THE ROLE OF INTERNET OF THINGS IN FINTECH ADOPTION WITHIN BANKING SECTOR:THE MODERATING ROLE OF DIGITAL TRANSFORMATION CAPABILITY

Abstract

The increasing tendency toward digital transformation on the part of banks has been driving up the stakes for fintech adoption as a strategic counterpoint. Banks are facilitated with (IOT ) internet of things capabilities to interact even more closer with customer behavior and decisioning process, not confined only for operational risk. Research objectives This study will seek to understand the influence of Internet of things (IOT) on diffusion of fintech in banking and further to explore the moderating impact of Digital Transformation Capability (DTC) on the relationship between Internet of things (IOT) and the adoption of fintech. Based upon a quantitative deductive approach, we collect data from a sample of 300 out of 616 employees of commercial and Islamic banks in Jordan through a structured questionnaire. Relations were tested using PLS-SEM. Results The results of the study show that IoT has a general positive impact on fintech adoption when it comes to customer-centric services, operation-effective, and risk management. Moderation effect of Digital Transformation Capability was identified in the relationship, as it facilitated system integration and speeding up adoption and promoting datadriven decisions. These associations were statistically significant highlighting technology readiness in leveraging BDA for workforce fintech adoption in Saudi Arabia. The cross border comparative research and future research, such as analyzing blockchain-empowered analytics in fintech ecosystems are the methodological restrictions and future research phases.