FinTech and Financial Inclusion in SMEs of Afghanistan: Exploring the Moderating influences of Perceived Regulatory Support and Continued Usage Intention

Abstract

This study focuses into the factors that influence FinTech adoption and its impact on financial inclusion (FI) in Afghanistan's small and medium-sized enterprises (SMEs). Employing the Technology Acceptance Model (TAM) and related trust-based frameworks, the study investigates the impact of perceived ease of use (PEOU), trust (TRS), service quality (SEQ), and perceived security (PES) on FinTech adoption. Additionally, it explores how FinTech usage improves financial inclusion (FI) and how this relationship is influenced by continuing usage intention (CUI) and perceived regulatory support (PRS). The data collected from SMEs participants was examined using structural equation modeling (SEM) in SmartPLS. The results reveal that PEOU (β = 0.212, t = 4.817, p <.001), TRS (β = 0.199, t = 3.303, p =.001), SEQ (β = 0.248, t = 4.274, p <.001), and PES (β = 0.149, t = 2.359, p =.018) have significant effects on FinTech usage. FinTech usage significantly predicts FI (β = 0.608, t = 13.226, p <.001).  CUI (β = 0.125, t = 3.070, p =.002) did not moderate the relationship and while PRS (β = 0.106, t = 2.610, p =.009) positively moderated the association between FinTech usage and financial inclusion. These findings indicate that enhancing usability, trust, quality, and security perceptions can greatly increase FinTech adoption, improving access to financial services. Further, maintaining continuing interaction and supporting regulatory settings increases this impact. The study complements to the expanding literature on FinTech in emerging economies and has practical implications for policymakers, FinTech developers, and SMEs in Afghanistan.

Key words : FinTech adoption, financial inclusion, SMEs, continued usage intention, regulatory support