Bridging the Digital Divide: Unraveling the Determinants of FinTech Adoption in Rural Communities

Bridging the digital divide between urban and rural communities is critical for expanding financial inclusion. The purpose of this study is to understand the key factors driving the adoption of financial technology (FinTech) applications among rural residents. A conceptual framework is built on the basis of the technology acceptance model, along with the incorporation of innovation awareness and financial awareness. The relationships between factors are empirically validated using a structural equation modeling approach based on survey data from a sample of 386 respondents in rural communities. The results indicate that perceived usefulness, perceived ease of use, innovation awareness, and financial awareness can positively and significantly affect the intention to adopt FinTech applications. In addition, perceived usefulness mediates the relationship between perceived ease of use and behavioral intention. Practical implications for promoting FinTech adoption in rural areas are discussed. We investigate the key factors driving the adoption of financial technology (FinTech) applications among rural residents. The findings reveal that: (1) The extended TAM model is suitable for studying FinTech adoption in a rural context. (2) Perceived usefulness, perceived ease of use, innovation awareness, and financial awareness positively and significantly affect the intention to adopt FinTech applications. (3) Perceived usefulness mediates the relationship between perceived ease of use and behavioral intention. We suggest that policymakers can offer education and training programs to improve financial literacy and financial awareness, promoting the use of FinTech products. FinTech products should be simple to use and navigate for rural residents who might not be as tech-savvy. It is important to foster a culture of innovation in rural areas by providing incentives for entrepreneurship and innovation.