A Conceptual Framework for a Cross-National Study on Fintech Adoption and Financial Literacy among Students in Malaysia and Indonesia

Abstract

The rapid expansion of financial technology (FinTech) across Southeast Asia is transforming how young consumers interact with financial services. Malaysia and Indonesia, as leading digital economies, present a unique context for examining how youth adopt FinTech platforms such as e-wallets, digital banking, Buy-Now-Pay-Later (BNPL), and investment applications. This conceptual paper develops a theoretical framework grounded in the Technology Adoption Model (TAM), extended with Trust, Perceived Risk, and Financial Literacy as a moderating construct. The framework proposes that Perceived Usefulness, Perceived Ease of Use, Trust, and Perceived Risk influence students’ Behavioural Intention to adopt FinTech services, while Financial Literacy strengthens or weakens these relationships. By comparing two culturally and economically interconnected nations, the model provides a basis for understanding how differences in financial literacy and regulatory environments may shape FinTech adoption among students. The paper contributes theoretically by integrating financial literacy into TAM as a contextual moderator and practically by offering guidance for policymakers, educators, and FinTech providers to enhance financial literacy and responsible digital finance usage among youth. Future research directions are outlined to empirically validate the proposed framework through cross-national comparative analysis.