The Effect of Financial Literacy on the Adoption of FinTech Services in the Mfoundi Division, Cameroon

Abstract

This study investigates the effect of financial literacy on the adoption of FinTech services within the Mfoundi Division of the Centre region of Cameroon. A quantitative research approach was employed, using a questionnaire to collect data from a total of three hundred individuals were purposively sampled and data was collected through the use of structured questionnaires guided by parameters as observed in the Technology Adoption Model (TAM). Hypotheses were tested using the CB-SEM technique with analytical packages including SPSS 24 and AMOS 23. The findings revealed limited utilization of online banking and peer-to-peer lending platforms, with cryptocurrency exchanges and crowd-funding platforms ranking as the least utilized instruments. Additionally, the study establishes a significant influence of both financial knowledge and financial behaviour on the adoption of FinTech services. Individuals who comprehend the financial benefits of FinTech and perceive these services as innovative solutions are more likely to adopt them. This positive attitude is driven by the perceived ease of use, transaction tracking, and the potential to generate income through FinTech solutions. However, this paper did not find any statistically significant effect of financial skills on the adoption of FinTech services. Therefore, financial knowledge and a positive attitude toward FinTech services emerged as pivotal factors positively influencing financial services adoption in the Mfoundi Division, Cameroon. The study therefore recommends that policy makers and fintech service providers should prioritized financial literacy programs aim at improving financial knowledge and a positive attitude to enhance the adoption of FinTech services in Cameroon.