Traditional banking interactions in non-digital environment, while digital banking interests through network technology. Digital banking products and services have unique types and characters that traditional banking service don not provide. For example, digital banking enables users to carry out range of banking products electronically at any time and place at low costs and processing fees (Mbama & Ezepue 2018; Keisidou et al. 2013; Amin 2016. In this way, digital banking has a significant role in operating and fixed cost reduction (Belanche, Casaló & Flavián
(2019);Tohang, Lo &Anggraeni2021), adding to that it helps the bank to build better and strong customer relationship with their customers (Amin 2016). despite the increasing number of digital banking users, however poor service quality is the common concern to customers. In fact, Amin (2016) and Garg et al. (2014) reveal that customer service quality, online information system quality and banking service product quality are the main dimensions of Fintech service quality in finance industry.
The importance of service quality in service provider-client relationships has been emphasized in many prior studies (Parasuraman, Zeithaml & Berry 1988; Lee 2009; Zhang et al. 2018). Also, many recent studies on the functionality aspects of online systems and activities in the service industry were testing the employment of SERVQUAL (Parasurman et al 1988) in banks, hotels and insurance companies (Mbama & Ezepue 2018; Keisidou et al. 2013; Amin 2016), which affects customer experience (Garg et al. 2014). Kotler and Armstrong (2012) view customer satisfaction and loyalty toward perceived service after the post-purchase evaluation of products and services. Researchers have debated the influence of service quality on customer satisfaction, whilst some believe that service quality leads to satisfaction and increases customer loyalty, others think the opposite (Ting 2004). The studies of Keisidou et al. (2013), Kaura et al. (2015) and Mbama & Ezepue (2018) in the digital banking context suggest service quality leads to increase customer satisfaction, and bank profitability (Ladhari et al., 2011). Levey and Hino (2016) suggested that service quality mediates overall customer satisfaction and loyalty in utilizing online banking. Also, Amin (2016) and Raza et al. (2015) study internet banking service quality in Saudi Arabia and Pakistan, respectively and its relationship to customer satisfaction and loyalty. They found that service quality improves the probability of customer satisfaction increase and consequently leads to loyal customer and strong provider-client relationship.
Moreover, Clemes (2008) found that quality dimensions were an important potential influence on customer perception to adopt online banking. In essence, empirical studies in service quality and customer satisfaction have considered reliability, tangibility, responsiveness and assurances as to the main determinants of service quality that affect the satisfaction of customers positively (Levey
& Hin 2016; Kaura et al. 2015; Lee & Chung 2009). Moreover, prior researchers in the field of online banking services and their relationship to customer satisfaction, service quality in digital banking were viewed as meeting and exceeding customer expectations, being accessible and reliable (Keisidou et al. 2013; Ladhari et al. 2011; Amin 2016). As well, in digital services studies on functional quality were also considered, described as the characteristics of the system in terms of easiness, simplicity, interaction (Garg 2014; Klaus & Maklan 2013). Mbama and Ezepue (2018) tested the functional and service characteristics of quality in users’ uptake of digital banking in UK banks and its impact on customer experience, they found that service quality affects UK customers in using digital banking experience, which consequently leads to customer satisfaction and loyalty. Also, they called for further insights across countries in digital services in banks. Based on the above discussion, considering the infant stage of Fintech there is limited research on service quality as a concept on Fintech services, hence the following hypothesis is proposed:
H4: Perceived service quality has a positive relationship to confirmation of expectation toward Fintech.
Negative Valance
This study integrates perceived risk into the ECT framework to gain a comprehensive understanding of the satisfaction, constant intention and loyalty of customers with using Fintech.
Perceived risk in information system literature has received limited attention (Ayanso, Herath &
O’Brien 2015). The technology acceptance model has attempted to describe the perceived risk of technology based on the pre-adoption perception of a consumer. However, this study opted for ECT to meet the objective of this study through analyzing the post-adoption of consumers of Fintech. Based on consumer confirmation of threats associated with Fintech. Technology innovation is associated with threats (Schierz et al. 2010). Since Fintech is an emerging phenomenon, Fintech customers are exposed to risks constantly that may arise, the risk of possible insufficient information or resources as well as the failure of operation can cause a major problem for the customer experience of using Fintech. Perceived risk is more likely to significantly influence users’ readiness to transact in Fintech.
This study considers Cunningham's (1967) framework of perceived risk to elaborate on the individual risk factors resulting from the user’s experience of Fintech. Cunningham (1967) classified perceived risk into six dimensions: performance, financial consideration, opportunity/time, safety, social factor, and psychological factors. Accordingly, when integrating Cunningham's (1967) model into the Fintech context, this study developed the following four types of risks: operational risk, security risk, financial risk and legal risk. Previous studies have linked risks to the customer’s intention to use Fintech, but the relationship of risks to the customer’s experience has not been established as far as our knowledge. Hence this study investigates explanatory risks developed by Fintech literature.