Fintech Innovation and Financial Inclusion: A Rural Malaysian Perspective

Abstract

This study investigates the role of fintech innovation in promoting financial inclusion among rural Malaysian populations. Using the Technology Acceptance Model (TAM) framework, the study examines how digital payment adoption, access to fintech credit solutions, and digital literacy influence behavioural intention to use fintech services, with perceived usefulness as a mediating variable. A quantitative approach was employed to analyse 330 valid responses from rural areas across Perak, rural Selangor, and Kelantan. Statistical analysis using SPSS and PLS-SEM revealed strong positive correlations between all independent variables and behavioural intention, with perceived usefulness demonstrating exceptional mediation effects. The model explains 78.8% of the variance in behavioural intention, exceeding typical technology acceptance studies. The findings indicate that successful fintech implementation in rural areas requires strategic focus on demonstrating tangible benefits, enhancing digital literacy, and establishing a robust payment infrastructure as gateway services. The study provides actionable insights for policymakers, financial institutions, and fintech developers seeking to enhance rural financial inclusion through technology-enabled solutions.