The Effect of Digital Banking Adoption, Trust in Fintech, Perceived Security, and Customer Satisfaction on Financial Inclusion in Indonesian Banking

Authors

  • Mohammad Ridwan Universitas Muhammadiyah Semarang
  • Ria Puspitasari Universitas Muhammadiyah Tangerang
  • Tri Winarsih Institut Teknologi dan Bisnis Ahmad Dahlan Lamongan
  • Ingkak Chintya Wangsih Universitas Muhammadiyah A.R Fachruddin
  • Eko Sudarmanto Universitas Muhammadiyah Tangerang

DOI:

https://doi.org/10.58812/wsbm.v3i01.1794

Keywords:

Financial Inclusion, Digital Banking Adoption, Trust in Fintech, Perceived Security, Customer Satisfaction

Abstract

This study investigates the impact of Digital Banking Adoption, Trust in Fintech, Perceived Security, and Customer Satisfaction on Financial Inclusion in Indonesian banking. Employing a quantitative approach, data were collected from 110 respondents using a Likert scale (1–5) and analyzed using Structural Equation Modeling - Partial Least Squares (SEM-PLS) 3. The findings reveal that all four variables significantly and positively influence financial inclusion, with Digital Banking Adoption exerting the strongest impact. The model explains 68% of the variance in Financial Inclusion, underscoring the importance of digital transformation, trust-building, robust security, and customer satisfaction in enhancing financial accessibility. These results provide valuable insights for policymakers and financial institutions to develop targeted strategies that foster financial inclusion in Indonesia.

References

[1] N. H. Putri, L. Sukarniati, G. D. Asmara, and F. P. Purna, “Analysis of financial inclusion and financial stability on economic development in APEC member countries,” Optim. J. Ekon. dan Pembang., vol. 14, no. 2, pp. 213–223, 2024.

[2] B. S. Dana, “Inclusive growth in rural Indonesia: exploring the tnteraction between technology and financial inclusion,” Indones. J. Islam. Econ. Res., vol. 6, no. 2, pp. 94–101, 2024.

[3] C. Azmeh and M. Al-Raeei, “Exploring the dual relationship between fintech and financial inclusion in developing countries and their impact on economic growth: Supplement or substitute?,” PLoS One, vol. 19, no. 12, p. e0315174, 2024.

[4] A. T. Nugraha and G. Prayitno, “Regional disparity in western and eastern Indonesia,” Int. J. Econ. Bus. Adm., vol. 8, no. 4, pp. 101–110, 2020.

[5] W. Wisetsri, P. Clingan, R. J. Dwyer, and D. Bakhronova, “Emerging Trends in Smart Societies: Interdisciplinary Perspectives,” 2024.

[6] I. Hossain, “Factors Influencing Adoption of E-Commerce in Retail Sector in Bangladesh,” 2024.

[7] T. D. Warninda, “Impact of Financing Diversification on islamic bank Credit Risk,” 2020.

[8] A. Dangkeng, “Fintech and Financial Inclusion: How Digital Payment Systems Empower Small Entrepreneurs,” J. Indones. Sch. Soc. Res., vol. 5, no. 1, pp. 46–55, 2025.

[9] M. R. A. Aziz, M. Z. Jali, M. N. M. Noor, S. Sulaiman, M. S. Harun, and M. Z. I. Mustafar, “Bibliometric analysis of literatures on digital banking and financial inclusion between 2014-2020,” Libr. Philos. Pract., vol. 5, no. 13, p. 2021, 2021.

[10] H. Alamoudi, R. Glavee-Geo, M. Alharthi, R. Doszhan, and M. M. Suyunchaliyeva, “Exploring trust and outcome expectancy in FinTech digital payments: insights from the stimulus-organism-response model,” Int. J. Bank Mark., 2025.

[11] N. Abbas and H. G. M. Khan, “The Role of Financial Literacy and Technology savviness on Fintech Adoption in Traditional Banking, the Mediating Role of Trust in Technology,” Pakistan J. Humanit. Soc. Sci., pp. 3183–3191, 2024.

[12] J. Hurani and M. K. Abdel-Haq, “Factors Influencing FinTech Adoption Among Bank Customers in Palestine: An Extended Technology Acceptance Model Approach,” Int. J. Financ. Stud., vol. 13, no. 1, p. 11, 2025.

[13] A. K. Bayya, “Implementing AI-Driven Transaction Security Protocols and Automation in Next-Gen FinTech Solutions,” Asian J. Math. Comput. Res., vol. 32, no. 1, pp. 104–132, 2025.

[14] M. A. Idrees, M. N. Khan, M. Farhan, and M. U. Zafar, “Investigating the factors influencing the acceptance of Islamic Mobile Fintech service a Utaut2 perspective,” Kurd Stud, vol. 12, no. 2, pp. 6526–6541, 2024.

[15] K. Somuncu, “The Relationship Between Financial Inclusion and Real Economic Growth: Examples from Turkey, Developing Countries, Developed Countries, and the World,” Yönetim Bilim. Derg., vol. 23, no. 55, pp. 310–335, 2025.

[16] V. Saienko, A. Skomorovskyi, V. Iermak, O. Sereda, and O. Bulavynets, “The Role of Financial Inclusion in Driving Economic Growth,” African J. Appl. Res., vol. 11, no. 1, pp. 472–483, 2025.

[17] B. Zulfiqar, M. S. Ijaz, and M. Hanif, “Nurturing Sustainable Futures: Islamic Green Finance and the Sustainable Development Agenda,” in The Palgrave Handbook of Green Finance for Sustainable Development, Springer, 2024, pp. 191–206.

[18] C. Jalhare, “The Role of Microfinance in Economic Development: A Critical Review of Impact and Effectiveness,” Int. J. Innov. Sci. Eng. Manag., pp. 130–135, 2025.

[19] C. Dhanalakshmi, B. Rohith, and V. M. Bhavya, “The Role of Microfinance in Driving Economic Growth and Financial Inclusion in India,” 2025.

[20] S. A. Kareem, “Technology Transformation Impact on Digital Banking Services: A Study on Analyzing the Adoption and Satisfaction Levels of Users,” in Shaping Cutting-Edge Technologies and Applications for Digital Banking and Financial Services, Productivity Press, 2025, pp. 138–146.

[21] V. Jadhav and A. Khang, “Cutting-Edge Technologies and Applications for Digital Banking and Financial Services,” Shap. Cutting-Edge Technol. Appl. Digit. Bank. Financ. Serv., p. 1, 2025.

[22] F. N. Samara, B. R. Prawoto, A. Maulana, A. R. Firdaus, and N. G. Dewi, “The Role of Banking Digitalization in Enhancing Business Capacity among Rural Communities in Indonesia,” J. Akunt. dan Bisnis, vol. 10, no. 02, pp. 144–153, 2025.

[23] A. Raman, R. Balakrishnan, A. R. Arokiasamy, M. Pant, C. Batumalai, and M. Kuppusamy, “Design and Developing a Security and Threat Model for Sustainable Manufacturing,” J. Internet Serv. Inf. Secur., vol. 14, no. 3, pp. 245–255, 2024.

[24] О. С. Мирошниченко, “Финансовая доступность банковских услуг для потребителей в условиях цифровизации,” Финансы теория и практика, vol. 28, no. 6, pp. 134–142, 2024.

[25] T. Renduchintala, H. Alfauri, Z. Yang, R. Di Pietro, and R. Jain, “A survey of blockchain applications in the fintech sector,” J. Open Innov. Technol. Mark. Complex., vol. 8, no. 4, p. 185, 2022.

[26] R. Ramadugu and L. Doddipatla, “Emerging trends in fintech: How technology is reshaping the global financial landscape,” J. Comput. Innov., vol. 2, no. 1, 2022.

[27] H. Velichová, E. Lukášková, F. Buňka, K. Pitrová, and D. Vičar, “Ewa SOBOLEWSKA-PONIEDZIAŁEK,” 2020.

[28] A. Mursidi, W. A. Mahyudin, and U. H. M. S. Lee, “EXAMINING THE INFLUENCE OF PRODUCT QUALITY, SERVICE QUALITY, AND DELIVERY PERFORMANCE ON GENERATION Y’S ONLINE SHOPPING SATISFACTION: THE MEDIATING ROLE OF PERCEIVED SECURITY,” iBAF e-Proceedings, vol. 11, no. 1, pp. 307–323, 2024.

[29] Q. B. Tran, T. B. T. Nguyen, T. T. C. Nguyen, and D. A. Duong, “Impact of perceived safety on customers’ use of digital banking services at commercial banks: A case study in Vietnam,” Asian Econ. Financ. Rev., vol. 14, no. 10, p. 782, 2024.

[30] U. Sarwar, N. Bint-e-Naeem, L. Fahmeed, and M. Atif, “Role of Perceived Security and Financial Attitude in Shaping Behavioral Intention under the Moderation of Financial Literacy,” J. Asian Dev. Stud., vol. 13, no. 3, pp. 1380–1395, 2024.

[31] S. Ganapathyraman and S. Suresh, “" A Study on the Customer Awareness on Security Issues and Threats in Digital Banking in Chennai,” 2025.

[32] B. A. Patel and R. Patel, “‘ HINDRANCE OF DIGITAL E-BANKING SERVICES: AN ANALYTICAL INVESTIGATION ON COOPERATIVE BANKING’.,” Libr. Progress-Library Sci. Inf. Technol. Comput., vol. 44, 2024.

[33] G. Osuma and N. Nzimande, “Disaggregated effects of artificial intelligence, online and mobile banking on customer satisfaction in banks: An analysis using structural equation modelling,” J. Infrastructure, Policy Dev., vol. 8, no. 15, p. 9941, 2024.

[34] S. Kaur and N. Walia, “Adoption of NFC-mobile payments by Generation Y consumers in Punjab: empirical evidence from UTAUT,” Int. J. Bus. Innov. Res., vol. 32, no. 4, pp. 525–542, 2023.

[35] H. Wiranto, R. T. Dirgahayu, and M. A. Setiawan, “Analisis Customer Loyalty dan Customer Satisfaction dalam Penggunaan Aplikasi Dana melalui Digital Customer Experience,” Edumatic J. Pendidik. Inform., vol. 8, no. 2, pp. 428–436, 2024.

[36] M. Y. CISSÉ and M. KPOGHOMOU, “ANALYSE DES FACTEURS DE SATISFACTION DES CLIENTS FACE À L’UTILISATION DES SERVICES BANCAIRES DIGITAUX,” 2024.

[37] F. W. Putri, “Pengaruh Efektivitas, Kemudahan Dan Keamanan Layanan Terhadap Kepuasan Nasabah Bertransaksi Menggunakan Mobile Banking Bank Syariah Indonesia,” 2022.

[38] M. A. Al-Afeef, A. A. Alsmadi, M. Al-Okaily, and A. Al-Sartawi, “The role of peer-to-peer lending platforms in expanding financial inclusion,” in Artificial Intelligence and Economic Sustainability in the Era of Industrial Revolution 5.0, Springer, 2024, pp. 137–150.

[39] S. P. Arliyanti and R. F. Astuti, “Pembangunan ekonomi berkelanjutan: Penerapan fintech terhadap inklusi keuangan pada era ekonomi digital,” J. Econ. Res. Policy Stud., vol. 4, no. 3, pp. 561–571, 2024.

[40] I. Y. Opoku-Okuampa, “Impact of Digital Financial Services on Economic Inclusion in Sub-Saharan Africa,” Int. J. Econ. Energy Environ., vol. 9, no. 5, pp. 119–128, 2024.

[41] H. O. Ergün, “The Effect Of Digital Technologies On Financial Inclusion: The Case Of The Emerging European Economies,” InTraders Int. Trade Acad. J., vol. 7, no. 2, pp. 67–80, 2024.

[42] K. Mahmud, “Sustainable Economic Growth for Developing Countries through Fintech Ecosystem: A Case Study on Bangladesh.” © University of Dhaka, 2024.

[43] D. M. de Sant’Anna and P. N. Figueiredo, “Fintech innovation: Is it beneficial or detrimental to financial inclusion and financial stability? A systematic literature review and research directions,” Emerg. Mark. Rev., p. 101140, 2024.

[44] A. Madbouly, P. Radhakrishnan, and N. H. Ali, “Impact of FinTech on Sustainable Financial Inclusion-The Case of India,” 2024.

[45] M. B. Amnas, M. Selvam, and S. Parayitam, “FinTech and financial inclusion: Exploring the mediating role of digital financial literacy and the moderating influence of perceived regulatory support,” J. Risk Financ. Manag., vol. 17, no. 3, p. 108, 2024.

[46] R. C. Mwanza, “Digital financial services and risk management in Zimbabwe: a case of the microfinance industry.” 2021.

[47] S. Gupta and R. P. Kanungo, “Financial inclusion through digitalisation: Economic viability for the bottom of the pyramid (BOP) segment,” J. Bus. Res., vol. 148, pp. 262–276, 2022.

[48] G. P. Sukandar and M. Y. Febrianta, “The effect of service quality and customer satisfaction on the flip app customer loyalty in Indonesia,” JPPI (Jurnal Penelit. Pendidik. Indones., vol. 10, no. 4, pp. 899–907, 2024.

Downloads

Published

2025-03-28

Issue

Vol. 3 No. 01 (2025): West Science Business and Management

Section

Articles

License

Copyright (c) 2025 Mohammad Ridwan, Ria Puspitasari, Tri Winarsih, Ingkak Chintya Wangsih, Eko Sudarmanto

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite

The Effect of Digital Banking Adoption, Trust in Fintech, Perceived Security, and Customer Satisfaction on Financial Inclusion in Indonesian Banking (M. Ridwan, R. . Puspitasari, T. . Winarsih, I. C. . Wangsih, & E. . Sudarmanto , Trans.). (2025). West Science Business and Management, 3(01), 158-168. https://doi.org/10.58812/wsbm.v3i01.1794