FINANCIAL LITERACY, RISK TOLERANCE, AND FINTECH ADOPTION AMONG STUDENTS IN FOUR STATE UNIVERSITIES IN PADANG CITY, INDONESIA

Abstract

This study aims to examine the relationship between the students’ level of financial literacy and risk tolerance, and how this relationship then influence their behavior toward Fintech adoption. To attain those objectives, this study conducted online survey using google form to more than 495 students in four state university located in Padang City, West Sumatera. In addition to a simple descriptive analysis, the survey results are processed and analyzed using PLS Smart3.0 with two-step methods, namely the measurement and structural model to test the study’s hypothesis. This research found that in general, the level of financial literacy among the students in the four state universities in Padang City is quite sufficiently literate. The majority of students tend to avoid risks or risk averse and this might relate to their low level of financial literacy and they tend to use more the types of fintech that is more familiar and less risky, i.e. digital payment. Based on the PLS analysis, meanwhile, this study shows that among the proposed demographic factors, only gender that significantly affects respondents’ risks tolerance. However, the level of financial literacy is directly and significantly influencing the fintech adoption.

Keywords: Student’s Financial Literacy, Risk Tolerance, Fintech Adoption, Financial Technology