Data Security and Consumer Trust in Fintech Adoption

I. Introduction

In recent years, the financial landscape in India has undergone a profound transformation with the rapid integration of technology giving rise to a dynamic sector known as Financial Technology or Fintech (Barraso & laborda 2022). The importance of this technology is growing rapidly and becoming mandatory in most sectors around the world (Jalal, Mubarak & Durani, 2023). Technology can be optimized to improve productivity and performance. Fintech basically promotes innovative strategies in the financial sector. India is one of the world’s fastest-growing economies and home to a burgeoning population of tech-savvy individuals, and India has embraced fintech services with remarkable enthusiasm. The convergence of finance and technology has not only disrupted the traditional financial paradigm but has also ushered in a new era of financial inclusion, accessibility, and innovation (Singh & Chaturvedi, 2021). An emerging economy like India is adopting Fintech with an objective of achieving financial inclusion goals. Fintech is the game changer in financial inclusion due to its innovative technology. From digital payment solutions and peer-to-peer lending platforms to robo advisors and blockchain applications, fintech services in India have spurred unprecedented changes in the way individuals, businesses, and even the governments manage and interact with financial systems (Senyo & Osabutey 2020). According to Statista (2023), Fintech has been a rapidly growing industry in India. As an economy with the second largest internet user base (Figure 1), India quickly adapted to the world of Fintech. The fintech market in India was valued at 584 billion USD in 2022.

The growth of Fintech and the use of the internet has contributed enormously to the transformation of the Indian economy in terms of monetary policy and inflation (Mittal et al., 2023). Moreover, the rise of Fintech has ushered in a new era of customer centricity and convenience Pareek et al. (2020). Traditional financial institutions are no longer the sole gatekeepers of financial services. Consumers can now effortlessly manage their finances, invest, and transact with just a few taps on their smartphones. This shift has forced traditional banks to adapt and innovate, thereby enhancing the overall quality of services available to consumers. However, as Fintech continues to reshape the financial landscape, it also brings forth a host of challenges Rajendran et al (2023).