FinTech: A Convenience Revolution or A Privacy Compromise

Abstract

The study investigates the dual impact of Financial Technology (FinTech) on user experience - examining whether the convenience it offers comes at the cost of compromising user privacy. With the rise of mobile-based financial solutions in India, FinTech platforms have made every day financial transactions fast, paperless, and accessible. However, these advancements also pose significant concerns regarding data privacy, unauthorized access, and digital security. Using a structured questionnaire, primary data was collected from 175 digitally active users, most of who were highly educated and employed full-time. The research applied quantitative methods including t-tests, ANOVA, correlation, and chi-square analysis to examine how demographic factors, digital literacy, and trust influence user perceptions. The findings reveal that 91% of users find FinTech highly convenient, with services like UPI, mobile banking, and digital wallets integrated into their daily routines. Features such as 24/7 access, faster transactions, and paperless processes were particularly appreciated. However, privacy concerns were widespread—with over 70% of users expressing fears about identity theft, app permissions, phishing, and unauthorized data sharing. Notably, 45.1% had experienced or suspected a data breach. One of the key findings was the compromise that users are willing to make: 73.8% feel that FinTech convenience trumps risk to privacy but most are still wary. Younger users showed more digital literacy, while knowledge of data protection legislation was polarized. The majority of respondents (64%) thought that privacy protection is collective responsibility between governments, FinTech companies, and users. The study finds that while FinTech has revolutionized financial convenience, it requires stronger privacy protection, regulatory certainty, and consumer education. It recommends plain language, privacy-oriented app design, and digital literacy initiatives to enable users and create a secure, trusted FinTech ecosystem.