Users’ acceptance of financial technology in an emerging market (An empirical study in Indonesia)

This study seeks to investigate the factors that affect consumers’ use of financial technology in fulfilling their financial needs in the emerging market. The financial technology consists of payment gateway, peer to peer lending, online financial product offering, and financial literacy. The paper analyzes five major customers’ aspects, i.e., demography, psychography, banking literacy, technology awareness, and trust of regulatory that consist of 15 variables of customer responses. Those 15 variables explain individuals’ use of financial technology. The binary logit regression technique tests the research models. In the model, consumers’ acceptance (whether one will use financial technology) is operationalized by a dummy variable that equals one if the consumer accepts or is aware of the technology and zero otherwise. The total sample is 298 respondents. The respondents are mostly millennial generation (56 percent), university graduates (76 percent), individuals with the income level of B-Class and A-Class (67 percent), 95 percent of the respondents have bank accounts, and almost 99 percent of the respondents have social media accounts. The empirical results show that millennial-age customers with the income levels of B-Class and A-Class have the highest financial technology acceptance. Gender also influences the acceptance level of financial technology.