MODELLING THE APPLICATION OF FINTECH IN INDONESIA

Abstract

In recent years, FinTech services have emerged in many countries around the world including
Indonesia. FinTech service combines financial services and mobile technology to serve the
consumer’s needs for more effective and efficient financial services. Its market size is also
growing which indicates that the service is widely accepted. However, the study on FinTech is
still lacking, especially relating to the consumers’ behavior in adopting the service. Therefore,
the aim of this research is to study the factors that influence consumers in adopting FinTech
services by surveying Indonesian consumers. From 250 respondents, there were 204 forms that
were filled and returned. By conducting the Structural Equation Modeling (SEM) using Lisrel
8.80 software, all of the consumer’s inputs are computed. From this computation, there are
three results that can be drawn. First, it revealed that the element of trust generally influences
not only the user’s satisfaction but also the person’s continuance intention. However, the
person’s satisfaction does not necessarily influence a person’s continuance use intention.
Second, all factors of convenience, performance, cost advantages, referent network size and
perceived complementary, if combined together, have an effect on the user’s satisfaction.
Third, other factors such as authentication, non-repudiation, confidentiality, privacy protection,
and data integrity are also deemed as important elements to consider. Therefore, any Fintech
company should take into consideration these factors to win their customers in this market