THE IMPLEMENTATION OF FINANCIAL TECHNOLOGY IN DIGITAL INVESTMENT APPLICATIONS FOR THE CITIZENS OF INDONESIA

Abstract

This study aims to analyse the factors influencing the adoption of online investment applications among millennials in Indonesia, particularly in the Banten, West Java, and Greater Jakarta regions. It applies the Unified Theory of Acceptance and Use of Technology (UTAUT) framework, extended by two additional variables, trust and perceived risk, to capture the behavioural and psychological dimensions of digital investment adoption. This is an explanatory study employing a quantitative approach and cross-sectional survey data collected through a structured questionnaire. A total of 145 respondents, all active users of online investment applications registered with the Financial Services Authority (OJK), were selected as the research sample. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that perceived risk and facilitating conditions significantly influence the intention to use online investment applications. In contrast, performance expectancy, effort expectancy, social influence, and trust were not found to have a significant effect in this context. These findings indicate that perceived risk and technological readiness play a more dominant role than the traditional UTAUT factors in shaping the digital investment behaviours of millennials in Indonesia. This study contributes to the development of the UTAUT model by incorporating psychological variables and offers practical implications for fintech providers and policymakers seeking to increase the adoption of digital investment applications through improved risk management and stronger system infrastructure.