Toward A Conceptual Model Of Fintech Adoption Incorporating Risk-Benefit Perceptions And External Drivers

Abstract

The rapid advancement of technology has disrupted various industries, including the financial sector, with the emergence of Financial Technology (FinTech). The exponential growth of FinTech has not only transformed the conventional financial industry landscape but also revolutionized the broader financial ecosystem. FinTech innovations are designed to enhance efficiency, accessibility, and user experience—offering strategic value for business sustainability. For micro, small, and medium enterprises (MSMEs), FinTech adoption presents a critical opportunity for digital transformation. However, the adoption process remains challenging, especially due to trust-related concerns shaped by perceived benefits and perceived risks. Furthermore, external factors such as social influence and government support may serve as moderating variables that either strengthen or diminish the adoption process. This study aims to develop a conceptual model of FinTech adoption by integrating perceived benefit, perceived risk, and trust, while incorporating external moderating factors such as social influence and government support. The conceptual model is formulated through a literature review of relevant theoretical frameworks and empirical findings across multidisciplinary studies. The proposed model contributes to the development of a more holistic understanding of FinTech adoption in the MSME context by bridging internal cognitive factors and external environmental enablers. This model is expected to serve as a foundation for future empirical testing and policy formulation to support digital financial inclusion and strengthen the sustainability of MSMEs in the digital era.