A model of trust in Fintech and trust in Insurtech: How Artificial Intelligence and the context influence it

Finance and insurance are being transformed by Artificial Intelligence (AI). Nevertheless, the consumer is not passive in this process and there is some inhibition to trust. This research modelled trust in Fintech and trust in Insurtech. The two models were then compared to evaluate if trust in both is similar. Multigroup Structural Equation Modelling is used to evaluate if the model is equally valid for Fintech and Insurtech. The model presented here shows that trust in both Fintech and Insurtech are formed by (1) Individuals psychological disposition to trust, (2) Sociological factors influencing trust, (3) Trust in either the financial organization or the insurer and (4) Trust in AI and related technologies. The results of the multigroup analysis show that the model is equally valid for Fintech and Insurtech. This is particularly useful as these services are often offered by the same organization, or even the same mobile application.