Factors Influencing the Consumer’s Decision Using Financial Technology: Case Study in Jakarta

Renny Risqiani; Ari Mulianta Ginting

doi:10.22212/jekp.v13i1.1980

Factors Influencing the Consumer’s Decision Using Financial Technology: Case Study in Jakarta

Renny Risqiani, Ari Mulianta Ginting

10.22212/jekp.v13i1.1980

| Abstract views: 0 |

Abstract

Economic evolution started with the first wave of the industrial revolution. Economic evolution brought about changes in the economy. One of these effects is the advancement of technology, which has increased the use of Financial Technology (Fintech) in Indonesia. Fintech usage has risen in Indonesia, particularly in Jakarta. The study’s goal is to look at the elements that influence people’s decision to keep using fintech services. The study used non-probability sampling methods to obtain data from fintech users in Jakarta aged 17 to 35 years old over the research period of March to May 2020. The data was analyzed by using Structural Equation Model (SEM) with the AMOS software program. This study found that competitive pressures in technology services and the ease of digital technology offer consumers a wide range of options. Customers easily switch to other technology services at a reasonably affordable price. The study also found that variable consumer perceptions of benefits and trust variables in fintech services influence consumer attitudes. However, these two variables have no direct effect on the desire to continue using fintech services. Variable risk perception does not affect the attitude and desire of consumers to continue using fintech services. Variable attitudes affect the desire to continue using fintech services. The study results showed that increasing the penetration of fintech and continue consumers to continue to use fintech. It is necessary to improve risk perception to fintech used by consumers.

Keywords: fintech, benefit and risk perception, Structural Equation Model

Abstrak

Perkembangan evolusi perekonomian dimulai dari gelombang pertama hingga masuk revolusi industri membawa perubahan terhadap perekonomian. Salah satu dampak tersebut adalah semakin berkembangnya teknologi. Perkembangan teknologi membawa dampak terhadap peningkatan Financial Technology (Fintech) di Indonesia. Penggunaan fintech di Indonesia mengalami peningkatan khususnya penggunaan fintech di Jakarta. Penelitian ini bertujuan untuk menganalisis faktor-faktor yang memengaruhi niat untuk terus memanfaatkan layanan fintech. Studi ini mengumpulkan data dari pengguna fintech di Jakarta yang berusia 17 hingga 35 tahun menggunakan metode non-probability sampling dengan periode penelitian dari bulan Maret – Mei tahun 2020. Analisis data menggunakan Structural Equation Model (SEM) dengan program software AMOS. Studi ini menemukan bahwa tekanan persaingan dalam layanan teknologi dan kemudahan teknologi digital menawarkan konsumen berbagai pilihan. Konsumen dengan mudah beralih ke layanan teknologi lain dengan harga yang cukup terjangkau. Penelitian ini juga menemukan bahwa variabel persepsi konsumen terhadap manfaat dan variabel kepercayaan terhadap layanan fintech berpengaruh terhadap sikap konsumen. Namun, kedua variabel tersebut tidak berpengaruh langsung terhadap keinginan untuk terus menggunakan layanan fintech. Variabel persepsi risiko tidak memengaruhi sikap dan keinginan konsumen untuk tetap menggunakan layanan fintech. Variabel sikap memengaruhi keinginan untuk terus menggunakan layanan fintech. Hasil studi menunjukkan bahwa penetrasi fintech meningkat dan konsumen terus menggunakan fintech. Persepsi risiko terhadap fintech yang digunakan konsumen perlu ditingkatkan.

Kata kunci: fintech, manfaat dan persepsi risiko, Structural Equation Model

Keywords

fintech; benefit and risk perception; Structural Equation Model; manfaat dan persepsi risiko

Full Text:

PDF

References

Books:

APJII. (2019). BULETIN APJII EDISI 74. APJII. Barberis, Janos, S.C. (2016). The fintech book: The financial technology handbook for investor, entrepreneurs, and visionaries. Willey.

Devezas, T., Leitao, J., & Sarygulov, A. (2017). Industry 4.0 entrepreneurship and structural change in the new digital landscape. Switzerland: Springer Nature.

Moelyono, M. (2010). Menggerakkan ekonomi kreatif. Rajawali Press.

Journal:

Benlian, A. & Hess, T. (2011). Opportunities and risks of software-as-a-service: Findings from a survey of IT executives. Decision Support Systems, 52(1), 232–246. https://doi.org/10.1016/j.dss.2011.07.007.

Deng, X., Huang, Z., & Cheng, X. (2019). FinTech and sustainable development: Evidence from China based on P2P data. Sustainability (Switzerland), 11(22). https://doi.org/10.3390/su11226434.

Dharmawan, B.S., Mulyanto, & Vidyasari, R. (2021). Pengaruh sikap, norma subjektif, dan persepsi risiko terhadap minat bertransaksi menggunakan aplikasi fintech. Account, 8(1), 1437–1445.

Faradynawati, I.A.A. (2018). The impact of perceived risk and trust on consumer intention to use fintech payment in Indonesia. International Review of Financial Consumer, 3, 27–38.

Foroughi, B., Iranmanesh, M., & Hyun, S.S. (2019). Understanding the determinants of mobile banking continuance usage intention. Journal of Enterprise Information Management, 32(6), 1015–1033. https://doi.org/10.1108/JEIM-10-2018-0237.

Gai, K., Qiu, M., & Sun, X. (2018). A survey on FinTech. Journal of Network and Computer Applications, 103, 262–273. https://doi.org/10.1016/j.jnca.2017.10.011.

Gomber, P., Kauffman, R.J., Parker, C., & Weber, B.W. (2018). On the fintech revolution: Interpreting the forces of innovation, disruption, and transformation in financial services. Journal of Management Information Systems, 35(1), 220–265. https://doi.org/10.1080/07421222.2018.1440766.

Grabner-Kräuter, S. & Faullant, R. (2008). Consumer acceptance of internet banking: The influence of internet trust. International Journal of Bank Marketing, 26(7), 483–504. https://doi.org/10.1108/02652320810913855.

Hapsari, R.A., Maroni, M., Satria, I., & Ariyani, N.D. (2019). The existence of regulatory sandbox to encourage the growth of financial technology in Indonesia. FIAT JUSTISIA, 13(3), 271. https://doi.org/10.25041/fiatjustisia.v13no3.1739.

Haseeb, M., Hussain, H.I., Ślusarczyk, B., & Jermsittiparsert, K. (2019). Industry 4.0: A solution towards technology challenges of sustainable business performance. Social Sciences, 8(5), 1-24. https://doi.org/10.3390/socsci8050154.

Hu, Z., Ding, S., Li, S., Chen, L., & Yang, S. (2019). Adoption intention of fintech services for bank users: An empirical examination with an extended technology acceptance model. Symmetry, 11(3), 1-16. https://doi.org/10.3390/sym11030340.

Indiani, N.L.P., Rahyuda, I.K., Kerti Yasa, N.N., & Sukaatmadja, I.P.G. (2015). Perceived risk and trust as major determinants of actual purchase, transcending the influence of intention. ASEAN Marketing Journal, 7(1), 1–13. https://doi.org/10.21002/amj.v7i1.4601.

Ismagilova, E., Slade, E.L., Rana, N.P., & Dwivedi, Y.K. (2020). The effect of electronic word of mouth communications on intention to buy: A meta-analysis. Information Systems Frontiers, 22(5), 1203–1226. https://doi.org/10.1007/s10796-019-09924-y.

Jünger, M. & Mietzner, M. (2020). Banking goes digital: The adoption of FinTech services by German households. Finance Research Letters, 34, 1–13. https://doi.org/10.1016/j.frl.2019.08.008.

Keong, O.C., Leong, T.K., & Bio, C.J. (2020). Perceived risk factors affect intention to use FinTech. Journal of Accounting and Finance in Emerging Economies, 6(2), 453–463.

Kim, J. & Lennon, S.J. (2013). Effects of reputation and website quality on online consumers’ emotion, perceived risk and purchase intention: Based on the stimulus-organism-response model. Journal of Research in Interactive Marketing, 7(1), 33–56. https://doi.org/10.1108/17505931311316734.

Lee, I. & Shin, Y.J. (2018). Fintech: Ecosystem, business models, investment decisions, and challenges. Business Horizons, 61(1), 35–46. https://doi.org/10.1016/j.bushor.2017.09.003.

Leonardo, A. (2016). Analisis pengaruh perceived benefit, free mentality dan perceived sacrifice terhadap attitude toward paying dan implikasinya terhadap willingness to pay (Studi pada pengguna Joox VIP). ULTIMA Management, 8(2), 32–53. https://doi.org/10.31937/manajemen.v8i2.591.

Lim, S.H., Kim, D.J., Hur, Y., & Park, K. (2019). An empirical study of the impacts of perceived security and knowledge on continuous intention to use mobile fintech payment services. International Journal of Human-Computer Interaction, 35(10), 886–898. https://doi.org/10.1080/10447318.2018.1507132.

Lin, J.Y., & Rosenblatt, D. (2012). Shifting patterns of economic growth and rethinking development. Journal of Economic Policy Reform, 15(3), 171–194. https://doi.org/10.1080/17487870.2012.700565.

Marakarkandy, B., Yajnik, N. (2017). Enabling internet banking adoption: An empirical examination with an augmented technology acceptance model (TAM). Journal of Enterprise Information Management, 30, 263–294.

Meyliana, Fernando, E., & Surjandy. (2019). The influence of perceived risk and trust in adoption of FinTech services in Indonesia. Communication & Information Technology) Journal, 13(1), 31–37.

Nadiyah, F., Mawardi, M.K., & Bafadhal, A.S. (2019). Pengaruh perceived benefit dan perceived sacrifice terhadap attitude toward paying dan implikasinya terhadap willingness to pay. Jurnal Administrasi Bisnis , 71(1), 1–10.

Nangin, M.A., Barus, I.R.G., & Wahyoedi, S. (2020). The effects of perceived ease of use, security, and promotion on trust and its implications on fintech adoption. Journal of Consumer Sciences, 5(2), 124–138. https://doi.org/10.29244/jcs.5.2.124-138.

Nelloh, L.A.M, Santoso, A.S., & Slamet, M.W. (2019). Will users keep using mobile payment? It depends on trust and cognitive perspectives. Procedia Computer Science, 161, 1156–1164. https://doi.org/10.1016/j.procs.2019.11.228.

Ozili, P.K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2017.12.003.

Payne, E.M, Peltier, J.W., & Barger, V.A. (2018). Mobile banking and AI-enabled mobile banking: The differential effects of technological and non-technological factors on digital natives’ perceptions and behavior. Journal of Research in Interactive Marketing, 12(3), 328–346. https://doi.org/10.1108/JRIM-07-2018-0087.

Purwanto, S., Hartini, S., & Premananto, G.C. (2019). The development and testing of technology acceptance models for consumers towards the intention to use E-Wallet. EKSIS, 14(1). 55-61. https://doi.org/10.2991/iciir-18.2019.11.

Putritama, A. (2019). The mobile payment fintech continuance usage intention in Indonesia. Jurnal Econonomia, 15 (2), 243–258.

Raja, V.S.T., & Widoatmodjo, S. (2020). Faktor yang menentukan penggunaan financial technology secara berkelanjutan pada pengguna OVO di Jakarta Barat. Jurnal Manajerial dan Kewirausahaan, 2(3), 828–837.

Razzaque, A., Cummings, R.T., Karolak, M., & Hamdan, A. (2020). The propensity to use FinTech: Input from bankers in the Kingdom of Bahrain. Journal of Information and Knowledge Management, 19(1), 1–22. https://doi.org/10.1142/S0219649220400250.

Ryu, H. (2018a). What makes users willing or hesitant to use fintech? The moderating effect of user type. Industrial Management and Data Systems, 118(3), 541–569. https://doi.org/10.1108/IMDS-07-2017-0325.

Ryu, H. (2018b). Understanding benefit and risk framework of fintech adoption: Comparison of early adopters and late adopters. Proceedings of the 51st Hawaii International Conference on System Sciences, 3864–3873. https://doi.org/10.24251/hicss.2018.486.

Sánchez-Torres, J.A., Canada, F.J.A., Sandoval, A.V., & Alzate, J.A.S. (2018). E-banking in Colombia: Factors favouring its acceptance, online trust and government support. International Journal of Bank Marketing, 36(1), 170–183. https://doi.org/10.1108/IJBM-10-2016-0145.

Stasiak-Betlejewska, R., Parv, L., & Gliń, W. (2018). The influence of industry 4.0 on the enterprise competitiveness. Multidisciplinary Aspects of Production Engineering, 1(1), 641–648. https://doi.org/10.2478/mape-2018-0081.

Stefanny, V. & Tiara, B. (2021). Overview perbandingan jumlah user fintech (peer-to-peer-lending) dengan jumlah pengguna internet di Indonesia pada masa pandemi Covid-19. Insan Pembangunan Sistem Informasi Dan Komputer, 9(1), 134–142.

Wahab, R.A. (2016). Analisis perkembangan internet broadband di wilayah perbatasan Provinsi Sulawesi Utara. Jurnal Penelitian Pos Dan Informatika, 6(2), 201–226.

Wang, Z., Guan, Z., Hou, F., Li, B., & Zhou, W. (2019). What determines customers’ continuance intention of FinTech? Evidence from YuEbao. Industrial Management and Data Systems, 119(8), 1625–1637. https://doi.org/10.1108/IMDS-01-2019-0011.

Wonglimpiyarat, J. (2017). FinTech banking industry: A systemic approach. Foresight, 19(6), 590–603. https://doi.org/10.1108/FS-07-2017-0026.

Xiao, Q., Liu, H., & Feldman, M.W. (2017). How does trust affect acceptance of a nuclear power plant (NPP): A survey among people living with Qinshan NPP in China. PLOS, 1–16.

Xu, Y., Chong, T.W., Krilavičius, T., & Man, K.L (2015). Perceived benefits, risks and trust on online shopping festival. 225-235. 10.1007/978-3-319-24770-0_20.

Sullivan, Y.W. & Kim, D.J. (2018). Assessing the effect of consumers’ product evaluations and trust on repurchase intention in e-commerce environments. International Journal of Information Management, 39, 199-219.

Zhong, R.Y., Xu, X., Klotz, E., & Newman, S.T. (2017). Intelligent manufacturing in the context of industry 4.0: A review. Engineering, 3(5), 616–630. https://doi.org/10.1016/J.ENG.2017.05.015.

Zhou, W., Tsiga, Z., Li, B., Zheng, S., & Jiang, S. (2018). What influence users’ e-finance continuance intention? The moderating role of trust. Industrial Management and Data Systems, 118(8), 1647–1670. https://doi.org/10.1108/IMDS-12-2017-0602.

Digital Source:

Bank Indonesia. (2017). Ruang uji coba terbatas (regulatory sandbox) teknologi finansial (space for limited trial (regulatory sandbox) of financial technology). Jakarta: Bank Indonesia. Retrieved from https://www.bi.go.id/elicensing/helps/PADGREGSAND.pdf.

Bazarbash, M. (2019). FinTech in financial inclusion: Machine learning applications in assessing credit risk. In IMF Working Papers No. 19/109. https://doi.org/10.5089/9781498314428.001.

E&Y. (2017). EY FinTech Adoption Index 2017-The rapid emergence of fintech. EY FinTech Adoption Index 2017. Retrieved from http://www.ey.com/GL/en/Industries/Financial-Services/ey-fintechadoption-index.

Fintech News Network. (2020). Indonesia fintech report 2020. Singapore: Fintech News Network. https://fintechnews.sg/45513/indonesia/indonesia-fintech-report-and-map-2020/.

Jayani, D.H. (2019). Fintech P2P lending dan pembayaran tumbuh paling pesat. Katadata.co.id. https://databoks.katadata.co.id/datapublish/2019/09/05/fintech-p2p-lending-dan-pembayaran-tumbuhpaling-pesat#.

Jiwasiddi, A., Adhikara, C., Adam, M., & Triana, I. (2019). Attitude toward using fintech among Millennials. WoMELA-GG. https://doi.org/10.4108/eai.26-1-2019.2283199.

Other Sources:

Harahap, B.A., Idham, P.B., Kusuma, A.C.M., & Rakhman, R.N. (2017). Perkembangan financial technology terkait Central Bank Digital Currency (CBDC) terhadap transmisi kebijakan moneter dan makroekonomi. In Bank Indonesia.

Khozin, N. (2018). The impact of mobile payment and trust on consumer intention to use Go-Pay in Gojek (case study in The City of South Jakarta). Skripsi. Management Departemen, International Program, Faculty Economics and Business, State Islam University Syarif Hidayatullah.

Nizar, M.A. (2017). Financial technology (Fintech): It’ s concept and implementation in Indonesia. Munich Personal RePEc Archive, No. 98486/Issue 98486.

DOI: https://doi.org/10.22212/jekp.v13i1.1980