The Determinant of Fintech Adoption among Gen Z in Indonesia

This gap in financial literacy has the potential to hinder effective fintech adoption, posing a risk to financial inclusion and national economic development. Therefore, it is crucial to develop strategies that enhance financial literacy and support broader adoption of financial technology in Indonesia. This study aims to analyze the determinants of fintech adoption among Generation Z (Gen Z) in Indonesia, focusing on brand image, perceived ease of use, perceived usefulness, financial literacy, user innovativeness, and government support. The study employs a quantitative method with a Structural Equation Modeling (SEM) and Partial Least Square (PLS) approach. Data were collected through online questionnaires from 100 Gen Z fintech users in Indonesia between April and September 2024. The results indicate that brand image and perceived usefulness do not significantly influence fintech adoption. However, perceived ease of use and financial literacy significantly enhance fintech adoption. Furthermore, financial literacy and perceived ease of use mediate the impact of government support on fintech adoption. Interestingly, user innovativeness was found to reduce fintech adoption, potentially due to a critical stance toward new technology. The study suggests that fintech companies should focus on enhancing tangible benefits and ease of use, while the government should work on improving financial literacy among the population. Future research should consider using more specific samples and qualitative approaches to gain deeper insights into the motivations and barriers faced by Gen Z in adopting fintech.