Fintech Risks and Continuance to Use on Generation Z

Abstract

Purpose: Most fintech users will be the generation Z; thus, understanding the generation Z is essential. This study is aimed to explore the relationship between financial risk, legal risk, security risk, and operational risk with risk in using fintech. This study also examines fintech risk influence on generation Z’s intention to continuance to use fintech.   Theoretical framework: Previous studies (Darmiasih & Setiawan, 2020; Leon & Diana, 2020; Putritama, 2019; Ryu, 2018) analyzed the relationship between risk and fintech use continuance by excluding the generation Z perspective from the study. This study fills the research gap by focusing on Generation Z.   Design/methodology/approach:  This study adopts a quantitative approach. This study distributes online questionnaires to Generation Z in Indonesia. This study utilized the Partial Least Square approach to answer the research question using 199 responses earned from the country survey. The analysis is assisted by SmartPLS 3.2.8 software.   Findings: The analysis result showed a positive relationship between financial risk, legal risk, security risk, and operational risk with risk in using fintech. This study also found a negative relationship between fintech risk and Generation Z’s intention to continuance to use fintech among Generation Z   Research, Practical & Social implications:  This study gives a new insight into the fintech industry in anticipating future failure in the business.   Originality/value: This study finding provides a new perspective (Generation Z) on fintech use and risk investigation, which was rarely conducted in the previous studies most publications.