research-article

Exploring Risk and Benefit Factors Affecting User Adoption Intention of Fintech in Indonesia

Authors:

Fannisa Rahma Haqqi,

Amalia SuziantiAuthors Info & Claims

APCORISE '20: Proceedings of the 3rd Asia Pacific Conference on Research in Industrial and Systems Engineering

Pages 13 - 18

https://doi.org/10.1145/3400934.3400939

Published: 25 August 2020 Publication History

Abstract

The presence of Fintech as an innovative and disruptive financial service can improve the efficiency and scope of financial services through the application of technology. Fintech is considered to have various benefits. However, based on survey conducted by DailySocial and Otoritas Jasa Keuangan finds that the Fintech adoption rate in Indonesia is still relatively low at around 58.1%, this is in line with a penetration level of Fintech in Asia which Indonesia usage level still in 5% compared to China, Hong Kong, and India. In determining Fintech adoption, users tend to do rational calculations by comparing the perceived benefits and risks and will decide to adopt them when the perceived benefits are greater than the risks received. According to some studies, trust can be mediated to reduce some level of risk, thus this study will also include trust variables in the risk-benefit framework to determine user adoption intention on Fintech services in Indonesia. Based on data collected from 100 Fintech users, this study initially investigated whether perceived benefits and risks significantly impacted Fintech adoption intention. Partial Least Square (PLS-SEM) method is used to estimate the relationship between constructs. As a resulting trust, economic benefit and convenience are proven to significantly influence the user to adopt Fintech. While privacy awareness, financial risk, and legal risk are significantly affected by user trust. The hypothesis testing indicates that security risk has the biggest negative effect and convenience has the biggest positive effect on Fintech adoption intention.

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Cited By

Truong N(2024)A Literature Review on the Development of Fintech in Southeast AsiaExploring Global FinTech Advancement and Applications10.4018/979-8-3693-1561-3.ch003(42-108)Online publication date: 7-Feb-2024
https://doi.org/10.4018/979-8-3693-1561-3.ch003
Bakhshi PAgrawal RMendon SFrank DSpulbar CBirau RFilip R(2024)BARRIERS IN ADOPTION OF FINTECH BY STREET VENDORS AND HAWKERS IN INDIA USING INTERPRETIVE STRUCTURAL MODELINGBusiness: Theory and Practice10.3846/btp.2024.1920825:1(231-240)Online publication date: 4-Jan-2024
https://doi.org/10.3846/btp.2024.19208
Christian MNan GGularso KDewi YSunarno Wibowo S(2024)Impact of AI Anxiety on Educators Attitudes Towards AI Integration2024 3rd International Conference on Creative Communication and Innovative Technology (ICCIT)10.1109/ICCIT62134.2024.10701130(1-7)Online publication date: 7-Aug-2024
https://doi.org/10.1109/ICCIT62134.2024.10701130
Show More Cited By

Index Terms

Exploring Risk and Benefit Factors Affecting User Adoption Intention of Fintech in Indonesia
1. Applied computing
  1. Electronic commerce
    1. Digital cash
  2. Law, social and behavioral sciences
    1. Psychology
2. Mathematics of computing
  1. Probability and statistics
    1. Multivariate statistics

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APCORISE '20: Proceedings of the 3rd Asia Pacific Conference on Research in Industrial and Systems Engineering

June 2020

410 pages

ISBN:9781450376006

DOI:10.1145/3400934

Copyright © 2020 ACM.

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Publication History

Published: 25 August 2020

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APCORISE 2020

APCORISE 2020: 3rd Asia Pacific Conference on Research in Industrial and Systems Engineering 2020

June 16 - 17, 2020

Depok, Indonesia

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APCORISE '20 Paper Acceptance Rate 68 of 110 submissions, 62%;

Overall Acceptance Rate 68 of 110 submissions, 62%

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Cited By

Truong N(2024)A Literature Review on the Development of Fintech in Southeast AsiaExploring Global FinTech Advancement and Applications10.4018/979-8-3693-1561-3.ch003(42-108)Online publication date: 7-Feb-2024
https://doi.org/10.4018/979-8-3693-1561-3.ch003
Bakhshi PAgrawal RMendon SFrank DSpulbar CBirau RFilip R(2024)BARRIERS IN ADOPTION OF FINTECH BY STREET VENDORS AND HAWKERS IN INDIA USING INTERPRETIVE STRUCTURAL MODELINGBusiness: Theory and Practice10.3846/btp.2024.1920825:1(231-240)Online publication date: 4-Jan-2024
https://doi.org/10.3846/btp.2024.19208
Christian MNan GGularso KDewi YSunarno Wibowo S(2024)Impact of AI Anxiety on Educators Attitudes Towards AI Integration2024 3rd International Conference on Creative Communication and Innovative Technology (ICCIT)10.1109/ICCIT62134.2024.10701130(1-7)Online publication date: 7-Aug-2024
https://doi.org/10.1109/ICCIT62134.2024.10701130
Siva Priya CVenkateswara Rao P(2024)Adoption of financial technology services for financial inclusionMATEC Web of Conferences10.1051/matecconf/202439201048392(01048)Online publication date: 18-Mar-2024
https://doi.org/10.1051/matecconf/202439201048
Durak İÇi̇se SYazıcı S(2024)Developing a financial technology (FinTech) adoption scale: A validity and reliability studyResearch in International Business and Finance10.1016/j.ribaf.2024.10234470(102344)Online publication date: Jun-2024
https://doi.org/10.1016/j.ribaf.2024.102344
Sharma AMohan AJohri AAsif M(2024)Determinants of fintech adoption in agrarian economy: Study of UTAUT extension model in reference to developing economiesJournal of Open Innovation: Technology, Market, and Complexity10.1016/j.joitmc.2024.10027310:2(100273)Online publication date: Jun-2024
https://doi.org/10.1016/j.joitmc.2024.100273
Hussain AShahin Mia MAhmed FPrommee P(2023)A moderated mediation analysis on fintech adoption, social influence, competitiveness and financial performance of commercial banks in PakistanBanks and Bank Systems10.21511/bbs.18(4).2023.1918:4(226-240)Online publication date: 30-Nov-2023
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Setiawan BPhan TMedina JWieriks MNathan RFekete-Farkas M(2023)Quest for financial inclusion via digital financial services (Fintech) during COVID-19 pandemic: case study of women in IndonesiaJournal of Financial Services Marketing10.1057/s41264-023-00217-929:2(459-473)Online publication date: 13-Mar-2023
https://doi.org/10.1057/s41264-023-00217-9
Karim RSobhani FRabiul MLepee NKabir MChowdhury M(2022)Linking Fintech Payment Services and Customer Loyalty Intention in the Hospitality Industry: The Mediating Role of Customer Experience and AttitudeSustainability10.3390/su14241648114:24(16481)Online publication date: 9-Dec-2022
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Kaya FAydin FSchepman ARodway PYetişensoy ODemir Kaya M(2022)The Roles of Personality Traits, AI Anxiety, and Demographic Factors in Attitudes toward Artificial IntelligenceInternational Journal of Human–Computer Interaction10.1080/10447318.2022.215173040:2(497-514)Online publication date: 7-Dec-2022
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