FACTORS AFFECTING ADOPTION OF FINTECH IN NEPAL

Purpose – The study aims to explore the factors affecting adoption of fintech in Nepal and measures relationship and impact among those factors. Design/methodology/approach – The study adopted descriptive and casual comparative research design and convenient sampling techniques. A sample size of 352 respondents while 70 questionnaires were used for the study. Hence, the study makes use of ordinary least square regression to test the hypotheses formulated for the adoption of fintech in Nepal. Findings – The study finds that perceived usefulness (PU) is the most significant factor driving fintech adoption, with a strong positive correlation and a highly significant relationship in the OLS regression analysis. Additionally, perceived ease of use (PEU), perceived awareness (PA), perceived risk (PR), perceived cost (PC), and trust in technology (TT) all have significant positive relationships with fintech adoption, though their influence is generally weaker than that of PU. Research limitations – The study’s limitations include a small, non-representative sample and the potential for bias in survey responses, as well as the inability to establish cause and effect due to its cross-sectional nature. Practical implications – Fintech companies in Nepal should focus on making their services more useful, easy to use, and trustworthy by designing user-friendly products, ensuring transparency, and maintaining strong security. Additionally, they should offer competitive pricing and clear communication to address cost concerns and build trust among users. Originality/value – This study is a novel contribution in studying factor affecting adoption of fintech in Nepal by examining the dependent and independent variables; i.e., Perceived Awareness, Perceived Usefulness, Perceived Risk, Perceived Ease of Use, Perceived Cost and Trust in Technology.