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Banking goes digital: The adoption of FinTech services by German households

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  • Jünger, Moritz
  • Mietzner, Mark

Abstract

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.

Suggested Citation

  • Jünger, Moritz & Mietzner, Mark, 2020. "Banking goes digital: The adoption of FinTech services by German households," Finance Research Letters, Elsevier, vol. 34(C).
    • Handle: RePEc:eee:finlet:v:34:y:2020:i:c:s154461231930296x
    DOI: 10.1016/j.frl.2019.08.008
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    References listed on IDEAS

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    More about this item

    Keywords

    Non-bank financial institutions; FinTech (financial technology); Digital banking; Financial services; Switching behavior; Technology acceptance model;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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