Fintech Innovation Adoption and Customer Loyalty in the Islamic Banking Sector of KP: The Moderating Role of Digital Financial Literacy

Abstract

This research has been designed to investigate the moderating role of digital financial literacy in the relationship of Fintech innovation adoption and customer loyalty. The study is based in the Islamic banking industry of KP and data analysis has been done via SPSS. Results of the research confirm that fintech innovation adoption has a significant positive influence on customer loyalty. Finding of the research also reveals that digital financial literacy significantly moderates this relationship. Research suggests that along with investing in cutting-edge technologies, banks should also prioritize digital financial literacy programs. This study extends traditional behavioral models by identifying a critical cognitive boundary condition for digital relationship management.