Determinants of FinTech service utilization and access factors: case of Palestine

Purpose This study addresses the challenges of accessibility to financial technology (FinTech) services in emerging markets, focusing on Palestine as a case study. The purpose of this study is to examine the determinants influencing access to and usage of FinTech services in this context, amidst the unprecedented disruptions faced by the conventional financial system due to decentralization and the removal of physical barriers in the dynamic landscape of FinTech. Design/methodology/approach To investigate the determinants shaping FinTech access and usage, the study uses a robust multinomial generalized linear model regression analysis. The analysis is based on a nationally representative secondary survey dataset on financial inclusion from the year 2022. The study uses the theory of planned behavior (TPB) to dissect the factors influencing FinTech usage, adding a distinctive layer to existing literature, particularly within the specific context of a developing country like Palestine. Findings The study reveals significant insights into the challenges of financial inclusion in Palestine. Economic conditions and individual income levels emerge as formidable obstacles impacting both the accessibility and utilization of FinTech services. These factors intertwine with motivational and attitudinal behaviors among the surveyed population. A noteworthy finding is the nuanced revelation that individual motivation plays a more potent role than attitude in steering the decision-making process surrounding FinTech adoption. The findings contribute to a deeper understanding of FinTech dynamics in emerging markets. Research limitations/implications The paper not only contributes valuable insights to academic discourse but also formulates pragmatic policy recommendations tailored for both policymakers and FinTech service providers. While providing valuable insights, this study is not without limitations. The study focuses on Palestine, and the extent to which findings can be extrapolated to other emerging markets requires careful consideration. Furthermore, the research acknowledges the complexity of individual motivations, and the TPB may not capture all relevant psychological factors influencing FinTech adoption. These limitations should be taken into account when interpreting the results in the field of FinTech in emerging markets. Practical implications The paper not only contributes valuable insights to academic discourse but also formulates pragmatic policy recommendations tailored for both policymakers and FinTech service providers, mainly in creating and/or improving an enabling environment for FinTech-based microfinance services, such as alternative financing products tailored to specific underserved segments that cannot afford the costs of traditional financial services. Originality/value This research introduces original contributions to the existing literature by applying the TPB to dissect the determinants of FinTech usage within the specific context of a developing country, Palestine. The study goes beyond conventional analyses by exploring the intricate interplay between economic conditions, individual income levels, motivational factors and attitudinal behaviors in shaping FinTech access and usage. This innovative approach adds a distinctive layer to current research on FinTech dynamics in emerging markets.