THE ROLE OF URBANISATION IN DRIVING FINTECH ADOPTION: EVIDENCE FROM THE GLOBAL FINDEX DATASET

Research Problem: While FinTech adoption has been widely studied through factors such as income, education, and gender, the influence of urbanisation remains underexplored. Given the growing role of digital financial services in global inclusion strategies, there is a need to understand how spatial location shapes adoption patterns. Methods/Theory: This study draws on data from the World Bank Global Findex Database (2014, 2017, 2021). Guided by the Technology Acceptance Model, Diffusion of Innovation theory, and Financial Inclusion frameworks, it employs descriptive statistics, t-tests, ANOVA, and regression models. Country–demographic groups serve as the unit of analysis, enabling a comparison between urban and rural populations across regions and income levels. Results: Findings show that urban residents consistently exhibit higher adoption rates than rural populations, with an average global gap of 9.8 percentage points. The relationship is statistically significant (t = 3.59, p < 0.001, d = 0.64). The gap is most pronounced in low- and middle-income countries, though ANOVA results on income-level differences did not reach statistical significance due to limited sample size. Younger and higher-income groups in urban settings also display stronger adoption rates. Conclusion: Urbanisation is a structural driver of FinTech adoption, with infrastructural advantages concentrated in cities. Key Contribution to Knowledge: The study extends behavioural models of FinTech adoption by integrating spatial and infrastructural dimensions, demonstrating that geography is as critical as individual demographics. Recommendation: Policy interventions must target rural infrastructure, digital literacy, and inclusive regulation to narrow spatial divides in FinTech adoption.