Adoption of fintech business models, its perceived risks and benefits: evidence from Nelson Mandela Bay Metropolitan Municipality
- Authors: Qodi, Siyasanga
- Date: 2025-04
- Subjects: Financial services industry -- Information technology , Macroeconomics , Banks and banking -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/73587 , vital:79485
- Description: Financial technology has become one of the most noticeably advancing technologies in the financial sphere, allowing banks, businesses and individuals to make and receive payments from anywhere in the world. This financial technology operates with different business models characterise by some levels of risks and which affect its adoption by potential users. Fintech was introduced shortly after the 2008 global financial crisis which saw both the economic and financial industries crumble as the traditional banking system lost confidence. In South Africa, therefore, a division of fintech was introduced within the South African Reserve Bank to explore and oversee the financial technology implementation or innovation. Although fintech may be associated with perceived risk, this risk may not be the same for all models as each model of fintech operation presents different facets of risk and this has not been adequately explored in the existing literature. Therefore, the main objective of this study is to investigate the impact of perceived risks and benefits of different fintech business models on its adoption by existing and prospective users in Nelson Mandela Bay Metropolitan Municipality using primary data. Specifically, the study seeks to, to assess different business models of fintech and associated perceived risk factors and benefits by existing and prospective users in NMBM. Investigating the influence of perceived risk factor of each business model on fintechadoption in NMBM., to investigating the influence of perceived benefits of each business model on fintech adoption in NMBM. To address objective one on different business models of fintech, descriptive statistics analysis was conducted. Findings reveal the use of different business models such as mobile payment, wealth management, peer-to-peer lending, automated teller machines (ATM), eWallet and quick loan in the study area. To address the second objective on the influence of perceived risks on the adoption of fintech, structure equation model (SEM) was used. Findings reveal that economic benefit, convenience and transaction process have a positive significant impact on the adoption of eWallet, mobile payment, peer-to-peer lending, wealth management, ATMand quick loan. However, financial, legal, security and operational risks have a positive significant impact on the adoption of peer-to-peer lending, and a negative significant impact on the adoption of wealth management and eWallet. Based on the findings, it is recommended that financial institutions, especially banks, should implement high-tech security measures to minimise risk and mitigate the negative effects of fintech on users and consumers. This is because consumers and users consider the benefits and dangers of adopting fintech. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2025
- Full Text:
- Date Issued: 2025-04
Fintech and the financial services industry in South Africa
- Authors: Crouse, Johann Jacques
- Date: 2019
- Subjects: Banks and banking -- Data processing , Banks and banking -- Technological innovations , Financial services industry -- Information technology , Banks and banking
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/38046 , vital:34311
- Description: A preliminary literature review indicated that little to no research exists on the Fintech phenomena in the South African context. The purpose of this study is to gain the perceptions of South African bankers on the Fintech phenomena and to develop a deeper understanding of the Fintech phenomena in the South African context. An empirical exploratory qualitative approach was employed and an interpretivism research paradigm was utilised. A detailed literature review was conducted into the Fintech phenomena as well as the financial services sector in South Africa. The use of purposive sampling was initiated, and the sample of the study consisted of five individuals who work for the largest South African banks. The data was gathered through in-depth structured interviews which consisted of ten predetermined research questions. Rich data was obtained which was then analysed through the use of content analysis and coding. This enabled the transcription of data and the extraction of codes which assisted in obtaining findings that answered the research question. Authenticity, rigor, trustworthiness and credibility criteria was applied from the onset and throughout the research study. The themes that emerged from the data analysis process were navigated so that findings could be reached by comparing the themes to previous literature. In conclusion, six themes emerged from the data analysis, namely; collaboration can create new markets and create market share, investing in Fintech to overcome legacy infrastructure by going digital, Fintech companies are more customer focused, balance regulation between protecting the industry and creating an innovative environment competition in future will be fiercer, competition is good for the performance of the financial services industry and the Fintech phenomena is positive for the banking industry. Certain findings and conclusions were drawn; regulations in South Africa do allow for innovation, regulation is not biased towards banks, banks innovate and collaborate through Fintech, Fintech is positive for the banking industry, South African banks are investing in preparation for Fintech, South African banks have limited budgets, there is no significant loss of market share for banks due to Fintech companies, market share can be gained by banks partnering with Fintech companies and the future of the financial services industry in South Africa.
- Full Text:
- Date Issued: 2019