Personalization in Fintech: Dual Mediation Effects of Trust and Surveillance on Fintech User Retention

Abstract

Personalization has become a cornerstone of financial technology (fintech) services, promising enhanced user experiences and long-term loyalty. However, personalization carries a paradox: while it can foster trust, it may also heighten perceptions of surveillance, thereby undermining retention. This study examines the dual mediation effects of digital trust and perceived surveillance in the relationship between perceived fintech personalization and user retention. Drawing on privacy calculus theory and trust–surveillance paradox perspectives, we develop and empirically test a structural model using survey data from fintech users. Results reveal that personalization has a positive influence on user retention through digital trust, but simultaneously triggers perceived surveillance, which weakens retention intentions. Furthermore, privacy concern moderates the surveillance–retention link, amplifying the negative pathway for privacy-sensitive users. By unpacking these competing mechanisms, the study advances understanding of the personalization paradox in fintech and provides actionable insights for balancing personalization with ethical data practices.