Digital financial services adoption: the role of trust and government intervention as mediators

Purpose This study aims to explore the mediating roles of trust and government intervention in shaping intentions to adopt digital financial services (DFS), using the Unified Theory of Acceptance and Use of Technology (UTAUT) to evaluate the predictive significance of its constructs on DFS adoption intentions. Design/methodology/approach A self-administered online survey was conducted across Malaysia, generating 525 valid responses. Partial least squares structural equation modelling (PLS-SEM) was used to assess both the measurement and structural models, enabling a comprehensive evaluation of the proposed hypotheses. Findings The results indicate that performance expectancy, effort expectancy, social influence, trust and government intervention significantly and positively influence the intention to adopt DFS. Trust mediates the relationships between performance expectancy, social influence, facilitating conditions and adoption intentions. Additionally, government intervention enhances the effects of social influence and facilitating conditions on DFS adoption intention. Research limitations/implications The findings offer vital insights for financial institutions and policymakers, emphasising the importance of trust and government involvement in promoting DFS adoption. These results are increasingly relevant as countries transition to digital currencies and cashless economies. Originality/value This study presents an innovative model for understanding DFS adoption intentions. It is among the few studies to investigate the mediating roles of trust and government intervention in DFS adoption within developing country contexts, contributing to the extension of the UTAUT framework in digital finance research.