.3 2.3 9.3 48.8 30.2
Did not 100 0 0 0 0
attend school
Source: The authors.

Table 7. Occupation and Adoption of FinTech Services

Adoption of FinTech Services

Never Rarely Sometimes Often Frequently Chi-Square P
Occupation (%) (%) (%) (%) (%) Test df Value
Businessmen 2.2 6.5 15.2 52.2 23.9 135.671 28 0.000
Agriculturist 78.9 21.1 0 0 0
Government 17.9 25 10.7 32.1 14.3
service/PSUs
Private service 17.8 6.7 6.7 53.3 15.6
Professionals 0 0 20 33.3 46.7
(Table 7 Continued)
Das and Das 13

(Table 7 Continued)
Adoption of FinTech Services
Never Rarely Sometimes Often Frequently Chi-Square P
Occupation (%) (%) (%) (%) (%) Test df Value
Student 20.8 29.2 4.2 33.3 12.5
Housewife 75 15.6 9.4 0 0
Retired person 83.3 16.7 0 0 0
Source: The authors.

Figure 1. Showing the Purpose for the Use of Banking Cards

Source: Authors’ analysis.

While determining the frequency of usage of
FinTech services among the respondents with dif-
ferent occupation, it is found that 76.1 percent
businessmen, 46.4 percent government/PSU ser-
vice holders, 80 percent professionals, 45.8 per-
cent students regularly use FinTech services.
However, it is also observed that agriculturist,
housewives, and retired persons are skeptical
toward adopting technology-based financial ser-
vices; according to the results of the survey, 21.1
percent agriculturists, 15.6 percent housewives,
and 16.7 percent retired persons (see Table 7)
rarely use FinTech services and the reason behind
the low use is the lack of education and most
importantly the misconception toward the FinTech
services. It is also evident from the chi-square test
where p < 0.05 that there is association between
occupation and the adoption of FinTech services.
Hence, the null hypothesis is rejected at 0.05 level
of significance.
Purposes for the Use of Debit/Credit Cards
The respondents use banking cards to withdraw
money from ATMs. However, 68 percent (see
Figure 1) respondents also use banking cards to
make payment at Point of Sale (PoS), to make
purchases from e-commerce companies, to make
payment at malls/ restaurants, and also to make
14 Emerging Economy Studies 6(1)
online purchase of flight, railway, and bus tickets.
This can be apparently seen that the use of digital
payments in the area of the study is increasingly
supplanting cash payments. However, cash still
dominates the payment of fees in both private and
government schools and colleges; thus, the schools
and colleges in the area of the study should also
promote cashless modes of payment.
It is also observed that 15 percent (see Figure 1)
of the respondents belonging to marginalized section
uses banking cards to withdraw cash from business
correspondents’ outlet and not for other purposes;
thus, this section of the bank customers should be
educated and motivated to use banking cards while
making purchases rather than only withdrawing
cash. The wider growth of technological innovations
and mobile penetration contributes to a transforma-
tion in the payment ecosystem, and adequate knowl-
edge and preparedness for these changes both by the
urban and rural people are imperative to reap the
benefits of seamless payments.
Perception About Technology-based
Financial Services
It can be observed from the figure that most of the
respondents, that is, 87, 86, and 100 percent (see
Figure 2) perceive that the technology-based
financial services are convenient and user friendly,
provide fast and quick services, provide a spend-
ing analysis, reduce cost of financial services, and
reduce the burden of handling cash. It is also seen
that 55 percent of the respondents did not favor the
fact that the apps can be used only for larger
amount of transactions. In addition, 86 percent of
the respondents did not support the fact that the
apps are convenient for educated only whereas
only 14 percent of the respondents perceive that
the technology-based services are suitable for edu-
cated which includes the respondents belonging to
the age group above 50 years (see Table 8). Out of
23 percent respondents who perceive that the tech-
nology-based financial services are unsecure, most
of them belong to the age category 40–50 years
and above 50 years (see Table 8). However, it is
also observed that 56 percent of respondents
belonging to the age group above 50 years per-
ceive that the apps are unsecure as compared with
3.8 and 31 percent respondents belonging to the
age group 29–39 years and 40–50 years (see Table
8). Thus, it can be understood that when it comes
to generational preferences millennials or genera-
tion Y and generation Z mostly use and trust tech-
nology-based financial services. The millennials
look for new digital products that are pertinent to
their day-to-day lives (Mcanley & Weiner, 2015).
However, generation X and baby boomers have
low trust on FinTech services and prefer visiting
bank branches. It is also seen that some older gen-
eration respondents also use these services but the
percentage is very low. The advancements in tech-
nology resulted in the generation of various ser-
vices for the benefit of the people, for example,
Abaris is an online marketplace for annuities
which provides retirement planning tools and edu-
cational content for the benefit of the customers
(Mcanley & Weiner, 2015). The advancement in
technology is bringing lots of benefits, and to
acquire such advantage trust and knowledge about
technology-based services by all the generations
are of primary importance. However, over reliance
is something different from trust and to avoid
cyberattacks the customers should eschew sharing
personal financial information and safeguard
themselves from risks.
Awareness and User Pattern of Bank
Customers Regarding Various
Technology-based Financial Services
While determining the usage and awareness of
various technology-based financial services
among the bank customers, it is seen that most of
the respondents, that is, 79 percent are aware about
Paytm, 63 percent about Google Pay and UPI, and
77 percent about net banking. It can also be
Das and Das 15
observed from Figure 3 that the awareness about
Policybazaar (24 percent), Capital Float (7 per-
cent), LendingKart (2 percent), NeoGrowth (1 per-
cent), and RevFin (0 percent) is very low. In
mobile banking space, the awareness about iMo-
bile app of ICICI bank (42 percent), Yono app of
SBI (42 percent), and Axis (37 percent) and HDFC
mobile banking (40 percent) is satisfactory
whereas the awareness about FinoBpay (1 per-
cent), RBL MoBank 2.0 (1 percent), and AGVB
mobile banking (20 percent) is low (see Figure 3).
Thus, the awareness about mobile remittance and
mobile payment app is high as compared with
FinTech services working in the lending space.
FinTech players are reshaping the way small busi-
nesses can access finance and help in improving
financial inclusion by bridging the colossal gap in
the demand and supply of SME loans, but in order
to avail the benefits proper knowledge about such
services is of utmost importance. Thus, FinTech
firms should take adequate measures to make peo-
ple aware especially in tier three and tier four cities
regarding the different services provided by them.
Figure 2. Showing the Perception of the Respondents Towards Various Technology-based Financial Services
(Color online)
Source: Authors’ analysis.
In addition, while discussing about the use of dif-
ferent technology-based financial services it is
observed that a large number of respondents, that
is, 66 percent use Paytm, 45 percent use Google
Pay, and the usage of mobile wallets such as
MobiKwik (6 percent), PhonePe (16 percent),
FreeCharge (12 percent) is very low. The usage of
net banking among the respondents is satisfactory,
that is, 44 percent but the use of other FinTech ser-
vices such as Policybazaar (7 percent), CapitalFloat
(0 percent), LendingKart (0 percent), NeoGrowth
(0 percent), RevFin (0 percent) is also very low
(see Figure 4). It is also seen that the respondents
are aware about mobile banking apps such as iMo-
bile, Yono, Axis, and HDFC mobile banking but
the usage is not very high. Thus, from the analysis
it is found that the awareness and the usage of
mobile wallets, that is, Paytm and Google Pay, are
high in the area of the study while the awareness
and use of other wallets such as FreeCharge,
PhonePe, MobiKwik, and the FinTech services in
the lending space such as Capital Float,
LendingKart, and RevFin is very low.
16 Emerging Economy Studies 6(1)

Figure 3. Showing the Awareness of the Respondents Regarding Various Technology-based Financial Services
Source: Authors’ analysis.

Figure 4. Showing the Usage of Various Technology-based Financial Services

Source: Authors’ analysis.

Constraints Faced by Bank Customers
in Using Various Technology-based
Financial Services
In order to find out the variables that has the
highest difficulty ratings, weighted scores of
Likert scales have been calculated (Tables 9
and 10). The ranges to measure the constraints
are grouped based on scales developed by
Brown (2010). The statement-wise weighted
score for difficulty level is calculated using the
following formula:
Das and Das 17

[N(SD) * (1) + N(D) * (2) + N(U) * 3 + N(U) = No. of respondents selecting undecided
N(A) * (4) + N(SA) * (5)]/N(R), N(A) = No. of respondents selecting agree
where N(SA) = No. of respondents selecting strongly
N(SD) = No. of respondents selecting strongly agree
disagree N(R) = Total number of respondents (Kostoulas,
N(D) = No. of respondents selecting disagree
2013).
Table 8. Showing the Age Wise Perception of the Respondents Regarding Various Technology-based Financial
Services

Age They are Convenient The Apps are User Friendly

(in
years) SD D N A SA SD D N A SA
18–28 0% 0% 0% 40.70% 59.30% 0% 0% 0% 16.70% 83.30%
29–39 0% 0% 0% 37.70% 62.30% 0% 0% 0% 5.70% 94.30%
40–50 0% 20.70% 0% 36.20% 43.10% 20.70% 0% 0% 12.10% 67.20%
Above
0% 30% 0% 44% 26% 34% 0% 0% 36% 30%
50
Service provided is fast and quick The apps provide a spending analysis
Age
SD D N A SA SD D N A SA
18–28 0% 0% 0% 3.70% 96.30% 0% 3.80% 0% 43.40% 52.80%
29–39 0% 0% 0% 3.80% 96.20% 0% 13.20% 0% 47.20% 39.60%
40–50 0% 0% 0% 6.90% 93.10% 0% 26.30% 0% 31.60% 42%
Above
0% 0% 0% 10% 90% 0% 44% 0% 28% 28%
50
The apps provide incentives and rewards Such services are unsecure
Age
SD D N A SA SD D N A SA
18–28 0% 0% 0% 42.60% 57.40% 0% 100% 0% 0% 0%
29–39 0% 0% 0% 49.10% 50.95% 0% 96.20% 0% 3.80% 0%
40–50 0% 0% 0% 29.30% 70.70% 0% 69% 0% 31% 0%
Above
0% 0% 0% 36% 64% 0% 34% 0% 56% 10%
50
Lack of net connectivity creates hindrance Reduces cost of financial transactions
Age
SD D N A SA SD D N A SA
18–28 7.40% 63% 11.10% 9.30% 9.30% 0% 0% 0% 42.60% 57.40%
29–39 11.30% 43.40% 17% 11.30% 17% 0% 0% 0% 37.70% 50.90%
40–50 22.40% 51.70% 0% 6.90% 19% 0% 0% 0% 48.30% 70.70%
Above
24% 10 0% 42% 24% 0% 0% 0% 54% 64%
50
(Table 8 Continued)
18 Emerging Economy Studies 6(1)

(Table 8 Continued)
Age They are Convenient The Apps are User Friendly
(in
years) SD D N A SA SD D N A SA
No need to carry cash It is convenient for educated only
Age
SD D N A SA SD D N A SA
18–28 0% 0% 0% 18.50% 81.50% 7.40% 63% 11.10% 9.30% 9.30%
29–39 0% 0% 0% 20.80% 79.20% 11.30% 43.40% 17% 11.30% 17%
40–50 0% 0% 0% 39.70% 60.39% 22.40% 51.70% 0% 6.90% 19%
Above
0% 0% 0% 28% 72% 24% 10% 0% 42% 24%
50
The use of such services is complicated Apps are used for larger amount of transactions
Age
SD D N A SA SD D N A SA
18–28 48.10% 51.90% 0% 0% 0% 85.20% 14.80% 0% 0% 0%
29–39 35.80% 64.20% 0% 0% 0% 54.70% 45.30% 0% 0% 0%
40–50 36.80% 38.60% 0% 25% 0% 31% 62.10% 6.90% 0% 0%
Above
6% 28% 20% 46% 0% 42% 36% 22% 0% 0%
50
Source: Authors’ analysis.

Table 9. Constraints Faced by the Bank Customers in Using Various Technology-based Financial Services

Strongly Disagree Undecided Agree Strongly

Disagree (%) (%) (%) (%) Agree (%)
High service charges 11 86 3 0 0
Absence of net connectivity 31 37 0 32 0
Poor speed of internet 30 38 4 27 1
Lack of technical knowhow 15 17 2 41 24
Transaction failure 25 34 0 41 0
Problem in the server 7 22 10 36 25
Problem of hacking 32 34 10 24 0
Low security (fraud messages, calls, etc.) 18 14 1 41 26
Documentation and formalities 74 26 7 5 0
Source: The authors.

Table 10. Weighted Average Score

Statements Highest Frequency (in Percentage) Weighted Average Score

High services charges Disagree (86) 1.91
(Table 10 Continued)
Das and Das 19

(Table 10 Continued)
Statements Highest Frequency (in Percentage) Weighted Average Score
Absence of net Disagree (37) 2.34
connectivity
Poor speed of internet Disagree (38) 2.32
Lack of technical Agree (41) 3.43
knowhow
Transaction failure Agree (41) 2.58
Problem in the server Agree (36) 3.53
Problem of hacking Disagree (34) 2.25
Low security (receiving Agree (41) 3.42
fraud calls, messages)
Documentation and Strongly disagree (74) 1.26
formalities
Source: The authors.

The cutoff score of the 5-point Likert scale
= (Maximum − Minimum)/Group
= (5 – 1)/5
= 0.80.
In order to give interpretations for the weighted
means, the statements should be converted into
interval of means of equal difference which is 0.80
in case of 5-point Likert scale.
1 to 1.80 (Strongly disagree)
1.81 to 2.60 (Disagree)
2.61 to 3.40 (Undecided)
3.41 to 4.20 (Agree)
4.21 to 5 (Strongly agree)
From the means of equal difference given above
and ranging from 3.41 to 4.20, it is seen that the
points of highest difficulties faced are lack of
technical knowhow while using the technology-
based financial services, problem in the server, and
low security such as receiving fraud calls and
messages. In this context, adequate awareness
while using the FinTech services such as not to type
the password more than twice if the transaction is
not being processed at a time should be given to the
users as this will save them from the web of
hackers. Also appropriate system should be put into
place which will mitigate the problem in the server
and eventually improve usage. In addition, with the
progression in technology the issue of cybersecurity
is also growing which creates threats in the minds
of the customers and they resort to traditional
methods of transactions. Thus, regular monitoring
of transaction will help in reducing such problems.
However, a legislation of data protection is also
necessary to shield the bank customers against such
fraudulent practices (Reserve Bank of India, 2017).
Although cybersecurity rules exist in our country,
they are still under development; thus the service
providers should be wary about the cyber
vulnerability so that they do not harm their future
prospect (Imarticus Learning Inc., 2018).
Findings
1. The FinTech services are perceived to be
convenient, user friendly, spending ana-
lyzer, and quick. FinTech reduces cost of
transactions and the risk of handling cash.
Older generation respondents (age group
50 years and above) perceived that the use
20 Emerging Economy Studies 6(1)
of such services is complicated; also the
respondents belonging to this age category
believe that the FinTech services are unse-
cured. In addition, 29.8 percent of the
respondents with educational qualification
below or till HSLC find that the technol-
ogy-based financial services are compli-
cated as compared with 2.4 and 8.2 percent
of postgraduates and graduates. It is
observed from the study that the older gen-
eration has a misconception toward the
FinTech services which is the principal
reason for lack of trust and use of FinTech
services. Another important factor which
hinders the adoption of such services is
lack of education. Thus, it is found from
the study that respondents belonging to
generation Y and generation Z mostly use
and have positive attitude toward the tech-
nology-based services while baby boomers
and generation X are trying to embrace
FinTech services rather than being depend-
ent on traditional modes of transactions but
the ratio is significantly lower as compared
with the younger generations.
2. Gender gap is observed in the use of
FinTech services which is biased among
males. It is found that 43.1 percent females
have never used FinTech services against
16.8 percent males (see Table 3); also so
far frequency of usage is concerned and
similar trend is observed. In addition, busi-
nessmen, professionals, and service hold-
ers are regular users of FinTech services as
compared with agriculturists and house-
wives. However, it is also found from the
study that the retired persons are skeptical
toward the adoption of FinTech services
and prefer visiting bank branches. Also,
while considering the age of the respond-
ents, the adoption of such services is found
more among the respondents belonging to
up to 39 years of age, average among the
respondents belonging to the age group
40–50 years, and low among the respond-
ents belonging to the age category above
51 years. Thus, it is the natural association
with technology and gadgets among the
youth which prompts them to use FinTech
services. Apart from this, lack of trust and
awareness and association with technology
hinder the older generation people to adopt
technology-based services. The people
above 50 years have used and experienced
the manual financial transactions most of
the time, fast change in the mode of trans-
actions drive them out of their comfort
zone which is why they do not want to
indulge in FinTech. But digital payment
has become a part of the game hence there
is no choice but to adopt sooner or later.
3. The use of digital payments in the area of
the study is increasingly replacing the
traditional modes of payment. However, it
is also observed that the respondents
belonging to the marginalized sections use
debit cards only to withdraw money from
Business Correspondents’ outlet and cash is
still influencing the payment of fees both in
government and private schools in the area
of the study. Although the payment-based
FinTech services have received tremendous
adoption in the area of the study but this is
not the case with the FinTech firms working
in the lending space. The sellers of those
services should conduct literacy program to
make people aware about such services and
improve usage.
4. The highest difficulties faced by the
respondents while using FinTech services
are problem in the server, lack of technical
knowhow while using the technology-
based services, and also low security such
as receiving fraud calls and messages.
Regular monitoring of transactions can
lessen the cyber vulnerability and also
Das and Das 21
adequate systems should be put in place to
reduce server problem.
5. It is also found from the study that psychological
barrier, lack of confidence in the system, and
inhibition in virtual transactions among the less
educated and also the respondents belonging to
older generation have an impact on the
adoption of FinTech services.
Suggestions
The use of FinTech services is found more among the
younger generation, thus new space should be
provided to them to promote better and efficient use
of such services. The awareness and use of FinTech
services is very low among the bank customers
belonging to older generation, housewives, and
agriculturists and the reason for low use is
unawareness and misconception. Thus, steps should
be taken to improve the awareness and discern the
customers that such services are dependable because
there is no choice and the adoption of technology is
inevitable. The banks conduct financial literacy
camps where the people are taught about the benefits
of opening bank accounts but such program have not
been able to bring overall empowerment among the
people. Thus, the banks along with the major FinTech
firms, local nongovernmental organizations (NGOs),
and microfinance institutions (MFIs) should try to
conduct literacy program to educate people regarding
the benefits of using technology-based financial
services, conduct investor education camp, and also
reduce the misconception among the customers
regarding the FinTech services. The banks with
additional remuneration to Business Correspondents
can educate the rural customers regarding the benefit
of using FinTech services. In addition, financial
literacy kiosks may be set up at different places under
the jurisdiction of bank branches and alongside the
Automated Teller Machines with user-friendly
software in vernacular languages, volunteers may be
engaged in the local area to help the people navigating
the kiosks. Also in this milieu, requisite steps should
be taken to mitigate the problem of poor speed of
internet and appropriate softwares should be
developed to avert hacking.
Conclusion
With the smartphone penetration and outpouring
of technological innovations, the bank customers
have espoused to various FinTech services. The
traditional cash-driven economy is now moving
toward cashless and paperless mode of transac-
tions. Consistent with the research results of
Carlin, Olafsson, and Pagel (2017), it is found that
the benefits of FinTech service is enjoyed more by
the younger generation as compared with the baby
boomers. Hence, it will be salient to improve
awareness so that there is acceleration in the usage
of FinTech services as it will reduce the cost of
financial services and help in providing access
even in the remote areas of the country. The usage
of the services offered by the FinTech firms will
rise only when the awareness level improves and
it is pivotal for the lending-based FinTech compa-
nies to expand their services in the northeastern
region of India because although the payment-
based financial services are used by substantial
number of customers the lending and insurance-
based FinTech services are not experiencing sig-
nificant extension in the area of the study. It is
also consistent with the results of Hu, Ding, Li,
Chen, and Yang (2019) that the users’ attitude
toward FinTech services depends on their trust
regarding such services. Consequently, the secu-
rity should be strengthened so that the users have
positive attitudes toward using such services and
the users should also be careful while using the
FinTech services in order to safeguard themselves
from cyber threats. In summary, proper knowl-
edge, government support, proper grievance
mechanism can create positive attitude toward
adoption of technology-based financial services.
22 Emerging Economy Studies 6(1)
FinTech will ensure financial inclusion that will
result in bringing the unbanked to the banking
sector. This will make the formal financial system
robust and will help to channelize the resources
untapped so far toward the economic growth of
the country.
Declaration of Conflicting Interest
The authors declared no potential conflicts of interest
with respect to the research, authorship, and/or publica-
tion of this article.
Funding
The authors received no financial support for the
research, authorship, and/or publication of this article.
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