The rise of financial technology (Fintech) has become a game changer in expanding access to financial services in Indonesia, especially for the large unbanked population living in rural areas. By leveraging digital platforms, Fintech bridges the gap between formal financial institutions and vulnerable communities that were previously unreached.
This study investigates the role of user innovativeness in driving Fintech adoption. Data were collected through an online survey of 485 Fintech users between December 2020 and April 2021 and analyzed using SmartPLS 3.0 with path modeling techniques.
The findings highlight that user innovativeness significantly influences Fintech adoption, both directly and indirectly. Among all factors tested, user attitude emerged as the most crucial determinant, while financial literacy was found to be the least important challenging the common assumption that literacy is a key barrier. This suggests that Fintech can effectively serve individuals with lower financial literacy, making it a powerful tool for promoting financial inclusion.
To accelerate inclusivity, policymakers and regulators must focus on strengthening both ICT infrastructure (such as expanding mobile broadband penetration) and soft infrastructure by:
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Encouraging Fintech startups,
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Supporting innovation through regulatory sandboxes, and
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Driving traditional financial institutions to adopt Fintech solutions.
Together, these steps will help unlock the full potential of Fintech in reaching Indonesia’s unbanked communities and fostering sustainable financial empowerment.
👉 Read the full article here to explore the detailed findings and their implications for policymakers and Fintech business provider.