International Journal of Financial Innovation in Banking (5 papers in press)

Regular Issues

• Financial stress and buy now pay later adoption in the UAE: an AI-based risk assessment  
  by Muhammad Ali Jibran Qamar, Juan Dempere 
  Abstract: In this research, we study overspending risk among youth in the UAE by researching factors that contribute to those who engage with buy now, pay later (BNPL) services. Data was collected from 200 respondents. The analysis was performed to assess demographic, financial, and behavioural variables associated with at-risk spending behaviour. A logistic regression was used, which highlights moderate predictive capability (accuracy = 54.5%, AUC = 0.62), with behavioural variables, particularly impulsivity and financial stress, being more salient predictors than demographic variables. To increase the reliability of the results, random forest, XGBoost, and neural networks techniques were employed, where XGBoost showed strong performance [accuracy = 65.0%, area under curve (AUC) = 0.694], highlighting the utility of nonlinear methods in identifying complex behavioural patterns. These findings contribute to the literature on consumer finance in emerging markets, highlighting the behavioural dimensions of BNPL overspending and offering actionable insights for policymakers and financial institutions.
  Keywords: buy now pay later; BNPL; financial stress; impulsivity; UAE; youth.
  DOI: 10.1504/IJFIB.2026.10078389
   
  
• Examining the impact of Fintech adoption on MSME performance: evidence on the mediating role of digital capabilities and digital financial management  
  by Pradeep Bhatt, Vandana Tiwari, Arti Sharma 
  Abstract: This study examines the impact of Fintech adoption on MSME performance and investigates the mediating roles of digital capabilities and digital financial management in a geographically constrained ecosystem. Drawing on the unified theory of acceptance and use of technology (UTAUT) and the technology-organisation-environment (TOE) framework, the research develops a multi-level adoption-capability-performance model. Primary data were collected from 500 MSMEs in Uttarakhand, India, and analysed using partial least squares structural equation modelling (PLS-SEM). The findings indicate that perceived cost reduction, digital literacy, and regulatory compliance significantly influence Fintech adoption. Fintech adoption positively affects digital capabilities, digital financial management, and firm performance. Mediation analysis reveals that digital capabilities and digital financial management partially mediate the relationship between Fintech adoption and MSME performance, indicating that performance gains are realised through capability enhancement rather than adoption alone. The model explains 43.3% of the variance in Fintech adoption and 35.8% in firm performance. The study contributes to Fintech adoption literature by integrating UTAUT and TOE within a capability-based mediation framework and provides region-specific evidence from a hill-state MSME ecosystem. Practically, the findings suggest that policymakers should prioritise digital literacy programs and regulatory clarity, while Fintech providers should design integrated financial management solutions tailored to resource-constrained MSMEs.
  Keywords: financial technology; Fintech; micro small and medium enterprises; MSME; digital literacy; Uttarakhand; Fintech services; digital challenges.
  DOI: 10.1504/IJFIB.2026.10078415
   
  
• Is the green banking system focused more on capital expenditures than on expenses?  
  by Nethravathi Kalbugi, Munnu Prasad Venkatesh 
  Abstract: The rise of environmental consciousness has led to the emergence of green banking systems worldwide. These systems aim to promote sustainability by encouraging environmentally responsible practices within the financial sector. One crucial aspect of green banking is the allocation of funds towards green initiatives. This research paper investigates whether green banking systems prioritise capital expenditures over operational expenses. By analysing existing literature, case studies, and financial data, this paper aims to provide insights into the allocation patterns of green banking institutions and their impact on sustainability goals.
  Keywords: green banking system; capital expenditure; operational expenses; allocation of funds towards green banking.
  DOI: 10.1504/IJFIB.2026.10078515
   
  
• Digital financial inclusion under capitalism, socialism, communism, mixed economy and democracy: which one works better?  
  by Peterson K. Ozili 
  Abstract: Recent technological developments have enabled the use of digital technologies to access financial services which is beneficial for digital financial inclusion. However, little is known about how differing economic systems affect the level of digital financial inclusion. This study presents a concise discussion into how differing economic systems affect the level of digital financial inclusion. It also offers a perspective into which economic system works better for digital financial inclusion. This study argues that each of the dominant economic systems have attributes or characteristics that accelerate or hinder digital financial inclusion. An illustrative example using real-world data shows that some digital financial inclusion indicators perform better in a socialist, capitalist or mixed market economy country while other digital financial inclusion indicators perform poorly in a socialist, capitalist or mixed market economy country. The implication is that the level of digital financial inclusion varies under different economic systems. The insights offered in this article are useful to academics and policymakers seeking to understand why the level of digital financial inclusion differs across countries. This study considers the differences in economic systems to be a possible explanation which policymakers should pay attention to.
  Keywords: digital financial inclusion; fintech; capitalism; socialism; communism; mixed economy; democracy; financial inclusion.
  DOI: 10.1504/IJFIB.2026.10079450
   
  
• Unveiling key determinants of mobile banking intention among rural customers: a study from perspective of Haryana, India  
  by Nitika Gaur, Kavita A. Jain, Garima Kataria, Monika Monika 
  Abstract: Mobile banking has the potential to advance financial inclusion by ensuring accessible, convenient, and cost-effective banking services in rural areas. Nevertheless, in Haryana, rural adoption remains limited, despite enhanced digital infrastructure and supportive government initiatives. This research explores the main factors affecting rural consumers intention to adopt mobile banking by extending the theory of planned behaviour (TPB) with additional elements perceived benefits, cognitive resistance, and perceived risk to reflect the distinctive socio-economic and technological circumstances of rural populations. Data were collected from 450 rural banking customers through convenience sampling, and the data were analysed using PLS-SEM. The results show that attitude, subjective norms, perceived behavioural control, perceived benefits significantly affect rural consumers intention to use mobile banking, whereas perceived risk has a notable negative impact. Cognitive resistance exhibits a negative but statistically insignificant relationship with intension to use mobile banking. The research underscores the significance of fostering positive attitudes, raising awareness, and addressing perceived risks to enhance mobile banking adoption in rural emerging markets.
  Keywords: electronic banking; e-banking; digital banking; mobile banking; mobile banking adoption; intention to use; India.
  DOI: 10.1504/IJFIB.2026.10079743