Determinants of investment-related FinTech services among retail investors of India: a multi-group analysis using PLS-SEM
Abstract
Purpose
The purpose of this study is to investigate the factors affecting behaviour intention (BI) to use and actual usages of investment-related FinTech services among the zoomers (Gen Z) and millennials (Gen M) retail investors of India.
Design/methodology/approach
The study explores the predictive relevance of actual adoption behaviour among the two different age categories of Indian retail investors. It uses the Unified Theory of Acceptance and Use of Technology-2 and the prospect theory framework as guiding frameworks. Data has been collected from 294 retail investors, actively engaged in the investment-related FinTech services. The multi-group analysis using variance-based partial least square structured equation modelling has been used to compare the two groups. The invariance between the two groups was achieved through measurement invariance assessment.
Findings
The study reveals distinct factors significantly affecting BI to use investment-related FinTech services among Gen Z and Gen M retail investors are performance expectancy (PE) to BI, perceived risk (PR) to BI, price value (PV) to BI and PR to service trust (ST).
Research limitations/implications
This study provides insights for financial providers and policymakers, emphasizing different factors influencing BI to use investment-related FinTech services in both age groups. Notably, habit emerges as a common factor influencing the actual usage of investment-related FinTech services across Gen M and Gen Z retail investors in India.
Originality/value
This study explores the heterogeneous behaviour of the heterogenous population in the domain of technological adoption of investment-related FinTech services in India.
Keywords
Acknowledgements
The part of the paper has been presented at MERC (Management Education and Research Colloquium) Conference 2023 organised by IIM Kashipur. This paper has also received the award of Best Paper in Finance.
Funding: The authors received no external financial support for the research, authorship and/or publication of this article.
Declaration of conflicting interest: The author declares no conflict of Interest among the authors regarding the idea of research, research methodology, collection and analysis of data and publication of the paper.
Citation
Jha, S. and Dangwal, R.C. (2024), "Determinants of investment-related FinTech services among retail investors of India: a multi-group analysis using PLS-SEM", Journal of Modelling in Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JM2-01-2024-0025
Publisher
:Emerald Publishing Limited
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