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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