I-DIGITAL MO NA'YAN: THE IMPACT OF FINTECH ADOPTION AS OBSERVED BY A SELECTED GROUP OF LOCAL RETAIL, HOME-BASED, AND ONLINE BUSINESS OWNERS IN CABIAO AND GAPAN, NUEVA ECIJA

Abstract

Financial technology, commonly known as FinTech, has significantly transformed the financial industry. FinTech innovation has rapidly expanded in recent years, particularly in the Philippines, resulting in wide-ranging effects on economic activities. This study aimed to investigate how FinTech innovation influences the adoption of financial technology services among small local business owners in Cabiao and Gapan, Nueva Ecija. The study employed a descriptive research design using qualitative methods to examine the effects of FinTech on small business owners in selected areas of Cabiao and Gapan. Non-probability purposive sampling was used to select twenty-three participants based on predetermined criteria. Data were gathered through semi-structured interviews, note-taking, and voice recordings to obtain in-depth insights into FinTech adoption among business owners, emphasizing contextual understanding and interpretation. The findings revealed that most business owners were between 41 and 50 years old, with retail businesses comprising the majority of the business category. The participants had been operating their businesses for one to five years, with FinTech adoption beginning one to three years prior, coinciding with the emergence of the pandemic. GCash was identified as the leading FinTech application used by the respondents. Practical uses such as digital remittances, electronic loading, and electronic billing demonstrated the participants’ willingness to adopt these technologies. The results reflected both positive and negative impacts of FinTech adoption. Positive impacts included faster transactions, increased efficiency, convenience, expanded market reach, time savings, and additional income. Conversely, negative aspects involved transaction and system issues, concerns related to safety and data privacy, and challenges with internet connectivity, which affected the usage of FinTech applications. The results demonstrated that local business owners have increasingly adopted FinTech mobile applications to keep pace with the growing digital economy. The practical benefits offered by FinTech applications encouraged their adoption, despite the presence of both positive and negative impacts associated with their use.