Fintech Adoption in Palestine: Bank Customers’ Perspectives

Abstract

This study aimed to investigate the extent to which financial technology (Fintech) is adopted in Palestine from the perspective of bank customers. The researcher meant to analyze various, significant dimensions such the barriers, advantages, components, and risks of adopting the Fintech. The study adopted a descriptive-analytical approach using a questionnaire as a main tool for the study. The study population consisted of bank clients or customers; and a sample of 500 customers of the most important Palestinian banks was selected randomly. The study concluded that the level of total adoption of financial technology in Palestine is medium; the main findings of the study also showed a high relative significance of both the barriers and risks of using Fintech, especially with regard to the preference of traditional banking operations or transactions over the use of electronic services due to the absence of clear laws and legislations that aim to protect banking transactions and dealings using electronic services. Furthermore, the study results showed that the relative importance of the advantages and components of Fintech has decreased despite the reduction in transaction costs by exempting electronic banking services from any commissions and/or fees. With regard to the demographic variables, the researcher found that there were no differences in the adoption of financial technology (Fintech) in Palestine that could be attributed to participants’ gender, age, or the bank they work for, while there were differences attributed to the variables of the city in which the bank is located and educational level of the study participants. The study concluded with several recommendations; the most important of which was the need for banks and bank administrations to enhance their customers’ confidence in electronic banking services by providing an adequate technical infrastructure for the adoption and use of financial technology in Palestine.