Fintech in the eyes of Millennials and Generation Z (the financial behavior and Fintech perception)

  • Received February 17, 2020;
    Accepted July 14, 2020;
    Published August 3, 2020
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/bbs.15(3).2020.03
  • Article Info
    Volume 15 2020, Issue #3, pp. 20-28
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This study investigates the Millennials and Gen Z perception toward Fintech services, their usage intention, and their financial behavior. The study took place in the Palestinian context with a global comparison among these generations. The authors used the questionnaire-based technique to meet the study objective. West Bank respondents were selected for this purpose; the study instrument was distributed through different social media channels. The findings show that reliability/trust and ease of use are the main issues in using a financial service. Millennials are more aware (48%) of Fintech services than Gen Z (38%), which is different from the global view where Gen Z is the highest. The smartphone penetration rate is 100% among both generations, while the financial inclusion ratio in Palestine is around 36.4%; these clear indicators are the main Fintech drivers to promote Fintech services in Palestine, and these are global indicators for Fintech adoption intention. Both generations (84%) intend to use e-wallet services, Millennials (87%) and Gen Z is (70%) prefer using real-time services. Half of the respondents see that Fintech plays a complementary role with banks. The majority see that Fintech services are cheaper than bank services. Wealth management, and robot advisor services, and both generations are looking to acquire them in the long run. The authors revealed that 85% of respondents from both generations trust banks, so it is recommended that banks digitize their financial services to meet the customers’ needs, considering that 90% of respondents see that promotions are a key issue in adopting Fintech services. Promoting e-wallet services by banks is highly recommended due to the massive rivalry with Fintech parties.

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    • Table 1. Respondent’s financial behavior (study instrument items)
    • Table 2. Respondent’s Fintech perception (study instrument items)
    • Conceptualization
      Mohannad A. M. Abu Daqar, Samer Arqawi, Sharif Abu Karsh
    • Data curation
      Mohannad A. M. Abu Daqar, Sharif Abu Karsh
    • Formal Analysis
      Mohannad A. M. Abu Daqar, Samer Arqawi, Sharif Abu Karsh
    • Funding acquisition
      Mohannad A. M. Abu Daqar, Samer Arqawi, Sharif Abu Karsh
    • Investigation
      Mohannad A. M. Abu Daqar, Samer Arqawi, Sharif Abu Karsh
    • Methodology
      Mohannad A. M. Abu Daqar, Samer Arqawi, Sharif Abu Karsh
    • Resources
      Mohannad A. M. Abu Daqar, Sharif Abu Karsh
    • Software
      Mohannad A. M. Abu Daqar, Samer Arqawi
    • Validation
      Mohannad A. M. Abu Daqar
    • Visualization
      Mohannad A. M. Abu Daqar
    • Writing – original draft
      Mohannad A. M. Abu Daqar, Samer Arqawi, Sharif Abu Karsh
    • Writing – review & editing
      Mohannad A. M. Abu Daqar, Samer Arqawi, Sharif Abu Karsh
    • Project administration
      Samer Arqawi, Sharif Abu Karsh
    • Supervision
      Sharif Abu Karsh