Financial inclusion of the informal sector through FinTech: what perspective does the Diffusion of Innovation offer?

Abstract

This study explores the determinants of FinTech services adoption among informal workers using the Diffusion of Innovation theory as an analytical framework. The objective is to understand how the perceived characteristics of innovation – relative advantage, compatibility, complexity, trialability, and observability – influence the intention to adopt these innovative financial services. A sample of 367 unbanked individuals working in the informal sector was studied to assess their perceptions and intention to adopt FinTech services. The results show that relative advantage, compatibility, perceived complexity, and observability play a significant role in the intention to adopt, while trialability does not have a significant impact. The conclusions of this study suggest recommendations to promote financial inclusion through FinTech, including awareness campaigns, simplifying the use of services, improving digital literacy, and specific educational initiatives. These efforts can facilitate the economic integration of informal workers into the formal financial system, thereby contributing to broader and more equitable financial inclusion.