The influence of familiarity and personal innovativeness on the acceptance of fintech lending services: A perspective from Indonesian borrowers

Abstract

Financial Technology (FinTech) Lending in Indonesia is an innovative solution for financial services in Indonesia because it has convenience and benefits for Indonesians who need loans, fund management, and other financial transaction activities. FinTech Lending is growing fast because it offers reasonable interest rates and access to conventional financial institutions. The growth of FinTech Lending is expected to support financial inclusion planned by the Indonesian government. In 2020, 126 FinTech Lending Companies were operating illegally by exploiting communities experiencing economic difficulties. This study aims to determine the factors that influence the adoption of FinTech services in Indonesia, considering obstacles and occasions. Factors related to obstacles are Trust and Security in Online Lending platforms, while factors related to occasions are Personal Innovativeness, Interest Rate, and Familiarity. This study used a sampling technique, namely purposive sampling, and involved 85 respondents from Indonesian Borrowers with the age majority between 20 to 25 years old. Processes data obtained from survey results using Partial Least Square-Structural Equation Modeling (PLS-SEM). The results are that Familiarity and Personal Innovativeness affect the acceptance of FinTech Lending companies in Indonesia. In addition, it produces guidance for the improvement of FinTech Lending Companies in Indonesia, which be used to develop and support financial inclusion in Indonesia.

Adoption of financial technology services for financial inclusion

“…Personal innovativeness matches with the outcome of Wirani et al (2022).Convenience is closely related with the output by Zhang & Kim (2020). Finally, fintech adoption has shown a positive effect on financial inclusion which is same as the research results from Goswami et al (2022)…”

“…PI shown a significant influence on acceptance of fintech Tun-Pin et al (2019). With respect to financial technology services, research study by Wirani et al (2022) among Indonesian borrowers proved a positive influce on PI acceptance on fintech. H5: Personal innovativeness has a positive effect on adoption of fintech services.…”

Sectoral Comparison of Sustainable Digital Financial Inclusion of Women Workforce with the Mediation of Digital Banking Adoption Intention: An Empirical Analysis

“…PI is also found to be significant predictor of DBAI for both set of respondents, accepting H8a finding its support from studies of Yuan and Ma (2022); Wirani et al (2022). However, there is significant difference in PI among female bank employees (β = .720, p = .000) and female IT employees, (β = .804, p = .000) being its loading much higher in case female IT employees.…”

An Empirical Investigation of Factors Affecting Personal Information’s Disclosure on Mobile Payment (E-Wallet) Platforms

“…Familiarity with the application will determine the level at which the e-wallet application is widely adopted and recognized. A study by Wirani [34] explained that customers' propensity to use Fintech services in Indonesia is influenced by the reliability of service providers with a precise and reputable reputation. It was also found that familiarity has a negative effect related to user privacy concerns [9].…”