Unveiling the nexus: unravelling the dynamics of financial inclusion, FinTech adoption and societal sustainability in Malaysia
Journal of Financial Reporting and Accounting
ISSN: 1985-2517
Article publication date: 23 July 2024
Abstract
Purpose
This study aims to examine the impact of perceived benefits-risk dynamics on financial inclusion, the factor driving fintech adoption, the mediating effects of financial inclusion on perceived benefit-risk dynamics and fintech adoption, and the societal sustainability effects of fintech adoption.
Design/methodology/approach
This study used a quantitative study with 258 respondents in Sarawak, Malaysia. PLS-SEM was used to investigate the associations.
Findings
This study suggests that only non-monetary benefits and regulatory risks significantly influence financial inclusion. In addition, financial inclusion acts as an intermediary for non-monetary benefits and regulatory risks. Besides, a direct relationship exists between financial inclusion and fintech adoption, as well as between fintech adoption and societal sustainability.
Research limitations/implications
This model explores a few benefits and risks. Also, technological and legislative changes may alter research outcomes. Besides, this study only samples Sarawak, Malaysia. Therefore, country-specific factors, including technology infrastructure, financial services accessibility and cultural variations, may affect participant responses. This study offers a novel perspective on fintech by including Valence, Public Good and Sustainable Information Society theories.
Practical implications
Financial inclusion’s non-monetary benefits must be emphasised to remove barriers and meet user requirements. Fintech firms should also work with authorities to comply with regulations and help marginalised populations by prioritising sustainability.
Social implications
Fintech growth requires innovation, consumer protection and fair competition. Fintech firms can enhance financial inclusion to address inequalities (SDG10). Governments and fintech solutions should incorporate financial and digital literacy into education (SGG4).
Originality/value
Financial inclusion, fintech adoption and societal sustainability are examined using emotional, sociological and societal sustainability aspects.
Keywords
Acknowledgements
Funding: This work was not funded by any specific funds from public, commercial or non-profit organisations.
Ethics approval and consent to participate: This study complied with the Declaration of Helsinki. Respondents who took part in the survey provided written informed consent for their participation. The online survey participants were instructed to review the ethical statement displayed at the beginning of the Google Form. The statement clarified that there would be no pay for their participation and no known risks involved. Strict confidentiality will be maintained for all information. Participation is entirely optional, and you have the right to decline at any point and progress only if you give your consent. Data was not obtained from those below the age of 16.
Competing interests: The author(s) declare(s) that they have no competing interests.
Availability of data and materials: The data will be furnished upon request.
Citation
Hiew, L.-C., Lam, M.-T. and Ho, S.-J. (2024), "Unveiling the nexus: unravelling the dynamics of financial inclusion, FinTech adoption and societal sustainability in Malaysia", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-12-2023-0791
Publisher
:Emerald Publishing Limited
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