Understanding User Adoption of Immersive FinTech in Banking: A Conceptual Framework Integrating Trust and Perceived Risk

The rapid evolution of Financial Technology (FinTech) has positioned immersive technologies, particularly Augmented Reality (AR) and Virtual Reality (VR), as promising innovations capable of transforming the future of digital banking. By delivering interactive, personalized, and engaging financial experiences, immersive banking has the potential to enhance customer engagement, improve financial decision-making, and support broader objectives of digital transformation. Nevertheless, technological innovation alone is insufficient to ensure widespread customer acceptance. Psychological factors—especially trust and perceived risk—remain fundamental determinants of users' willingness to adopt immersive financial services (Gefen et al., 2003; Kim et al., 2008). This conceptual review integrates the Technology Acceptance Model (TAM) (Davis, 1989), the Theory of Planned Behavior (TPB) (Ajzen, 1991), and trust–risk theory to propose the Trust–Risk–Adoption Framework for understanding customer adoption of AR/VR-enabled banking services. By synthesizing fragmented literature, the study identifies critical research gaps related to immersive banking adoption, trust formation, sustainability, and digital governance while highlighting opportunities for future empirical investigation. Overall, this study contributes to the growing body of knowledge on immersive FinTech by providing a comprehensive theoretical foundation for understanding customer behaviour in emerging digital financial environments. The proposed framework offers valuable guidance for researchers, financial institutions, technology developers, and policymakers seeking to foster secure, trustworthy, and sustainable immersive banking ecosystems. As AR/VR technologies continue to evolve, understanding the interplay between technological innovation, trust, and perceived risk will be essential for achieving responsible digital transformation and promoting the successful adoption of next-generation banking services.

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