Determinants of Digital Investment Platform Adoption for SIP Mutual Fund Investments: The Roles of Technology Readiness, Trust, and Financial Self-Efficacy

Abstract

As financial technology continues to proliferate, the investment process of SIP mutual funds has undergone a significant change with investors being able to invest through digital platforms which provides convenience, transparency and efficient portfolio management. However, there are significant variations in technology readiness, confidence and trust of investors that limit the adoption of the technology. The present study focuses on the relationship between technology readiness, trust and financial self-efficacy with adoption of digital investment platform by retail SIP investors of mutual fund. Technology Readiness Theory, Technology Acceptance Model, and the Social Cognitive Theory are combined in a conceptual model to address the adoption behaviour of investors. The hypothesis suggested relationships will be tested with a quantitative research design using a structured questionnaire and Partial Least Squares Structural Equation Modelling (PLS-SEM). The study will show that technology readiness has a positive effect on adoption, financial self-efficacy directly affects adoption and it also serves as a mediator between technology readiness and adoption, and trust positively impacts adoption. The findings are likely to benefit the literature of behavioural finance and FinTech, and give guidelines to the mutual fund companies, digital investment platforms, and policymakers to enhance participation of investors in digital investment services.