An Analytical Study on Perceived Use of Financial Technology by Millennials


  • Dr. Rashmy Moray, Dr. Vanishree Pabalkar


The purpose of the study is to understand the behaviour of the IT millennials in financial planning and investment using technology and estimate the potential market for fintech companies. In the ages of technology managing finance in modern life has brought challenges to the millennials brining significant gulf between financial literacy and financial confidence. Indian retail financial industry is undergoing tremendous transformation, financial advisors have been replaced by robot advisors which use big data and algorithms appealing to a whole new generation of investors by understanding their risk return appetite. The digital revolution is transforming the way millennials access financial products and services. Considering these aspects, there is a need to study the behaviour of millennials in spending on financials and long term planning. Fintech companies need to understand the trends, patterns and financial habits of millennials to offer solutions that are free, easy to use and customise their services. Equally imperative to understand the millennials perspective on financial management to tap the growing need of financial planning.

The study uses the extended technology acceptance model (TAM Davis, 1989) to understand the variables that affect use of fintech. TAM is a base to evaluate customer’s approval of online services (Stoel and Ha, 2009). Perceived ease of use (PEOU) and perceived usefulness (PU) are the two external variables of TAM (Davis, 1989). In this paper TAM is extended by accumulating trust as additional variable that affects intention to use. This paper reveals that PEOU, PU and Trust significantly affect usage and adoption behaviour of fintech by millennials.

Design/methodology/approach-The paper takes the form of an exploratory design that includes; review of literature, and survey method

Findings-Fintech has a great impact on investment and financial planning of IT millennials. Considering the millennials investment and financial patterns, the regulators, financial advisors, franchisor, vendors and website owners need to give a re look at the positioning strategies for providing effective services and customised products to achieve their financial goals.

Originality/value–The study covers both the aspects of fintech as well as the investment behaviour of the millennials in the Digital era by contextualizing the perspective of millennials.