Banking Goes Digital: The Adoption of FinTech Services by German Households
13 Pages Posted: 7 May 2019
Date Written: March 22, 2019
Germany is falling behind its peers in adopting new digital technologies and financial services offered by non-bank high-tech startups (e.g., FinTech). Using survey data, we analyze which FinTech services households are likely to adopt. Our results indicate that a household’s level of trust and comfort with new technologies, financial literacy, and overall transparency impact its propensity to switch to a FinTech. Specifically, households with low levels of trust, good financial education, and preference for transparency are characterized by a higher probability of adopting FinTech. In contrast, household price perceptions do not appear to significantly impact switching probability.
Keywords: Non-bank financial institutions, FinTech (financial technology), digital banking, financial services, switching behavior, technology acceptance model
JEL Classification: G2, G23, E21, D8
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