THE EFFECT OF INDIVIDUAL PERCEPTIONS OF INTERNET CONNECTION QUALITY AND DIGITAL FINANCIAL SERVICES’ PLATFORM CREDIBILITY ON THE USAGE OF DIGITAL FINANCIAL SERVICES
Abstract
Digital Financial Services (DFS) present an opportunity to expand financial access within society; however, DFS adoption remains relatively low in Indonesia. This study aims to assess how individual perceptions of internet connection quality and the credibility of DFS platforms influence their adoption in Indonesia. Utilizing data from the 2020 Digital Economy Household Survey (DEHS) and employing the probit and ordered probit estimation models, the research demonstrates a positive and significant relationship between perceptions of internet connection quality, DFS platform credibility, and the likelihood and frequency of DFS usage. Notably, a majority of DFS users fall under the "occasionally used" category, indicating usage ranging from 3 to 30 minutes per day. The study underscores the need for collaborative efforts to establish a well-distributed, trusted, and secure DFS ecosystem. This necessitates addressing regulatory frameworks, enhancing infrastructure, and improving public financial literacy to enhance user acceptance and utilization of DFS platforms.
References
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T.
APJII. (2022). Profile Internet Indonesia 2022. https://apjii.or.id/content/read/39/559/Laporan-Survei-Profil-Internet-Indonesia-2022.
Caron, L. (2022). Empty digital wallets: new technologies and old inequalities in digital financial services among women. Oxford Open Economics, 1. https://doi.org/10.1093/ooec/odac001.
Chamboko, R. (2022). On the Role of Gender and Age in the Use of Digital Financial Services in Zimbabwe. International Journal of Financial Studies, 10(3). https://doi.org/10.3390/ijfs10030082.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. https://doi.org/https://doi.org/10.2307/249008.
Gruber, H., & Koutroumpis, P. (2011). Mobile telecommunications and the impact on economic development. Economic Policy, 26(67). https://doi.org/10.1111/j.1468-0327.2011.00266.x.
Hill, R. J., Fishbein, M., & Ajzen, I. (1977). Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research. Contemporary Sociology, 6(2). https://doi.org/10.2307/2065853.
ITU. (2016). QoS and QoE Aspects of digital financial services. ITU-T Focus Group Digital Financial Services.
Kaur, S. J., Ali, L., Hassan, M. K., & Al-Emran, M. (2021). Adoption of digital banking channels in an emerging economy: exploring the role of in-branch efforts. Journal of Financial Services Marketing, 26(2). https://doi.org/10.1057/s41264-020-00082-w.
Kim, G., Shin, B., & Lee, H. G. (2009). Understanding dynamics between initial trust and usage intentions of mobile banking. Information Systems Journal, 19(3). https://doi.org/10.1111/j.1365-2575.2007.00269.x.
Kominfo. (2022). Status literasi digital di Indonesia 2021.
Lenka, S. K., & Barik, R. (2018). Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries? Financial Innovation, 4(1). https://doi.org/10.1186/s40854-018-0089-x.
Ljumović, I., Jakšić, K., & Trajković, S. (2021). Socio-demographic characteristics of digital financial services users: Evidence from Serbia. Ekonomika, 67(4). https://doi.org/10.5937/ekonomika2104055l.
Luarn, P., & Lin, H.-H. (2005). Toward an understanding of the behavioral intention to use mobile banking. Computers in Human Behavior, 21(6), 873–891.
Marumbwa, J. (2014). Exploring the Moderating Effects of Socio-Demographic Variables on Consumer Acceptance and Use of Mobile Money Transfer Services (MMTs) in Southern Zimbabwe. American Journal of Industrial and Business Management, 04(02). https://doi.org/10.4236/ajibm.2014.42011.
Maulana, R., & Nuryakin, C. (2021). The effect of saving account ownership and access to financial institutions on household loans in indonesia. Buletin Ekonomi Moneter Dan Perbankan, 24(3). https://doi.org/10.21098/bemp.v24i3.1428.
Mouna, A., & Jarboui, A. (2022). Understanding the link between government cashless policy, digital financial services and socio-demographic characteristics in the MENA countries. International Journal of Sociology and Social Policy, 42(5–6). https://doi.org/10.1108/IJSSP-12-2020-0544.
Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4). https://doi.org/10.1016/j.bir.2017.12.003.
Palfrey, J., & Gasser, U. (2011). Born digital: Understanding the first generation of digital natives. ReadHowYouWant.com.
Pavlou, P. A. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 7(3), 101–134.
Ravikumar, T., Rajesh, R., Krishna, T. A., Haresh, R., & Arjun, B. S. (2022). Changing customer mindset in adopting digital financial services during the COVID-19 pandemic: Evidence from India. Banks and Bank Systems, 17(3). https://doi.org/10.21511/bbs.17(3).2022.06.
Roostika, R. (2011). Perceived service quality and trust on satisfaction: customer’s perspectives in the banking sector. Jurnal Keuangan Dan Perbankan, 15(2). https://doi.org/https://doi.org/10.26905/jkdp.v15i2.1022.
Ruth, E. (2015). Deskripsi Kualitas Layanan Jasa Akses Internet di Indonesia dari Sudut Pandang Penyelenggara. Buletin Pos Dan Telekomunikasi, 11(2). https://doi.org/10.17933/bpostel.2013.110204.
Sastiono, P., & Nuryakin, C. (2019). Inklusi keuangan melalui program layanan keuangan digital dan laku pandai. Jurnal Ekonomi Dan Pembangunan Indonesia, 19(2), 242–262.
Soumaré, I., Tchana Tchana, F., & Kengne, T. M. (2016). Analysis of the determinants of financial inclusion in Central and West Africa. Transnational Corporations Review, 8(4). https://doi.org/10.1080/19186444.2016.1265763.
Suleiman, A., Dewaranu, T., & Anjani, N. H. (2022). Menciptakan konsumen yang terinformasi: melacak program-program literasi keuangan di Indonesia. Center for Indonesian Policy Studies, 49. https://doi.org/https://doi.org/10.35497/359634.
Trinugroho, I., Sawitri, H. S. R., Toro, M. J. S., Khoiriyah, S., & Santoso, A. B. (2017). How ready are people for cashless society? Jurnal Keuangan Dan Perbankan, 21(1). https://doi.org/10.26905/jkdp.v21i1.1231.
Wang, Y. S., Wang, Y. M., Lin, H. H., & Tang, T. I. (2003). Determinants of user acceptance of Internet banking: An empirical study. International Journal of Service Industry Management, 14(5). https://doi.org/10.1108/09564230310500192.
World Bank. (2020). Indonesia Digital Economy Household Survey (DEHS) 2020. Ref: IDN_2020_DEHS_v01_M. Downloaded from https://microdata.worldbank.org/ on October 10, 2022.
Yasmin, A. A., & Dirbawanto, N. D. (2022). The Effect Of Perception Of Benefits, Ease Of Use, Risk And Trust In Customers’ Interest In Using BNI Mobile Banking. JOURNAL OF HUMANITIES, SOCIAL SCIENCES AND BUSINESS (JHSSB), 2(1). https://doi.org/10.55047/jhssb.v2i1.406.
Yousafzai, S. Y., Foxall, G. R., & Pallister, J. G. (2010). Explaining internet banking behavior: Theory of reasoned action, theory of planned behavior, or technology acceptance model? Journal of Applied Social Psychology, 40(5). https://doi.org/10.1111/j.1559-1816.2010.00615.x.
Zeng, Y., & Li, Y. (2023). Understanding the use of digital finance among older internet users in urban China: Evidence from an online convenience sample. Educational Gerontology, 49(6). https://doi.org/10.1080/03601277.2022.2126341.
Zins, A., & Weill, L. (2016). The determinants of financial inclusion in Africa. Review of Development Finance, 6(1), 46–57. https://doi.org/https://dx.doi.org/10.1016/j.rdf.2016.05.001.
Views:
142
Downloads:
87
Copyright (c) 2023 Rachmat Dimas Pratomo, Dwini Handayani
This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles are published in open-access and licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). Hence, authors retain copyright to the content of the articles.
CC BY 4.0 License allows content to be copied, adapted, displayed, distributed, re-published or otherwise re-used for any purpose including for adaptation and commercial use provided the content is attributed.
