Financial Inclusion and Digital Capability in Indonesia’s Fintech: Roles of Government Facilitation and Perceived Usefulness

As financial technology (FinTech) rapidly transforms access to financial services in developing economies, questions remain about the mechanisms through which such innovations foster genuine financial inclusion. This study investigates the role of perceived usefulness and government facilitation in enhancing financial inclusion, and critically examines how digital financial literacy (DFL) moderates these relationships. Anchored in the Technology Acceptance Model and capability-oriented frameworks, a survey was conducted in selected districts of South Sulawesi, Indonesia, and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results confirm that both perceived usefulness and government facilitation significantly and positively affect financial inclusion. Moreover, DFL was found to significantly moderate the influence of perceived usefulness, amplifying its effect on inclusive financial behaviour. However, its moderating role on government facilitation was statistically insignificant, indicating potential contextual or intervening factors. The study contributes to the literature by integrating institutional, perceptual, and capability dimensions into a cohesive model of digital financial inclusion. Practically, it highlights the need for policies that not only expand access and infrastructure, but also elevate user literacy to convert digital opportunities into inclusive financial outcomes.