Risk Factors Affecting Customer Adoption of Fintech in the Financial Services Sector

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This chapter delves into the complex landscape of Fintech services, highlighting both their transformative potential and the perceived risks that hamper widespread adoption. The chapter aims to bridge the knowledge gap in perceived risks and offers strategic guidance for banks and Fintech companies to mitigate these concerns, fostering safer and more effective integration of Fintech solutions into the financial ecosystem. The findings revealed that Fintech innovations like P2P lending, crowdsourcing, and blockchain have increased transparency, reduced costs, and facilitated greater accessibility of financial information. However, the study identifies significant concerns, including financial, legal, security, operational, and productrelated risks, which influence consumer reluctance. Employing the theory of reasoned action, the chapter analyzes both the benefits and risks associated with Fintech, providing insights into why consumers might hesitate to adopt these technologies.