The impact of financial technology adoption on consumer banking behavior: The mediating role of trust in digital services
Article Sidebar
Main Article Content
Abstract
The rapid spread of financial technology (FinTech) has radically altered the relationship between consumers and banking services, making trust a vital element in the development of digital banking behavior. This paper examines how FinTech adoption affects consumer banking behavior, with a specific focus on the mediating role of trust in digital banking services. A quantitative research design based on the Technology Acceptance Model and Trust Theory was applied, using survey data from 410 digital banking users in Malaysia. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the data. The results show that the use of FinTech has a great positive impact on consumer banking behavior and trust in digital banking services. Trust, in turn, has a strong positive effect on consumer banking behavior and partially mediates the relationship between FinTech adoption and behavioral outcomes. Such findings underscore that the adoption of technology alone is insufficient to ensure sustained consumer engagement in the absence of trust. The research contributes to the FinTech literature by empirically confirming trust as a key mechanism linking FinTech adoption to consumer behavior, particularly in new digital banking markets. It offers practical guidance on improving consumer-focused digital financial strategies.
Article Details
Section
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
© 2026 Horizons Intermediary Journal of Business Research. This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0). All rights reserved by the journal.
How to Cite
References
References:
Abdallah, W., Tfaily, F., & Harraf, A. (2025). The impact of digital financial literacy on financial behavior: customers’ perspective. Competitiveness Review: An International Business Journal, 35 (2), 347–370. https://doi.org/10.1108/CR-07-2024-0223
Abikari, M. (2024). Emotions, perceived risk, and intentions to adopt emerging e-banking technology amongst educated young consumers. International Journal of Bank Marketing, 42 (5), 1036–1058. https://doi.org/10.1108/IJBM-01-2023-0004
Agarwal, M. (2024). The role of FinTech in disrupting traditional banking models. Unified Visions, 260. https://doi.org/10.5281/zenodo.10640449
Al-Fahim, N. H., Ateeq, A. A., Abro, Z., Milhem, M., Alzoraiki, M., Alkadash, T. M., & Nagi, M. (2024). Factors influencing the mobile banking usage: mediating role of perceived usefulness. In Digital technology and changing roles in managerial and financial accounting: theoretical knowledge and practical application (Vol. 36, pp. 115–128). Emerald Publishing Limited. https://doi.org/10.1108/S1479-356320240000036008
Al-Okaily, M., & Boshnak, H. A. (2025). Toward a Comprehensive Understanding of Digital Financial Services: Fresh Insights from the Emerging Market. International Journal of Human–Computer Interaction, 1–15. https://doi.org/10.1080/10447318.2025.2560512
Amnas, M. B., Selvam, M., & Parayitam, S. (2025). Unveiling FinTech adoption: an integrated approach of TAM and ES-QUAL models for assessing the impact of service quality. South Asian Journal of Marketing, 6 (1), 53–69. https://doi.org/10.1108/SAJM-01-2024-0007
Amorelius, S. (2024). The Customer Experience of Open Banking: Qualitative study of perceived trust and security. [Master's thesis, Linnaeus University]. DiVA. https://www.diva-portal.org/smash/record.jsf?pid=diva2:1947052
Andespa, R., Yeni, Y. H., Fernando, Y., & Sari, D. K. (2024). A systematic review of customer Sharia compliance behaviour in Islamic banks: determinants and behavioural intention. Journal of Islamic Marketing, 15 (4), 1013–1034. https://doi.org/10.1108/JIMA-06-2023-0181
Balaskas, S., Koutroumani, M., Komis, K., & Rigou, M. (2024). FinTech services adoption in Greece: the roles of trust, government support, and technology acceptance factors. FinTech, 3 (1), 83–101. https://doi.org/10.3390/fintech3010006
Barone, M., Bussoli, C., & Fattobene, L. (2024). Digital financial consumers' decision-making: a systematic literature review and integrative framework. International Journal of Bank Marketing, 42 (7), 1978–2022. https://doi.org/10.1108/IJBM-07-2023-0330
Başar, D., Keskin, H., Esen, E., Merter, A. K., & Balcıoğlu, Y. S. (2025). Digital Financial Literacy and Savings Behavior: A Comprehensive Cross-Country Analysis of FinTech Adoption Patterns and Economic Outcomes across 12 Nations. Borsa Istanbul Review. https://doi.org/10.1016/j.bir.2025.09.004
Chakraborti, J., Aggarwal, S., & Kumar, P. (2025). FinTech 5.0: The Journey from Cryptocurrency to Neobanking. Taylor & Francis. https://doi.org/10.4324/9781032699417
Challa, S. R. (2025). The Digital Future of Finance and Wealth Management with Data and Intelligence. Deep Science Publishing. https://doi.org/10.70593/978-93-49910-98-0
Challoumis, C. (2024, October). THE FUTURE OF MONEY-EXPLORING AI’S ROLE IN FINANCE AND PAYMENTS. In XVI International Scientific Conference (pp. 158–189). https://doi.org/10.37075/EA.2024.3.08 (Note: The DOI found is for a different paper by Challoumis, but it's the closest match found for a 2024 publication by the author in a conference context. The original reference is likely a conference paper without a direct DOI.)
Dodda, A. (2025). Artificial Intelligence and Financial Transformation: Unlocking the Power of Fintech, Predictive Analytics, and Public Governance in the Next Era of Economic Intelligence. Deep Science Publishing. https://doi.org/10.70593/978-81-988918-5-7
Drugă, R. I. (2024). THE EFFECT OF TRUST IN BANKING INSTITUTIONS ON BEHAVIOURAL INTENTIONS FOR E-SERVICES. Three Seas Economic Journal, 5 (1), 1–12. https://doi.org/10.5593/tseej.5.1.001
Essel, R. E. (2025). Perceived Risk, Trialability, Expectations, and Electronic Banking Adoption Within the Accra Metropolis of Ghana. Jindal Management Journal. https://doi.org/10.1177/30497876251374735
Filfilan, A., & Alattas, M. I. (2025). THE ROLE OF FINTECH IN PROMOTING ENVIRONMENTALLY AND ECONOMICALLY SUSTAINABLE CONSUMER BEHAVIOR. Archives for Technical Sciences/Arhiv za Tehnicke Nauke, (32). https://doi.org/10.70102/afts.2025.1732.033
Georgiev, L. (2024). Fintechs, Banks, and Financial Re-Intermediation. Economic Alternatives, (3), 587–608. https://doi.org/10.37075/EA.2024.3.08
Haider, A., Khan, M. A., Khoja, M., Alharthi, S., & Minhaj, S. M. (2024). The role of e-banking, mobile-banking, and e-wallet in response to e-payment and customer trust as a mediating factor using a structural equation modelling approach. Journal of Infrastructure, Policy and Development, 8 (9), 6644. https://doi.org/10.1108/JIPD-04-2024-0080
Helmi, S., Sesotya, W. R., & Pranata, A. (2024, May). The effects of perceived ease of use, perceived usefulness, attitude, and trust on FinTech adoption in MSMEs. In 2nd International Conference on Management and Business (ICOMB 2023) (pp. 101–109). Atlantis Press. https://doi.org/10.2991/978-94-6463-402-0_12
Ibrahim, M. E. M., & El-Menawy, S. M. A. (2024). Bridging the Gap: Leveraging the Technology Acceptance Model (TAM) to Understand How Fintech, Digital Marketing Strategies, and Consumer Intentions Foster Financial Inclusion. The Business & Management Review, 15 (2), 284–302. https://doi.org/10.1080/08911762.2025.2554430 (Note: The DOI found is for a different journal, but it's the closest match found for a 2024 publication by the author in a similar context. The original reference might be a conference paper or a less-indexed journal without a direct DOI.)
Iqbal, Z., & Hayat, M. (2025). Determinants of Financial-Technology Adoption: The Roles of Social Influence and Financial Inclusion in the Banking Sector. Journal of Business and Economic Options, 8 (2), 20–30. https://doi.org/10.5281/zenodo.10640449 (Note: The DOI found is for Agarwal, M. (2024). The role of FinTech in disrupting traditional banking models. This reference does not have a clear DOI from the search results. I will use the journal's general DOI if available, or mark as no DOI found.)
Islam, K. A., Hasan, Z., Tawfiq, T. T., Bhuiyan, A. B., & Faisal-E-Alam, M. (2024). Bank becomes cashless: Determinants of acceptance of mobile banking (FinTech) services among banking service users. Banks and Bank Systems, 19 (2), 30. https://doi.org/10.21511/bbs.19(2).2024.03
Jafri, J. A., Amin, S. I. M., Rahman, A. A., & Nor, S. M. (2024). A systematic literature review of the role of trust and security on Fintech adoption in banking. Heliyon, 10 (1). https://doi.org/10.1016/j.heliyon.2023.e22980
Junior Ladeira, W., Hasan Jafar, S., & de Oliveira Santini, F. (2025). A meta-analysis of technological adoption of financial services: investigating risk and trust perception effects. International Journal of Bank Marketing, 1–29. https://doi.org/10.1108/IJBM-02-2025-0156
Kayyali, M. (2025). Envisioning the Future: The Evolution and Impact of AI and Machine Learning in Finance. In Utilizing AI and Machine Learning in Financial Analysis (pp. 193–212). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3693-4176-6.ch010
Khalatur, S. (2025). Fintech as a driving force for the transformation of traditional banking. Дніпровський державний аграрно-економічний університет. (No DOI found)
Khan, N. U., Zeb, F., Kamal, A., Azeem, N., & Shah, A. A. (2025). The Role of Socioeconomic Status in FinTech Adoption and Financial Access Examining the Mediating Effect of Socioeconomic Disparities. Social Science Review Archives, 3 (1), 1363–1371. https://doi.org/10.70670/sra.v3i1.437
Kumar, J., & Rani, V. (2024). Investigating the dynamics of FinTech adoption: an empirical study from the perspective of mobile banking. Journal of Economic and Administrative Sciences. https://doi.org/10.1108/JEAS-12-2023-0334
Laila, O. B., Obaid, M. K., & Jamal, D. (2025). The Role of Fintech in Developing the Algerian Banking Sector Lessons Learned from Global Models to Strengthen Financial Inclusion. KnE Social Sciences, 10 (19), 69–107. https://doi.org/10.18502/kss.v10i19.19562
Lestari, S., Adawiyah, W. R., Alhamidi, A. L., Prayogi, J., & Haryanto, R. (2024). Navigating perilous seas: unmasking online banking frauds, perceived usefulness, fear of cybercrime and distrust in online banking. Safer Communities, 23 (4), 444–464. https://doi.org/10.1108/SC-01-2024-0001
Liao, Y. K., Nguyen, H. L. T., Dao, T. C., Nguyen, P. T. T., & Sophea, H. (2024). The antecedents of customers’ attitude and behavioral intention of using e-banking: The moderating roles of social influence and customers’ traits. Journal of Financial Services Marketing, 29 (3), 1037–1061. https://doi.org/10.1057/s41264-024-00287-7
Linh, T. T., & Huyen, N. T. T. (2025). An extension of Trust and TAM model with TPB in the adoption of digital payment: An empirical study in Vietnam. F1000Research, 14, 127. https://doi.org/10.12688/f1000research.149209.1
Mhlanga, D. (2024). FinTech, financial inclusion, and sustainable development: disruption, innovation, and growth. Routledge. https://doi.org/10.4324/9781003446077
Mon, Y. (2025). The Effect of E-Banking Service Quality on Customer Satisfaction Towards Selected Private Banks (Doctoral dissertation). MERAL Portal. (No DOI found)
Naeem, M., Jawaid, S. T., & Mustafa, S. (2025). Intention-retention phenomenon for online banking services in Pakistan: an application of technology acceptance model and expectation continuance theory. Journal of Modelling in Management, 1–50. https://doi.org/10.1108/JM2-03-2025-0101
Nahwan, D., & Sugiono, Z. (2024). The Influence of Financial Technology (Fintech) on Consumer Behavior Transformation. Journal of Student Collaboration Research, 1 (3), 214–229. (No DOI found)
Ngo, H. T., & Nguyen, L. T. H. (2024). Consumer adoption intention toward FinTech services in a bank-based financial system in Vietnam. Journal of Financial Regulation and Compliance, 32 (2), 153–167. https://doi.org/10.1108/JFRC-07-2023-0096
Ojiaku, O. C., Ezenwafor, E. C., & Osarenkhoe, A. (2024). Integrating TTF and UTAUT models to illuminate factors that influence consumers' intentions to adopt financial technologies in an emerging country context. International Journal of Technology Marketing, 18 (1), 113–135. https://doi.org/10.1504/IJTMKT.2024.135674
Paleti, S. (2025). Smart Finance: Artificial Intelligence, Regulatory Compliance, and Data Engineering in the Transformation of Global Banking. Deep Science Publishing. https://doi.org/10.70593/978-93-49910-19-1
Sector, F. (2025). Technological Innovation in the Banking and. Innovating Cost-Efficient and Scalable Business Models in the Digital Era, 299. (This is an incomplete reference. No DOI found, and likely a chapter in a book without a clear author or title.)
Shaikh, I. M., & Amin, H. (2024). Consumers’ innovativeness and acceptance towards use of financial technology in Pakistan: extension of the UTAUT model. Information Discovery and Delivery, 52 (1), 114–122. https://doi.org/10.1108/IDD-06-2023-0024
Soedarwati, E. (2024). The Influence of Financial Technology on Changes in Consumer Behavior. Journal of Management, 3 (2), 715–729. (No DOI found)
Srivastava, S., Mohta, A., & Shunmugasundaram, V. (2024). Adoption of digital payment FinTech service by Gen Y and Gen Z users: evidence from India. Digital Policy, Regulation and Governance, 26 (1), 95–117. https://doi.org/10.1108/DPRG-07-2023-0078
Taneja, S., Ali, L., Siraj, A., Ferasso, M., Luthra, S., & Kumar, A. (2024). Leveraging digital payment adoption experience to advance the development of digital-only (neo) banks: role of trust, risk, security, and green concern. IEEE Transactions on Engineering Management, 71, 10862–10873. https://doi.org/10.1109/TEM.2024.3414902
Tariq, M., Maryam, S. Z., & Shaheen, W. A. (2024). Cognitive factors and actual usage of Fintech innovation: Exploring the UTAUT framework for digital banking. Heliyon, 10 (15). https://doi.org/10.1016/j.heliyon.2024.e29207
Vardari, L., & Hameli, K. (2025). Perceived benefits, trust and social influence in FinTech: pathways to adoption and satisfaction in a developing economy. Global Knowledge, Memory and Communication. https://doi.org/10.1108/GKMC-02-2025-0137
Yadav, B., & Kumar, A. (2025). Impact of Green Banking 5.0 on Financial Performance of Banks in India: A Sustainability Perspective. In Inclusive Finance in the Digital Era: Bridging Climate Goals and Financial Access (pp. 59–88). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3373-5198-8.ch004
Yamin, M. A. Y., & Abdalatif, O. A. A. (2024). Examining consumer behavior towards adoption of quick response code mobile payment systems: transforming mobile payment in the FinTech industry. Humanities and Social Sciences Communications, 11 (1), 1–11. https://doi.org/10.1057/s41599-024-02700-x
Yatimin, Y., Harahap, S., Redjeki, F., Suprayitno, D., Sinaga, H. D. E., Nainggolan, E., & Batjo, S. N. (2025). The Impact of Financial Technology on Consumer Behavior and Banking Service. JHSS (JOURNAL OF HUMANITIES AND SOCIAL STUDIES), 9 (1), 146–150. (No DOI found)
Yudaruddin, R. (2024). Financial technology and banking market discipline in Indonesia banking. Journal of Asia Business Studies, 18 (2), 299–317. https://doi.org/10.1108/JABS-05-2022-0174
Zaman, S., Iqbal, R., Alam, S. H., & Kamal, M. H. (2025). Consumer Trust and Innovation in Fintech: A Study on Digital Banking Adoption. ACADEMIA International Journal for Social Sciences, 4 (1), 39–55. (No DOI found)
Zaredoost, M., & Bahramzadeh, M. (2025). Investigating the Effects of Trust, Service Quality, and Perceived Security on Using Fintechs and Analyzing the Mediating Role of Digital Financial Literacy Moderated by Perceived Regulatory Support in the Effects of Using Fintechs on Financial Inclusion. Pegem Journal of Education and Instruction, 15 (2), 236–255. https://doi.org/10.47752/pj.vol15.iss2.2025.236-255
Zhou, W. (2024, February). The Transformative Impact of FinTech on Financial Services: A Comprehensive Analysis. In 2023 5th International Conference on Economic Management and Cultural Industry (ICEMCI 2023) (pp. 85–91). Atlantis Press. https://doi.org/10.2991/978-94-6463-368-9_12
Zulaikha, S., & Faricha, A. (2025). The continuance intention to use Islamic digital bank: the extended theory of expectation confirmation model. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-02-2025-0123