AN ANALYTICAL EXAMINATION OF THE IMPACT OF FINTECH INNOVATIONS ON THE INVESTMENT BEHAVIOUR OF RETAIL INVESTORS

Abstract

Financial Technology (FinTech) has revolutionized the banking and investment landscape by integrating advanced digital technologies into financial services, thereby improving accessibility, efficiency, and customer experience. The rapid growth of digital banking, mobile payment systems, online investment platforms, and artificial intelligence has significantly transformed customer e-banking behaviour. The present study, titled "Smart Banking Era: Evaluating the Impact of FinTech Innovations on Customer E-Banking Behaviour," aims to examine customers' awareness of FinTech innovations, adoption and usage of FinTech services, behavioural factors influencing FinTech adoption, and the challenges and barriers associated with the use of FinTech in banking and investment activities. The study is based on a descriptive research design using both primary and secondary data. Primary data were collected through a structured questionnaire from 220 respondents selected using the convenience sampling technique. The collected data were analysed using Percentage Analysis, Independent Sample t-test, One-Way ANOVA, Mann–Whitney U Test, and other appropriate statistical tools with the support of SPSS software. The findings indicate that respondents possess a satisfactory level of awareness regarding FinTech innovations and their applications in investment and e-banking services. The study reveals that age significantly influences customers' awareness of FinTech innovations, while gender does not significantly influence the adoption and usage of FinTech platforms. The analysis further shows that occupation significantly affects certain behavioural factors, particularly the use of FinTech tools for portfolio management, reliance on digital platforms for executing trades, and perceptions regarding the ease and convenience of FinTech services. In addition, the study identifies that security concerns vary significantly based on respondents' area of residence, whereas other barriers such as lack of knowledge, fear of fraud, usability issues, and lack of guidance do not differ significantly across residential areas. The study concludes that FinTech innovations have substantially enhanced customer e-banking behaviour by providing convenient, efficient, secure, and technology-driven financial services. However, improving digital financial literacy, strengthening cybersecurity measures, enhancing customer awareness, and ensuring regulatory support are essential for increasing customer confidence and encouraging the wider adoption of FinTech services. The findings of the study provide valuable implications for banks, FinTech companies, policymakers, financial institutions, and researchers in developing effective strategies to promote digital financial inclusion and sustainable growth in the banking sector.