Assessing Technology-Driven Financial Inclusion Strategies in Emerging Markets: An Empirical Study

Economic progress depends on financial inclusion, especially in emerging nations where a sizable segment of the population lacks access to banking. This research aims to evaluate the efficacy of technology-driven financial inclusion initiatives in Indonesia, focusing on the influence of perceived utility, perceived simplicity of use, and technological trust on the uptake of these services. A quantitative approach was employed using a survey of 263 respondents, with SmartPLS utilized to analyze the data for assessing construct validity and reliability and examining proposed correlations. The findings reveal that trust in technology emerged as a significant barrier, negatively impacting user adoption, while perceived usefulness and convenience of use positively influence adoption. However, there is a discrepancy between the potential benefits of these technologies and their actual adoption, as indicated by the non-significant association between financial inclusion outcomes and technology adoption. The novelty of this study lies in highlighting the critical need to address trust issues and improve user experience to enhance the use of digital financial services in emerging nations. Actionable insights derived from these findings can aid policymakers and financial service providers in better promoting financial inclusion through technology.