Borrowers’ Adoption of FinTech Lending in Indonesia: An Expanded TAM Approach

This study uses an expanded technology acceptance model (TAM) to analyze the drivers of FinTech lending adoption in the Indonesian market, particularly among borrowers. Building on the foundational TAM constructs of perceived usefulness and ease of use, this research integrates additional factors such as trust, perceived risk, government support, financial health, user innovativeness, and brand image to provide a comprehensive framework for understanding adoption behavior. We created a questionnaire, distributed it to active borrowers of FinTech lending, and obtained 425 valid responses. We employed a structural equation model (SEM) to analyze the data and evaluate the hypotheses, encompassing the relationships among all latent variables. This study emphasizes the attitudes and trust role in mediating the relationship between the latent variable. The study found that perceived usefulness, perceived ease of use, trust, brand image, government support, and user innovativeness actively influence positive attitudes and intention to adopt FinTech lending. Also, trust functions as a mediator with brand image, government support, user innovativeness, and adoption attitudes of borrowers. Such findings point to the importance of trust in acceptance intention and actual use of FinTech services by borrowers. Thus, the results support appropriate guidance for FinTech providers and the government in promoting rational and sustainable expansion of FinTech to advance inclusive financial access in Indonesia. JEL classification numbers: G21, G28, G32, G41, G53. Keywords: FinTech lending, Borrowers, TAM, Trust, SEM.