An Empirical Study on Customer Acceptance of FinTech 3.0 in Private Banking

The recent developments of information technology have led to more automation process that enforce a fundamental reorganization of the business models of financial services value chain and highly recognized with the term ‘Financial Technology" or "FinTech" in short. The research analyzed the important factors that affect the usage behavior as well as the effectiveness towards usage behavior of FinTech 3.0 adoptions in one of the well-known private banks in Indonesia. The findings of the test showed that four out of five variables have significant value towards the hypothesis of this research. This means the likelihood of people use FinTech is mostly determined by the perceived of usefulness, ease, and availability of required resources. This information is significant to the banks to innovate their services and products that will be in accordance with customers’ preference as well in competing with other non-financial industry. With the dynamic changes and competitive advantages offered by various parties, this research extends the existing literatures by providing real insights from the users of FinTech in one of the prominent BUKU 4 (Commercial Bank Based on Business Activities) with a core capital of more than IDR 30 trillion. In Indonesia’s banking industry, the reputation of this institution in this research is more than enough to make people choose their services and gain trust to use the technology. However, this might not be the case with other banks, considering the market competitiveness between financial and non-financial institutions.