Article

Structural Equation Modelling of User Trust, AI-Driven FinTech Services, and Financial Inclusion in the Digital Economy

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Abstract

The rapid diffusion of Artificial Intelligence (AI) in Financial Technology (FinTech) has redefined the mechanisms through which financial services are delivered and accessed in the digital economy. While AI-driven FinTech services are widely promoted as enablers of financial inclusion, empirical evidence explaining how these technologies translate into inclusive outcomes remains limited, particularly with respect to the role of user trust. This study investigates the structural relationships among AI-driven FinTech services, user trust, and financial inclusion using a Structural Equation Modelling (SEM) approach.

Based on survey data collected from active users of AI-enabled FinTech platforms, the measurement model demonstrates strong reliability and convergent validity, with all constructs achieving Composite Reliability values above 0.85 and Average Variance Extracted values exceeding 0.60. Structural analysis reveals that AI-driven FinTech services have a significant positive effect on user trust (β = 0.62, p < 0.001) and a direct positive effect on financial inclusion (β = 0.18, p < 0.05). User trust, in turn, exerts a substantial influence on financial inclusion (β = 0.55, p < 0.001), confirming its critical role in shaping inclusive financial engagement.

Mediation analysis further indicates that user trust partially mediates the relationship between AI-driven FinTech services and financial inclusion, with the indirect effect (β = 0.34) exceeding the magnitude of the direct effect. These findings demonstrate that the inclusionary impact of AI-driven FinTech services is predominantly transmitted through trust formation rather than technological capability alone. The study contributes to FinTech and digital inclusion literature by empirically establishing a trust-centered causal pathway and highlights the importance of transparent, reliable, and user-oriented AI governance for achieving sustainable financial inclusion in the digital economy.

 

Keywords: Artificial Intelligence, Financial Technology, User Trust, Financial Inclusion, Structural Equation Modelling, Digital Economy

How to Cite:

Sarmini, , Widiawati, C. R. & Yunita, I. R., (2025) “Structural Equation Modelling of User Trust, AI-Driven FinTech Services, and Financial Inclusion in the Digital Economy”, FinTech Innovation Journal 1(1), 38-57. doi: https://doi.org/10.63913/ftij.v1i1.80