A Model of Trust in Fintech and Trust in Insurtech: How Artificial Intelligence and the Context Influence it

Zarifis A. & Cheng X. (2022) ‘A model of trust in Fintech and trust in Insurtech: How Artificial Intelligence and the context influence it’, Journal of Behavioral and Experimental Finance, vol. 36, pp.1-20. Available from: https://doi.org/10.10

7 Pages Posted: 19 Oct 2022

See all articles by Alex Zarifis

Alex Zarifis

University of Southampton; University of Cambridge - Cambridge Judge Business School

Xusen Cheng

Renmin University of China

Date Written: September 1, 2022

Abstract

Finance and insurance are being transformed by Artificial Intelligence (AI). Nevertheless, the consumer is not passive in this process and there is some inhibition to trust. This research models trust in Fintech and trust in Insurtech. The two models are then compared to evaluate if trust in both is similar. Multigroup Structural Equation Modelling is used to evaluate if the model is equally valid for Fintech and Insurtech. The model presented here shows that trust in both Fintech and Insurtech are formed by (1) Individuals psychological disposition to trust, (2) Sociological factors influencing trust, (3) Trust in either the financial organization or the insurer and (4) Trust in AI and related technologies. The results of the multigroup analysis show that the model is equally valid for Fintech and Insurtech. This is particularly useful as these services are often offered by the same organization, or even the same mobile application.

Keywords: Fintech, Insurtech, Artificial Intelligence, Trust, Finance, Insurance

JEL Classification: G00, G22, G20, G30, M15, M20

Suggested Citation

Zarifis, Alex and Cheng, Xusen, A Model of Trust in Fintech and Trust in Insurtech: How Artificial Intelligence and the Context Influence it (September 1, 2022). Zarifis A. & Cheng X. (2022) ‘A model of trust in Fintech and trust in Insurtech: How Artificial Intelligence and the context influence it’, Journal of Behavioral and Experimental Finance, vol. 36, pp.1-20. Available from: https://doi.org/10.10, Available at SSRN: https://ssrn.com/abstract=4223846

Alex Zarifis (Contact Author)

University of Southampton ( email )

Southampton Business School
Southampton
United Kingdom

University of Cambridge - Cambridge Judge Business School ( email )

Trumpington St.
Cambridge, CB21AG
United Kingdom

Xusen Cheng

Renmin University of China ( email )

59, Zhongguancun South Street
Haidian District
Beijing, Beijing 100872
China

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