Architectural Dynamics of Fintech Innovations and Digital Financial Services: Empirically Understanding Consumer Trust, Perceived Risk and Financial Inclusion

Digital financial services and financial technologies have revolutionized the retail banking sector. Payments and intermediation of money has changed dramatically with the advent of these innovations. Many international development organizations have touted the power of digital financial services to promote financial inclusion. However there is still uncertainty if the rapid penetration of digital financial services leads to real financial inclusion or leads to creation of inactive bank accounts. This paper seeks to understand what drives people to adopt digital financial services and convert these services to increased financial wellbeing. Data was collected from 650 individuals across rural, semi urban and urban economies through a questionnaire. Data was analyzed using Pearson Correlations to identify correlations between variables and Multiple Linear Regression to better understand what drives digital financial service use and financial inclusion. Findings reveal that while perceived ease of use and usefulness lead to higher likelihood of adopting digital financial services consumer trust had the highest impact.