Reputation and its consequences in Fintech services: the case of mobile banking

Abstract

PurposeRecently, traditional financial institutions are facing strong competition from disruptive innovators (Fintech firms) forcing them to increasingly invest in new IT solutions to maintain their competitive edge. However, there are still advantages that traditional financial institutions enjoy, of which the primary one may be reputation. Surprisingly, the firm reputation link to use intention has not received much attention in the literature, prompting this research. The purpose of this study is to examine the firm reputation link to use intention in the context of mobile banking.Design/methodology/approach The results are based on a survey of 783 participants in Vietnam.FindingsThe study confirmed that reputation plays an important role in promoting use intention for mobile banking. Additionally, perceived risk and trust are also linked to perceived usefulness (PU) and perceived ease-of-use (PEOU).Originality/valueThis study is among the first to link perceived risk and trust to PU and PEOU in a mobile banking context. Based on the Theory of Reasoned Action, the study adds to the literature by connecting two separated research themes: technology adoption and reputation. It also suggests avenues for both traditional banks and Fintech firms to set their business strategies to enhance their reputation or collaborate for mutual benefits.