Abstract
The stability of economic growth can't be separated from the role of domestic and foreign parties. Therefore, it requires participation from various parties to meet the sources of funding or investment financing in realizing equitable economic development. One source of funds that can boost development in Indonesia is through investment. Through technology, investment can be more easily to be offer to consumer and that kind of technology is digital wallet. This research was to analyze the drive factors of consumer purchase intention of mutual fund through digital wallet platform in Indonesia. Questionnaires and sampling with up to 406 respondents was analyzed by using multiple linear regression analysis. This study shows that perceived usefulness, perceived ease of use, consumer innovativeness, ethical awareness, performance expectancy, privacy concern are driving factors. Furthermore, there are several points that should be enhanced to make all of driving factors more impact to influence consumer purchase intention.
TopIntroduction
In general, the economic system consists of open and closed economic systems. Indonesia is one of the developing countries in Southeast Asia that runs the open economic system and so far, Indonesia is still categorized as a developing country. To maximize the development of a country requires a large capital. One source of capital needed is the capital market. Indonesia experiences a slowdown in economic growth when compared to 2018 (Central Statistics Agency, 2019). This is due to the development of infrastructure which is the current target of leadership (Kevin & Purnomo, 2019). This proves that both domestic and foreign capital injections are still insufficient to boost the economy in Indonesia.
The stability of economic growth cannot be separated from the role of domestic and foreign parties. Therefore, it requires participation from various parties to meet the funding sources or investment financing in realizing equitable economic development in Indonesia. Limited funding is a problem for the development of a country. One source of funds that can boost development in Indonesia is through investment. Some start-up companies in Indonesia get large funds injected by foreign companies, so this can be utilized by the government (AlphaJWCVentures, 2019; Otoritas Jasa Keuangan, 2017; Setyowati, 2019). Some start-ups that are widely used today are fintech (Financial Technology).
Fintech is here to facilitate its users starting from funding, investment, and payment. Until now, several technological developments have changed the way to trade using fintech. Fintech is developing very rapidly in Indonesia this is also due to the emergence of new decacorns and unicorns (Ulya, 2019). According to data released by the Financial Services Authority in Indonesia, there were 127 peers to peer lending platforms registered in August 2019 with a flow of funds reaching IDR 44.8 trillion (Anggraeni, 2019; Otoritas Jasa Keuangan, 2017). Fintech comes in various forms of transactions, so people are slowly starting to switch to using fintech. Fintech comes with a variety of transactions depending on user needs including financial planning, crowdfunding, aggregator, lending and payment (Aaron et al., 2017; Franedya & Bosnia, 2018; Prawirasasra, 2018). Based on the data it is known that payment or digital wallet is the fintech most frequently used. This is utilized well by the OVO as one of the companies engaged in the field of digital wallet and has a feature for mutual fund purchases known as OVO Invest (Hadad, 2017; Otoritas Jasa Keuangan, 2019; Rianto, 2019). OVO Invest offers a variety of mutual funds that invest in shares of stock, fixed income, and money market instruments in Indonesia (Bareksa, 2020).
Sales of investment products will be greatly helped by the presence of buying and selling methods through mobile commerce or e-commerce. This has a positive impact due to the unlimited location and time of the transaction. OVO Invest aims to provide investment convenience through a digital wallet platform that can be done via a smartphone, so investing is easier and more affordable. Some benefits are also given to users in the form of competitive return rates and minimal transactions that are affordable by all groups. This OVO Invest feature is expected to increase interest and interest in starting to invest. With this created product, it is expected to improve the value of Indonesia's investment which is still inferior to other Southeast Asian neighbors.
Key Terms in this Chapter
Financial Technology (FinTech): Is used to describe new tech that seeks to improve and automate the delivery and use of financial services. At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones. Fintech, the word, is a combination of “financial technology.”
Mutual Fund: Is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.
Digital Wallet (or E-Wallet): Is a software-based system that securely stores users' payment information and passwords for numerous payment methods and websites. By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology.