Fintech Usage, Risk Perception, and Data Privacy Concerns on Trust in Digital Financial Services in Indonesia
DOI:
https://doi.org/10.58812/wsaf.v4i01.2742Keywords:
Fintech Usage, Risk Perception, Data Privacy Concerns, Trust, Digital Financial ServicesAbstract
This study aims to analyze the effect of fintech usage, risk perceptions, and data privacy concerns on trust in digital financial services in Indonesia. The rapid development of financial technology has increased the adoption of digital financial services; however, trust remains a crucial factor influencing user acceptance and continued usage. This research employs a quantitative approach using primary data collected from 150 respondents through structured questionnaires measured on a Likert scale. Data analysis was conducted using SPSS version 25, including validity and reliability tests, classical assumption tests, and multiple linear regression analysis. The results show that fintech usage has a positive and significant effect on trust, indicating that higher levels of usage and familiarity increase user confidence in digital financial services. Conversely, risk perception has a negative and significant effect on trust, suggesting that concerns about financial loss, system errors, and fraud reduce users’ willingness to rely on fintech platforms. Similarly, data privacy concerns are found to negatively and significantly influence trust, highlighting that fears related to personal data misuse and security breaches undermine user confidence. Simultaneously, fintech usage, risk perception, and data privacy concerns significantly affect trust, with an R² value of 0.465, indicating that 46.5% of the variation in trust is explained by these variables. This study contributes to the literature by providing empirical evidence on the determinants of trust in digital financial services in Indonesia. The findings offer practical implications for fintech providers and policymakers to enhance user trust by improving system security, strengthening data protection measures, and increasing user awareness of fintech services.
References
[1] A. Khang, A. Misra, S. K. Gupta, and V. Shah, AI-Aided IoT Technologies and Applications for Smart Business and Production. books.google.com, 2023.
[2] D. A. Zetzsche, R. P. Buckley, J. N. Barberis, and ..., “Regulating a revolution: From regulatory sandboxes to smart regulation,” Fordham J. Corp. &Fin …, 2017.
[3] D. P. Restuputri, F. B. Refoera, and I. Masudin, “Investigating Acceptance of Digital Asset and Crypto Investment Applications Based on the Use of Technology Model (UTAUT2),” FinTech, vol. 2, no. 3. pp. 388–413, 2023. doi: 10.3390/fintech2030022.
[4] T. Ardiansyah, “Model financial dan teknologi (fintech) membantu permasalahan modal wirausaha UMKM Di Indonesia,” Maj. Ilm. Bijak, vol. 16, no. 2, pp. 158–166, 2019.
[5] F. A. Hudaefi, M. K. Hassan, and M. Abduh, “Exploring the development of Islamic fintech ecosystem in Indonesia: a text analytics,” Qual. Res. Financ. Mark., vol. 15, no. 3, pp. 514–533, 2023.
[6] S. Syarifuddin, R. Muin, and A. Akramunnas, “The potential of sharia fintech in increasing micro small and medium enterprises (MSMES) in the digital era in Indonesia,” J. Huk. Ekon. Syariah, vol. 4, no. 1, pp. 23–36, 2021.
[7] A. Antoni, L. Judijanto, and A. Supriadi, “Impact of Fintech Adoption, MSME Digital Readiness, and Regulatory Environment on Financial Performance in Indonesia,” West Sci. Account. Financ., vol. 2, no. 02, pp. 275–286, 2024, doi: 10.58812/wsaf.v2i02.1046.
[8] W. Li, “The role of trust and risk in Citizens’ E-Government services adoption: A perspective of the extended UTAUT model,” Sustainability, vol. 13, no. 14, p. 7671, 2021.
[9] G. Klein, Z. Shtudiner, and M. Zwilling, “Why do peer-to-peer (P2P) lending platforms fail? The gap between P2P lenders’ preferences and the platforms’ intentions,” Electron. Commer. Res., vol. 23, no. 2, pp. 709–738, 2023, doi: 10.1007/s10660-021-09489-6.
[10] І. Брітченко, Y. Polishchuk, Y. Sybirianska, Y. Vasylyshen, and M. Dyba, “Britchenko I. Fintech platforms in SME’s financing: EU experience and ways of their application in Ukraine/Alla Ivashchenko, Igor Britchenko, Mykhailo Dyba, Yevheniia Polishchuk, Yuliia Sybirianska, Yurii Vasylyshen//Investment Management and Financial In,” Invest. Manag. Financ. Innov., vol. 15, Jul. 2018, doi: 10.21511/imfi.15(3).2018.07.
[11] R. Stevy, I. Puspa, D. Widjaja, and R. Ongsa, “Analysis of Internal Factors for Improving the Performance of Startup Companies in Medan, Indonesia,” J. Madani Soc., vol. 2, no. 1 SE-Articles, pp. 67–74, Apr. 2023, doi: 10.56225/jmsc.v2i1.179.
[12] A. K. Kushwaha, A. K. Kar, and Y. K. Dwivedi, “Applications of big data in emerging management disciplines: A literature review using text mining,” … Journal of Information Management …. Elsevier, 2021.
[13] D. Kotios, G. Makridis, S. Walser, D. Kyriazis, and ..., “Personalized finance management for smes,” … in Digital Finance …. library.oapen.org, 2022.
[14] I. Puspitowati, C. M. Firdausy, and S. E. Handoyo, “Do Financial Access, Digitalization Adoption, Innovation, and Market Orientation Influence Business Performance of Micro-Small Enterprises?,” in Proceeding of The International Conference on Business and Economics, 2024, pp. 14–24.
[15] N. Singh, “Data Security and Consumer Trust in Fintech Innovations using Technology Adoption Method,” INTERANTIONAL J. Sci. Res. Eng. Manag., 2024.
[16] N. Nurchayati, R. Ariyanti, and I. Marianingsih, “How Fintech Adoption, Digital Payment Systems, and Consumer Trust Shape Financial Performance of MSMEs,” Int. J. Business, Law, Educ., vol. 5, no. 2, pp. 2458–2469, 2024.
[17] M. Solarz and J. Adamek, “Trust and Personal Innovativeness as the Prerequisites for Using Digital Lending Services Offered by FinTech Lenders,” Ann. Univ. Mariae Curie-Skłodowska, Sect. H Oeconomia, vol. 57, no. 1, 2023.
[18] A. L. GHOFAR, R. N. P. PUTRA, and S. N. HAMIDAH, “Implementation Of Gateway Technology (Go-Pay) In Increasing Transaction Efficiency In MSMEs Dapur Restu,” J. Inf. Syst. Digit. Bus., vol. 1, no. 1, pp. 08–14, 2022, doi: 10.38142/jisdb.v1i1.651.
[19] C. Haddad and L. Hornuf, “The Impact of Fintech Startups on Financial Institutions’ Performance and Default Risk,” 2021.
[20] A. Maulana, M. Dwita, M. Fitriyani, D. Sunaryo, and Y. Adiyanto, “Risk management as a determinant of Indonesian banking financial performance: A systematic literature approach,” Indo-Fintech Intellectuals J. Econ. Bus., vol. 5, pp. 8–11, 2024.
[21] R. de Kervenoael, R. Hasan, A. Schwob, and E. Goh, “Leveraging human-robot interaction in hospitality services: Incorporating the role of perceived value, empathy, and information sharing into visitors’ intentions to use social robots,” Tour. Manag., vol. 78, p. 104042, 2020, doi: https://doi.org/10.1016/j.tourman.2019.104042.
[22] J. Billanes and P. Enevoldsen, “A critical analysis of ten influential factors to energy technology acceptance and adoption,” Energy Reports, vol. 7, pp. 6899–6907, 2021, doi: https://doi.org/10.1016/j.egyr.2021.09.118.
[23] A. Hannoon, A. Al-Sartawi, and A. A. Khalid, “Relationship between financial technology and financial performance,” big data-driven Digit. …, 2021, doi: 10.1007/978-3-030-73057-4_26.
[24] D. A. Singh, “Employee Engagement for Business Sustenance: a Strategic Data Driven Approach,” TechHumanize Fintech Evol. HR - Innov. Challenges, Futur. Perspect., pp. 40–46, 2024, doi: 10.58532/nbennurttch5.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Wahyuni Sri Astutik, Adih Supriadi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
westscience.journals@gmail.com