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Adoption of Fintech by Financial Institution: Impact on Customer Satisfaction, Loyalty and Financial Performance

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BUSINESS RESEARCH

Adoption of FinTech by Financial Institution:

Impact on Customer Satisfaction, Loyalty and Financial Performance

Individual Assignment

Liau Jia Liang

MBS151059

BR: MBSA1713 – Business Research

Masters in Business Administration

UTM – International Business School

Prepared for: Dr Nomahaza Mahadi

Table of Content

No

Page

CHAPTER 1

Introduction

1.1

Research Background

1

1.2

Problem Statement

4

1.3

Research Questions

7

1.4

Research Objectives

8

1.5

Significance of Study

8

1.6

Financial Technology as the Research Context and Its Rationale

9

1.7

Definition of the Study Variables

10

1.8

Organization of the Study

12

CHAPTER 2

Literature Review

2.1

Introduction

13

2.2

Financial Technology

2.2.1

Digitalization of the banking industry

14

2.2.2

Definition of financial technology

15

2.2.3

Significance of financial technology

15

2.3

Relationship between the adoption of FinTech by financial institution and customer satisfaction

18

2.4

Relationship between the adoption of FinTech by financial institution and customer loyalty

20

2.5

Relationship between the adoption of FinTech by financial institution and financial performance

21

2.6

Moderating Variable: Age Factor

22

2.7

Proposed Framework

24

2.8

Summary

26

CHAPTER 3

Research Methodology

3.1

Introduction

27

3.2

Research Design

27

3.3

Variable and Measure

28

3.4

Questionnaire Design

31

3.5

Sampling Design

33

3.5.1

Population

34

3.5.2

Sampling Frame and Location

34

3.5.3

Sampling Method

34

3.5.4

Sampling Unit

35

3.5.5

Sample Size

35

3.6

Reliability Analysis

35

3.7

Data Collection Procedures

36

3.8

Data Cleaning and Processing

37

3.9

Data Analysis Technique

37

3.10

Summary

38

References

40


CHAPTER 1

INTRODUCTION

1.1 Research Background

The development in information technology has a huge impact on the financial services sector. Mainly due to digitalization of processes, consumers are changing habits and minimizing physical interaction with financial institutions (Cuesta, C., Ruesta, M., Tuesta, D., & Urbiola, 2015). Financial Technology, also known as FinTech, is an emerging field that applies technology to enhance financial activities. Using new technology and innovation, FinTech based companies disrupt the traditional business model of financial institutions (T. Puschmann, 2017). This new competitive environment has forced the banks to transform their digitalization process in an urgent manner so that they will not leave behind by the rising FinTech companies.

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