Navigating Fintech adoption through the role of perceived benefits and risks: the moderating role of generational cohorts

Purpose This study examines (1) the influence of the multidimensional perceptions of benefits and risks on the adoption of Fintech services and (2) the moderating impact of generational cohorts (Gen Y vs Gen Z) on those relationships in (1). Design/methodology/approach The data is collected via an online survey of 400 randomly selected Fintech users in Malaysia, between December 2021 and February 2022. The proposed Fintech adoption model, developed by integrating the net valence framework (NVF) and generational cohort theory (GCT), is tested using the structural equation modeling (SEM) and the multigroup confirmatory factor analysis (MCFA). Findings The findings reveal that monetary and non-monetary benefits significantly influence Fintech adoption, but perceived risks do not. The difference in specific benefit impacts is detected in generational cohorts. Research limitations/implications This study implies that in promoting Fintech adoption, industry players must leverage Fintech benefits but simultaneously, be selective in choosing benefits that suit the preferences of different generations. The insignificant influence of perceived risks could be taken to signal users’ lack of awareness about the potential losses associated with Fintech usage, thus more efforts should be directed toward educating them. Originality/value This study integrates GCT into NVF to determine the generational cohort impact on the roles of perceived benefits and risks in influencing Fintech adoption.