Fintech adoption among Generation-Z in Malaysia

Chan, Jian You and Chin, Chen Hun and Koo, How Shen (2024) Fintech adoption among Generation-Z in Malaysia. Final Year Project, UTAR.

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Abstract

Fintech is defined as a new financial industry that includes technology application to improve financial activities (Schueffel, 2016). Besides that, Fintech is also known as any innovations that improve financial service processes by proposing technology solutions into distinct business situations (Leong & Sung, 2018). With the advancement of technology, technology integration is prevalent in the financial industry (Jourdan et al., 2023). There are various innovations emerge in the financial industry that have incorporated technology such as mobile payment, peer-to-peer lending, robo-advisory, insurance technology and crypto-assets have made financial services more accessible and convenient to consumers (Feyen et al., 2021). One of the advantages and benefits of fintech is financial inclusion where everybody is given chances to access to financial services such as banking, payment and lending services without concerns on travelling (Venet, 2019). Fintech also provides cost-effective financial solutions compared to traditional financial services at the standpoints of owner as well as customer. From the standpoint of owner, fintech helps to eliminate cost spent on physical financial institution branches while leveraging digital platforms to reduce overhead costs (Nik Herda & Tye, 2023). In terms of risk management and compliance, fintech incorporates artificial intelligence (AI) to improve risk management and strengthen security measures so that the likelihood of financial fraud can be significantly reduced at the same time increasing consumer confidence on the financial system (Morshadul Hasan & Ariful Hoque, 2023). In recent years, Malaysian Government has shown its support on fintech growth and development in which Malaysian Government takes initiatives to promote innovation, increase financial inclusion through fintech. Bank Negara Malaysia and The Securities Commision Malaysia (SC) have launched Regulatory Sandbox on October 2016 to offer regulatory framework for enabling innovation in Malaysia's financial sector (Bank Negara Malaysia, 2024). Regulatory environment enables fintech startups to experiment their products and services under authorized supervision before official launches (Bank Negara Malaysia, 2024). Furthermore, Fintech Lab is also formed by The Malaysian Global Innovation and Creativity 2 Centre (MaGIC) to encourage more fintech startups by providing resources and supports such as mentorship, access to funding as well as networking connections (Malaysian Global Innovation and Creativity Centre, 2021).

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