INCREASING THE ADOPTION OF FINTECH LENDING TO ACCELERATE FINANCIAL INCLUSION IN INDONESIA: AN EXTENSION OF TECHNOLOGY ACCEPTANCE MODEL

• Main Author: Arninda Dianty, Maretta
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/62905
• Institution: Institut Teknologi Bandung

Fintech lending has grown significantly in Indonesia. With a large population and a high percentage of internet and smartphone users, Indonesia has significant potential for fintech lending development. However, previous studies found that approximately 50.9% of Indonesia's population remain underbanked, and Indonesia’s percentage of loans disbursement to GDP is relatively low compared to other Asian Countries (Google et al., 2019; PwC Indonesia, 2019). It shows that there is still untapped financing capacity; hence, the fintech lending industry still has an excellent opportunity to develop in Indonesia. The government also highly supports this industry because it contributes to improve financial inclusion. This research aims to investigate factors that can influence Indonesian people in adopting fintech lending using a modified Technology Acceptance Model (TAM) to accelerate financial inclusion. This study adopted the model developed by Hu et al. (2019), which combines trust in fintech lending platforms with TAM. Along with Davis’s (1989) perceived usefulness and perceived ease of use, the variables used in this study are perceived religiosity, the amount of information, perceived risk, brand image, government or regulatory support, user innovativeness, and trust as a mediating variable. The survey was conducted using a questionnaire and gathered 200 responses processed quantitatively using PLS-SEM. This research found that perceived usefulness, trust, brand image, perceived risk, and government or regulator support influence user attitude, while user attitude has positively influenced users’ intention to use fintech lending platforms. Trust is found to have an essential role in fintech lending adoption. Trust acts as a mediator for the relationship between perceived risk, government or regulator support, and brand image with user attitude. The findings should help fintech lenders better understand what drives user adoption. This study also makes recommendations for future research, fintech lenders, governments, and regulators to help Indonesians become more financially inclusive.