Behavioral and Risk Factors in SME FinTech Adoption: Evidence from Indonesian Small Enterprises

The integration of financial technology (FinTech) into small and medium enterprises' (SMEs') financing systems has become a pivotal force in enhancing financial inclusion across developing economies.However, SME adoption remains uneven due to behavioural, technological, and perceived-risk barriers.This study develops a fundamental behavioural-financial model that unites the Theory of Planned Behaviour (TPB), the Technology Acceptance Model (TAM), and Perceived Risk Theory to examine FinTech adoption among Indonesian SMEs.Using a quantitative approach, survey data were collected from 160 SME owners and managers in East Java Province.The analysis employed Partial Least Squares-Structural Equation Modelling (PLS-SEM) to test the relationships among behavioural intentions, technological perceptions, and risk awareness.The results demonstrate that both behavioural constructs (attitude, normative beliefs, and perceived control) and risk perception significantly influence FinTech adoption, while technological acceptance variables exert only an indirect effect.This indicates that the willingness to use FinTech among SMEs is strongly shaped by social norms and trust in financial systems rather than by perceived usefulness alone.The novelty of this research lies in the integration of perceived risk into the TPB-TAM framework, offering a more comprehensive understanding of FinTech behaviour within emerging economies.The proposed model provides an empirical foundation for policymakers and financial institutions to design inclusive, low-risk FinTech ecosystems that foster SME resilience and sustainable economic growth.