Financial technology (Fintech) innovation and financial inclusion: comparative study of urban and rural consumers post-Covid-19 pandemic

This study refines the technology acceptance model (TAM) to explore the determinants of financial innovation or financial technology (Fintech) adoption and their impact on use behavior, particularly in the context of financial inclusion. It investigates how these drivers differ between urban and rural populations in terms of the innovation of digital financial literacy, behavioral intentions, and government support. Data from 654 respondents in Indonesia were analyzed using partial least squares-structural equation modeling (PLS-SEM). The findings indicate that value of status quo is the principal factor influencing Fintech adoption, while personal innovativeness has a minimal effect. Behavioral intention positively correlates with use behavior, which in turn significantly enhances financial inclusion. The study also identifies personal innovativeness, government support, and value of status quo as mediating factors between behavioral intention and use behavior. Notable differences were found between urban and rural respondents regarding the influence of digital financial literacy on behavioral intention and the impact of government support on use behavior in the post-Covid-19. This research not only empirically assesses the role of Fintech in advancing financial inclusion through behavioral intention and use behavior, but also provides strategic insights for digital finance innovation providers to tailor financial access according to the location of the respondents.