Understanding financial well-being through fintech adoption and technology readiness: a South African perspective

Purpose This article examines the impact of fintech adoption and technology readiness on the financial well-being of financial sector consumers in South Africa, while assessing the moderating role of perceived risk in this relationship. Design/methodology/approach Primary data is collected from 486 financial sector consumers in South Africa. Primarily, Principal Component Analysis, reliability statistics, Confirmatory Factor Analysis and correlation analysis were exercised for instrument and data assessment. Furthermore, regression analysis and moderation were employed to achieve the study's objectives. Findings The findings reveal that financial well-being significantly improves with the adoption of fintech and readiness to embrace emerging digital technologies. However, perceived risk moderates this relationship, such that higher perceived risk diminishes the positive effect on financial well-being. Research limitations/implications The findings imply that greater adaptability to fintech digital-based technologies enhances the financial well-being of users. While practitioners should implement awareness initiatives to mitigate perceived risk, these concerns should also be recognized as legitimate responses by users to emerging technologies. Addressing such concerns will assist in refining product offerings and improving technology adoption in a more balanced and sustainable manner. Originality/value This study is the pioneer to investigate the financial well-being of consumers in South Africa by jointly considering fintech adoption, technology readiness and consumers risk profiles, thereby filling an important gap in the literature.