FinTech Adoption and Financial Resilience Among Gig Economy Workers: An Empirical Investigation

Abstract

The rise of the gig economy has resulted in an increase in work flexibility but has also led to income volatility, irregular income, and a lack of access to financial services, thus creating a critical financial inclusion gap. Financial technology, or FinTech, has been seen as a potential solution that can help solve these problems, but there is a scarcity of empirical evidence that establishes a link between gig work participation, FinTech adoption, and financial resilience. This study seeks to bridge this critical gap by exploring the factors that influence FinTech adoption, its role in improving financial resilience, and its impact on 300 gig workers in cities like Bangalore, Mumbai, Delhi, Hyderabad, Pune, as well as semi-urban cities like Mysore, Hubli-Dharwad, Vijayawada, Coimbatore, Nashik, across India. This study has found that income volatility and digital literacy are critical factors that influence FinTech adoption, while trust and security are partial mediators. Moreover, gig workers using FinTech services are more financially resilient, as it has a positive impact on income management, savings, and financial emergency preparedness. This study provides novel empirical evidence on the relationship between gig work participation, FinTech adoption, and financial resilience, thus offering insights that can help policymakers, platform developers, and financial institutions in creating a more inclusive, resilient, and technology-driven financial ecosystem.