Evaluating Blockchain Influence on Trust and Security in FinTech Using PLS-SEM

The rapid evolution of financial technology (Fin-Tech) has driven the adoption of emerging innovations, including Blockchain, to address persistent issues related to trust and transaction security. Blockchain’s decentralized architecture and cryptographic mechanisms offer potential solutions for enhancing transparency, user confidence, and data protection in digital financial services. This study aims to evaluate the influence of Blockchain technology on user trust and security perceptions within the FinTech sector. A quantitative research design was employed using a structured survey distributed to 150 active users of Blockchain-based financial platforms. The collected data were analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the relationships between Blockchain adoption, trust, and security. The empirical findings reveal that Blockchain technology exerts a significant positive impact on both trust (path coefficient = 0.68) and security (path coefficient = 0.72), indicating robust associations. The results suggest that Blockchain’s transparency fosters greater user trust, while its cryptographic features and decentralized structure enhance data security in financial transactions. These findings underscore the critical role of Blockchain in strengthening the reliability and resilience of FinTech services. Consequently, financial institutions are encouraged to integrate Blockchain strategically to improve user confidence and reinforce secure transaction frameworks. This research contributes to the growing body of knowledge on FinTech innovation and offers practical insights for stakeholders aiming to enhance digital trust and safeguard financial ecosystems.