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Strategic recommendations for financial technology service development: a comprehensive risk-benefit IPA-Kano analysis

Amalia Suzianti (Industrial Engineering, Universitas Indonesia Depok Indonesia)
Fannisa Rahma Haqqi (Industrial Engineering, Universitas Indonesia Depok Indonesia)
Safira Nurul Fathia (Industrial Engineering, Universitas Indonesia Depok Indonesia)

Journal of Modelling in Management

ISSN: 1746-5664

Article publication date: 25 August 2021

Issue publication date: 29 November 2022

874

Abstract

Purpose

This study aims to purpose a strategy for Financial Technology (Fintech) service development to increase user adoption of Fintech services.

Design/methodology/approach

A conceptual model based on a risk-benefit approach was adopted based on the theory of reasoned action, the theory of planned behaviour and technology acceptance models. The partial least squares structural equation modelling method was used to test the proposed model and estimate the relationship between constructs. The results are used to develop strategies, which are then categorised based on the integration of an importance-performance analysis and the Kano model.

Findings

The results show that trust, economic benefit and convenience significantly influence users to adopt Fintech services, whereas privacy awareness, financial risk and legal risk factors affect user trust. A strategy for consumer protection against security threats and financial losses warrants the highest priority for improvement.

Practical implications

The findings of this study can help Fintech product managers classify their service improvements and help regulators make the appropriate policy decisions related to customer security and the adoption of Fintech.

Social implications

There are some limitations of this research that should be noted. First, the research target respondents were millennials who have been statistically proven to have the highest affinity in using Fintech services. Second, the Fintech services used in this research were only mobile payments, peer-to-peer lending and crowdfunding. Future research could expand the number of research respondents to improve research validity, including other Fintech services or focus on one Fintech service at a time for targeted results and consider moderation variables, such as customer experience with Fintech services based on age and gender.

Originality/value

This study contributes to the development of new frameworks for evaluating Fintech adoption intention based on a risk-benefit approach. It also presents strategy recommendations to be implemented by Indonesian Fintech companies.

Keywords

Acknowledgements

Declaration of Interest: The authors report no conflict of interest.

Citation

Suzianti, A., Haqqi, F.R. and Fathia, S.N. (2022), "Strategic recommendations for financial technology service development: a comprehensive risk-benefit IPA-Kano analysis", Journal of Modelling in Management, Vol. 17 No. 4, pp. 1481-1503. https://doi.org/10.1108/JM2-11-2020-0297

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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