Transekonomika: Akuntansi.
Bisnis dan Keuangan https://transpublika.
id/ojs/index.
php/Transekonomika Online ISSN 2809-6851 | Print ISSN 2809-7866 Investor Preferences in Choosing Digital Investment Applications:
A Study on Banking and Non-Banking Securities Platforms Original Article https://doi.
org/10.
55047/transekonomika.
Novita Juni Astutik1*.
Rahmat Setiawan2 1,2Faculty of Economics and Business.
Universitas Airlangga.
Indonesia Email: .
astutik-2023@feb.
id, .
rahmatsetiawan@feb.
Received : 26 April - 2025 Accepted : 12 August - 2025 Published online : 14 August - 2025 Abstract The digital transformation has reshaped IndonesiaAos retail investment landscape through the emergence of digital investment applications from both banking and non-banking institutions.
Despite the growing adoption of such platforms, user preferences toward different types of applications remain underexplored.
This study aims to examine the factors influencing user preferences in selecting digital investment applications, by comparing banking and non-banking securities platforms.
A quantitative approach was employed, involving 124 active users of digital investment apps selected through purposive sampling.
Five key variables were analyzed: ease of use, trust in technology, institutional trust, perceived financial benefit, and social influence.
Data were analyzed using descriptive statistics and binary logistic regression.
The findings reveal that most users prefer non-banking Among the analyzed variables, institutional trust emerged as the most significant predictor of user These findings suggest that digital investment platforms should focus not only on enhancing technological features, but also on strengthening institutional reputation and building user trust.
These findings suggest the importance of incorporating institutional trust in the development of technology adoption models in the digital finance sector.
Practically, app developers need to prioritize building institutional reputation and user trust, in addition to enhancing technological features.
Keywords: Banking Securities.
Digital Investment Apps.
Institutional Trust.
Non-Banking Securities.
User Preference.
Introduction The development of digital technology, particularly the internet and mobile devices, has brought significant changes to various business sectors, including the financial services sector.
This digital transformation has not only changed how consumers access financial products and services, but has also given birth to new business models that challenge conventional systems (Arner et al.
, 2.
One concrete manifestation of this transformation is the emergence of financial technology .
that has revolutionized the global financial system through digital-based services that are fast, efficient, and easily accessible to various groups (Philippon, 2019.
Putri & Widyaningsih, 2.
In Indonesia, digitalization has also driven significant growth in the capital market, particularly in terms of the number of retail investors.
If in 2018 the number of new investors was recorded at 1.
6 million, then in 2023 this number jumped to more than 12 million investors (OJK, 2.
This surge is inseparable from the presence of various digital investment platforms such as Bibit.
Ajaib.
IPOT, and Stockbit, as well as banking-owned Copyright: A 2025 by the authors.
This is an open access article distributed under the terms and conditions of the CC BY 4.
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investment applications such as BRIGHTS.
MOST.
BEST, and BIONS that offer ease of access and innovative features (Wijaya, 2.
However, despite the increasingly widespread adoption of digital investment technology, investor preferences for the platforms used show diverse tendencies.
Some investors prefer bank-owned applications because they are considered safer under the umbrella of large financial institutions.
Conversely, others are attracted to non-bank platforms that are considered more user-friendly, low-cost, and rich in technology-based features (Tandio & Widanaputra, 2.
This phenomenon reflects the dynamics of user behavior in choosing digital investment applications.
The digital transformation in IndonesiaAos capital market is also reflected in the improvement of various key indicators.
Based on data from the Financial Services Authority (OJK, 2.
, between 2018 and 2023, the Composite Stock Price Index (IHSG) rose from 6,194.
50 to 6,707.
market capitalization increased from Rp7,023.
50 trillion to Rp9,521.
and the number of issuers increased from 619 to 864 companies.
Most notably, the number of investors jumped from 1.
6 million to more than 12 million, with average daily transaction value increasing from Rp8.
5 trillion to more than Rp10.
3 trillion and daily transaction frequency tripling from around 390 thousand to 1.
2 million transactions.
The increase in these indicators reflects the increasing ease of access and growing public interest in digital investment.
However, on the other hand, this phenomenon also raises questions about investor behavior dynamics, particularly regarding preferences for digital investment platforms.
A number of previous studies have discussed fintech development and capital market digitalization (Bakhri, 2018.
Philippon, 2.
, but not many have specifically examined the factors that influence investor preferences in choosing digital investment platforms, especially in the context of comparing bank-owned and non-bank platforms.
However, understanding these preferences is essential for service providers in formulating more targeted strategies to remain competitive in the digital era.
Putri & Widyaningsih .
Setiawan et al .
found that the innovative character of users is a major factor in driving fintech adoption in Indonesia, particularly among young generations who have a high tendency to explore new technologies.
Firmansyah et al.
emphasized that perceptions of usefulness, ease of use, trust, and security are the main determinants in usersAo decisions to adopt fintech services, although the context is still limited to noninvestment services.
Additionally.
Pertiwi et al.
showed that trust in platforms greatly influences usersAo intentions to utilize PayLater-based fintech services.
These findings strengthen the assumption that trust in digital service providers is crucial in building user However, not many studies have explored similar factors in the context of digital investment in capital markets, especially regarding comparisons between bank-owned and non-bank platforms.
Despite numerous studies discussing the adoption of fintech and financial services digitalization, there is still a limited amount of empirical research that specifically highlights user preferences in the context of digital investment applications in Indonesia.
Previous studies have mostly been general and focused more on non-investment fintech services such as digital wallets, digital banking, or PayLater systems (Firmansyah et al.
, 2022.
Pertiwi et al.
, without considering the unique characteristics and user expectations in selecting a capital market investment platform.
Furthermore, in-depth comparative studies examining factors of trust and investor behavior in choosing between bank-owned and non-bank platforms are also rare.
This gap is becoming increasingly urgent to investigate considering the significant increase in retail investors in Indonesia, where trust, risk perception, and institutional credibility are crucial factors in determining platform choices.
Hence.
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understanding user preferences more specifically in this context is not only academically important but also practically relevant for platform developers and regulators in formulating strategies to increase trust and mitigate risks in the increasingly complex digital investment Based on this description, this research aims to identify and analyze the main factors that influence user preferences in choosing digital investment applications, with a focus on comparing bank-owned and non-bank securities platforms.
The results of this research are expected to provide scientific contributions to the literature on digital financial services marketing, while serving as strategic input for financial industry players in increasing trust and loyalty among retail investors in Indonesia.
Literature Review Review of Theory and Related Research on Adoption of Digital Investment Applications Through the Technology Acceptance Model (TAM), perceived ease of use is one of the main factors in technology adoption.
The easier an application is to use, the more likely individuals are to adopt it.
In the context of digital investment applications, ease of navigation, user-friendly interface, and simple transaction processes are the main factors in choosing an investment platform (Maruping et al.
, 2.
Pangarso & Riyanti .
shows that ease of use increases user trust in digital investment applications, because users feel more comfortable in making transactions and accessing market information without technical constraints.
Lu et al.
found that applications with responsive design, high accessibility .
obile & deskto.
, and fast registration and transaction processes are more easily adopted by retail investors.
Negara & Febrianto .
also emphasized that applications with simple features and stable systems are preferred over applications with complex features that are difficult to use.
Saxena & Sharma .
in their research found that factors such as user awareness of investment applications, benefits provided, data security, and financial literacy are important elements in the adoption of digital investment applications.
Investors tend to prefer platforms that are secure, transparent, easy to use, and offer lower transaction costs.
The study also concluded that investors who are more tech-savvy and self-reliant are quicker to adapt to investment apps than those who still rely on traditional intermediaries.
Unified Theory of Acceptance and Use of Technology (UTAUT) which explains that social influence plays a role in the adoption of digital applications (Dwivedi et al.
, 2.
Individuals tend to be encouraged to use an application if they get recommendations from friends, family, or the investment community.
Research by Saxena & Sharma .
also shows that emotional and social factors play an important role in investment decisions, especially for millennials and Gen Z.
Investors tend to consider aspects of comfort in using technology and trust in digital platforms, which ultimately affect their decision-making patterns (Putri & Triputrajaya, 2.
Prasarry et al.
in their study also found that social influence is the main factor that predicts the behavioral intention of Generation Y and Z in using digital investment as their main transaction platform.
The greater the influence of the environment on individuals in using new technology, the higher the individualAos interest in adopting it (Yahia et al.
, 2.
Strong social factors, including trends in the use of applications in friendship and community environments, encourage decisions to use information technology in digital investment.
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Planned Behavior Theory explains that individual intentions in using a technology are influenced by attitudes towards technology, subjective norms, and perceived behavioral In research conducted by Hanif et al.
and Pangarso & Riyanti .
, it was found that factors such as trust in digital investment technology, social influence from the investor community, and risk perceptions related to data security play an important role in shaping investor preferences for certain applications.
Investors who feel that digital investment apps have strong data protection and security systems are more likely to use them than platforms that are perceived to have high risks.
In addition to technological and social factors, trust in institutions also plays an important role in the selection of digital investment apps.
Institution-Based Trust Theory explains that trust in an application depends not only on the technological features offered, but also on the reputation and credibility of the institution that manages the technology.
The study of Johri et al.
found that users are more likely to adopt investment applications from institutions that have high credibility, such as banks or large securities companies, compared to fintech startups that are still developing.
Investors have more confidence in platforms that have strict regulations and are supervised by the OJK and IDX.
In Perceived Organizational Trust Theory, trust in financial institutions is influenced by competence, goodwill, and integrity.
That users are more likely to choose financial services from companies that are widely recognized and have a long track record (Clemons et al.
, 2.
so investors who already have a relationship with a bank are more likely to use the bankAos securities application than non-banking investment platforms.
From an economic perspective.
Cost-Benefit Analysis states that individuals will choose technologies that offer greater financial benefits than costs.
Research by Wardana et al.
and Yan et al.
found that novice investors are more likely to choose applications with low transaction costs to maximize their profits.
Digital investment advisors are able to reduce transaction costs compared to conventional brokers, so investors prefer technology-based investment applications compared to traditional investment methods (Yahia et al.
, 2.
Financial Behavior Theory asserts that investors have loss aversion tendencies, where they tend to avoid applications with high transaction costs to minimize the risk of losing capital due to large fees.
In addition, there are differences in preferences based on age, income, and level of investment experience, which influence how individuals choose a platform that suits their needs.
Perceived Ease of Use Perceived ease of use (PEOU) is one of the essential variables in the technology acceptance model (TAM) that explains how much users feel that using a particular system will be free from excessive effort.
Qamar & Ullah .
found that ease of use is a dominant factor in the adoption of digital financial applications, especially among young users who are familiar with technology.
However, in the Indonesian context, different findings were found by Slamet et al.
who noted that although investment apps are considered easy to use, it does not necessarily increase investors' preference to invest digitally.
This difference may be due to the uneven financial and digital literacy in Indonesia, where investors still need interpersonal guidance or trust to decide.
Investigation by Yosefanita et al.
on users of the Bibit and Ajaib applications in Indonesia found that the simple interface and auto-risk assessment feature did increase perceived ease, but the effect was stronger on novice investors than experienced investors.
This shows that PEOU does not always have a significant impact on all market segments and must be analyzed segmentally.
Thus.
PEOU as a predictor of user preference needs to be studied contextually based on the type of investor and their digital literacy.
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Trust Trust is a key determinants in the adoption of digital financial services.
Oesterreich et .
shed light that trust is a strong mediator in the relationship between perceived usefulness and behavioral intention to use.
In Indonesia, the trust factor is even more crucial due to the low literacy of personal data protection and uncertainty over the legality of nonbank platforms.
Judijanto et al.
uncover that investors are more likely to trust applications under the auspices of conventional banking due to associations with institutions directly supervised by OJK and LPS.
In contrast, non-bank applications such as Ajaib and Pluang still face challenges building trust, despite having educational features and user-friendly UI.
This is in contrast to a study by D.
Nair & Sudhakar .
which shows that trust in non-bank platforms can be built through digital reputation and user reviews, suggesting differences in perceptions between countries.
As such, trust in the Indonesian context is strongly influenced by institutional trust and formal authority, not just user experience.
Technology-based trust approaches alone .
encryption or secure UI) are insufficient if they are not accompanied by legal legitimacy and guarantees from supervisory authorities.
Financial Benefit Financial benefits are also one of the main reasons investors choose digital investment Non-bank apps often offer low transaction fees, wider asset diversification, and attractive cashback promotions.
However, according to a study by Laksana and Prasetyo .
, the perception of financial benefits does not necessarily directly affect usage They found that financial benefits are only significant if accompanied by trust.
This means that even though an app offers higher returns, investors are still reluctant to switch if trust in the app is low.
Recent research by Azka et al.
discover that Indonesian investors actually tend to prefer platforms with fee transparency and are less tempted by the lure of high returns, due to concerns about the risk of fraud.
This strengthens the argument that economic rationality factors should be analyzed along with psychological and socio-cultural dimensions in the Indonesian context.
This difference suggests that financial benefits are not the only attraction.
Investor decisions are also influenced by trust in regulation and platform reputation, as well as perceptions of risk, which are often higher in non-bank applications as they are perceived to be less institutionally secure.
Risk Perception and Regulatory Concerns Perceived risk is a significant barrier to the adoption of digital investment applications.
In an analysis by Neves et al.
, perceived risks relate to data security, potential financial loss, and legal clarity.
Pambudi et al.
highlighted that the biggest risk according to investors' perception is the lack of understanding of investment features and the unclear regulation of non-bank platforms, despite being registered with OJK.
In contrast to developed countries, where the level of trust in digital service providers is higher due to a clear and protected legal framework.
Indonesian investors are still hesitant.
Therefore, public policy approaches and public education are needed to reduce risk aversion towards non-bank applications that are technologically competitive.
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Methods This research uses a quantitative approach to answer the established problem Primary data was obtained through online questionnaire distribution to respondents who are active users of digital investment applications.
Variable measurement was This research employs a quantitative approach to answer the established research Primary data were collected through an online questionnaire distributed to respondents who are active users of digital investment applications.
In this study, active users are defined as individuals who have used online stock investment applications for a minimum of three months and have conducted at least one transaction per month during that period.
This definition was applied during the initial screening process to ensure that only respondents with consistent usage patterns and direct user experience were included.
Variable measurement was conducted using a four-point Likert scale, with values ranging from 1 .
trongly disagre.
to 4 .
trongly agre.
, to avoid neutral bias and encourage more decisive responses.
The questionnaire consisted of 14 items representing the measured Sampling was carried out using a purposive sampling technique, with the main inclusion criterion being active usage of online stock investment platforms such as Bibit.
Ajaib.
Pluang, and those under conventional banks like BCA Sekuritas or Mandiri Sekuritas.
The use of purposive sampling was intended to ensure that participants possess adequate familiarity and experience with the platforms being evaluated, enabling them to provide relevant and accurate Additionally, demographic diversity .
ge, gender, education leve.
and length of platform usage were also considered to reduce sampling bias.
The final number of respondents in this study is 124.
This figure aligns with Hair et al.
, who recommend a sample size of 5 to 10 times the number of research indicators.
With 14 indicators in total, the ideal sample size ranges from 70 to 140 respondents, thereby validating the adequacy of the sample size for further analysis.
To ensure the instrumentAos psychometric robustness, both validity and reliability tests were conducted prior to hypothesis testing.
The validity test involved Pearson correlation analysis, in which each questionnaire item was assessed for its correlation with the total score of its respective variable.
All items yielded significant correlations at p < 0.
05, indicating that they accurately measured the intended constructs.
The reliability test was conducted using CronbachAos Alpha, with results showing values above 0.
70 for all variables, signifying acceptable internal consistency.
Hence, the instrument used in this study is deemed both valid and reliable for measuring investor preferences in digital investment applications.
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Results and Discussion Research Results Descriptive Analysis Results The characteristics of respondents analyzed in this study include age, income and length of experience in making stock investments.
Age Range 20-29 years old 30-39 years old >40 years old Total Table 1.
Respondents Age Total Percentage 29,8% 60,5% 9,7% Table 1 shows that the dominant respondents in this study were aged 18-35 years.
This shows that the majority of respondents in this study belong to the millennial generation, namely individuals born between 1981 and 1996 (Dimock, 2.
The dominance of this age group provides a context that the preference for the use of digital investment applications in this study is largely influenced by the digital behavioral characteristics of the millennial generation, which is known to be adaptive to technology and active in the use of digital financial services.
Table 2.
Income Per Month Income Per Month Total <Rp.
000,14
Rp.
000,- s/d Rp.
000,61
Rp.
0000,- s/d Rp.
000,25
>Rp.
000,24
Percentage 11,3% 49,2% 20,2% 19,4% Based on Table 2, the majority of respondents in this study have a monthly income between Rp 5,000,000 to Rp 10,000,000 .
2%), which indicates that most respondents are in the middle income category.
This finding is in line with (Wang et al.
, 2.
research which states that income level has a relationship with individual interest in investment activities, where individuals with higher income tend to have a greater interest in financial products, including digital investment.
Table 3.
Length of Experience in Making Stock Investments Length of Experience Total Percentage <1 years 1-3 years 30,6% 3-5 years >5 years 19,4% Table 3 shows that the majority of respondents have between 1-3 years of stock investment experience .
6%) and less than 1 year .
%).
This means that most respondents belong to the beginner to semi-experienced investor group.
This is in line with the findings of Kasih et al.
who stated that the level of investment experience is related to the pattern of using digital platforms, where novice investors tend to be more open to investment applications that offer simple interfaces, usage guides, and educational features.
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In addition.
Firmansyah et al.
also mentioned that investment experience is one of the factors that influence preferences in choosing an investment platform, because it is directly related to the level of comfort, trust, and risk perception in using digital applications for investment activities.
Usage of Digital Investment Applications Figure 1.
Distribution of the Use of Digital Investment Applications by Respondents Source: Processed questionnaire data, 2025 The figure 1 shows the distribution of digital investment apps used by respondents.
The data shows that IPOT .
8%).
Stockbit .
4%) and Bibit .
6%) are the three most used platforms, followed by MOST .
5%).
BRIGHTS .
7%) and BIONS .
9%).
As one respondent was allowed to select more than one app, the total number of selections exceeded the number of respondents.
This data indicates that respondents tend to use more than one investment platform, which could be related to a preference for specific features in each In accordance with the findings of (Rahmayanti et al.
, 2.
, retail investors in Indonesia tend to try several apps before deciding on the main app that suits their preferences.
In addition, (P.
Nair et al.
, 2.
mentioned that the tendency to use multiple applications can be attributed to the need to compare transaction costs, ease of use, and convenience of application navigation.
Figure 2.
Primary Reasons for RespondentsAo Utilization of Digital Investment Applications Source: Processed questionnaire data, 2025 Novita Juni Astutik et al.
| Volume 5 No.
The figure 2 shows the main reasons that encourage respondents to choose and use digital investment applications.
The most common reason is easy to use .
6%) which represents the Perceived Ease of Use variable, followed by high security .
5%) which is related to the Trust in Technology variable, and complete and advanced features .
which is also part of Perceived Ease of Use as it relates to ease of access and convenience of Other reasons that emerged were low transaction fees .
%) and many promos or cashback programs .
%), both of which reflect perceptions of Perceived Financial Benefit.
addition, recommendations from friends or family .
6%) are in accordance with the Social Influence variable, which indicates the role of the social environment in influencing the selection of investment applications.
This finding is comparable with Alalwan et al.
which emphasizes the importance of perceived ease of use, trust, and financial benefits in the adoption of technology-based financial services.
UTAUT model also emphasized that social influence is a significant predictor of digital technology use (Dwivedi et al.
, 2.
This study involved 124 respondents who are active users of digital investment applications, consisting of banking .
2%) and non-banking .
8%) securities application Descriptive analysis of the five independent variables shows that all variables have an average score above 2.
90, which falls into the AuHighAy to AuVery HighAy category.
The analysis was conducted by comparing the descriptive results between banking and non-banking securities application users.
The following table 4 is a comparison of the average score of each variable from both groups:
Comparative Analysis of Banking vs.
Non-Banking Applications Table 4.
Comparison of the Average Score of Each Variable from Both Groups Average Banking Average Non-Banking Variable User
User
Perceived Ease of Use 3,20 3,34 Trust in Technology 3,23 3,21 Institutional Trust
3,01
3,17
Perceived Financial Benefit
3,02
3,06
Social Influence 2,98 3,09 Based on the table 4 above, it can be seen that non-banking digital investment application users have higher average scores on almost all variables compared to banking securities application users.
The highest score difference is in the Perceived Ease of Use variable, which is 3.
34 for non-banking users and 3.
20 for banking users.
This finding shows that non-banking applications are considered easier to use, have a more intuitive interface, and a more practical registration and transaction process.
This is in line with the indicators on this variable which previously obtained the AuVery HighAy category in the descriptive results.
In addition, the Institutional Trust variable also showed a notable difference, where the score of non-banking users reached 3.
17, while banking users amounted to 3.
Although banking institutions generally have a strong formal reputation, in the digital context, users perceive non-banking institutions as more credible and innovative.
This finding is relevant to the previous item-by-item results, where respondents gave high scores to the indicators Auwellknown institutionsAy and Aumore innovative non-banking applicationsAy.
For the Trust in Technology variable, the difference between the two groups is relatively small .
23 in banking and 3.
21 in non-bankin.
, indicating that both types of applications are Novita Juni Astutik et al.
| Volume 5 No.
rated equally in terms of technological reliability, personal data security, and lack of technical On the Perceived Financial Benefit variable, non-banking users again show higher scores .
than banking .
, although the difference is slight.
This suggests that nonbanking apps are better able to provide perceived financial benefits, such as lower transaction fees and attractive promos, as also reflected in the graph of respondentsAo main reasons for choosing apps.
Finally, on the Social Influence variable, non-banking users also show a higher score .
than banking .
This suggests that social influences, such as recommendations from friends, family or digital investment community trends, are more strongly felt by nonbanking app users.
Overall, the results of this comparison reinforce previous findings that the majority of respondents in this study prefer to use non-banking apps.
This preference is not only influenced by technical aspects, but also by perceptions of institutions, financial benefits, and social factors that contribute to the adoption of digital investment apps.
Discussion The results of this study show that the majority of respondents choose to use nonbanking digital investment applications .
8%) over banking securities applications .
2%).
This indicates a shift in user preferences towards investment platforms that are considered more practical, modern and responsive to the needs of retail investors.
A comparison of the average scores of the five variables between banking and nonbanking app users indicates that non-banking users score higher on almost all variables, particularly on Perceived Ease of Use and Institutional Trust.
This finding supports the Technology Acceptance Model (TAM) theory which emphasizes that ease of use contributes significantly to the decision to use digital applications (Pangarso & Riyanti, 2.
Although banks are generally regarded as trusted institutions, the results of this study actually show that users of non-banking applications have higher trust scores for the institutions that provide these applications.
This is in line with the findings of Johri & Kumar .
and Zhang et al.
, which explain that trust in institutions is not only determined by formal status such as AubankAy, but also by user experience, feature innovation, and the services offered.
This finding is quite surprising, considering that banks in Indonesia are still symbols of official financial institutions that are strictly supervised by OJK.
However, non-bank applications such as Bibit and Ajaib actually obtained higher institutional trust scores.
This shows that public perception of authority does not solely stem from legal status, but also from pleasant digital experiences, easy registration processes, and marketing approaches that are close to young generation lifestyles.
In the Indonesian context, where financial literacy is still developing, this shift in trust indicates the need for evaluation of conventional banksAo approaches in reaching young retail investors.
Interestingly, the findings reveal a critical trade-off between institutional trust and perceived ease of use.
While traditional banking institutions are generally seen as more credible due to regulatory oversight and brand legacy, the user experience they offer is often perceived as outdated and rigid.
On the other hand, non-bank investment applications despite lacking formal authority status tend to deliver superior ease of use, intuitive design, and faster onboarding processes.
This ease of use not only enhances the user experience but also acts as a proxy for institutional competence in the eyes of younger users.
As a result, perceived ease of use can actually compensate for the absence of traditional trust cues, shifting the user's evaluation of institutional credibility.
This supports recent extensions of TAM and UTAUT, which recognize that usability and user experience can directly affect perceptions of trust and institutional legitimacy (Johri & Kumar, 2023.
Xu, 2.
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The Trust in Technology variable shows an almost equal average score between the two user groups, indicating that both banking and non-banking applications are rated similarly in terms of system reliability and data security.
This is reinforced by the study of Hanif et al.
, which states that young generation investors in Indonesia have a high level of trust in technology and are no longer tied to traditional institutions.
Meanwhile, the scores of Perceived Financial Benefit and Social Influence variables are also higher for non-banking users, although the difference is not too large.
As research by Philippon .
show that novice investors tend to be more interested in platforms that offer low transaction fees, promos, and cashback as financial incentives.
This is also reflected in the questionnaire results which show that 21% of respondents chose the app because of the promo/cashback program, and 29% because of the low transaction fees.
However, the equal scores on Trust in Technology between bank and non-bank applications can be read as an indication that technological superiority is no longer the main differentiator which all application providers have met basic standards of security and reliability.
This means that to attract more users, providers must focus on other added values such as user experience, interface design, and community Based on TAM and UTAUT theories, several variables in this research do not stand alone, but interact with each other.
For instance, high ease of use in non-bank applications can build trust in the institution providing the application, because positive user experiences tend to increase credibility perceptions.
Similarly, promotions and low transaction costs not only increase perceptions of financial benefits, but also strengthen perceptions of system professionalism and efficiency, which impacts Trust in Technology.
Additionally, social influence from online communities and public figure recommendations has been proven to not only drive initial adoption, but also build trust in digital applications that previously did not have formal institutional status like banks (Bian, 2.
In the Indonesian context, young investor communities on social media such as TikTok and YouTube have become dominant mediums in shaping perceptions of applications.
The role of non-formal educators, such as financial influencers and beginner investors, now determines preferences more than formal institutions or regulators.
This needs to be considered in efforts to improve financial literacy, which has so far still heavily relied on formal institutions.
Social influence, particularly in the form of recommendations from friends and family, has proven to play an important role in driving adoption of digital investment applications.
this study, 30.
6% of respondents stated that they knew and used investment applications based on social recommendations.
This finding is consistent with UTAUT theory, which states that social influence is one of the main factors in driving technology adoption, especially among new users.
Applications such as Ajaib.
Bibit, and IPOT are widely known through social media, online communities, and influence from public figures or influencers, showing the power of social influence in shaping technology preferences among younger generations.
This is reinforced by findings from Bian .
, who in their research on federated learning-based recommendation systems stated that algorithms that strengthen community influence and social networks can increase user trust and drive digital application adoption in certain Furthermore, usersAo digital experiences and preferences are also influenced by the forms of communication and narratives offered by applications.
Korobkova .
emphasized that digital users, especially younger generations, are more interested in platforms that reflect their cultural identity and digital literacy.
Non-bank investment applications such as Bibit and Ajaib tend to present experiences that are more casual, communicative, and integrated with digital lifestyles, compared to bank-owned securities applications that are often considered too Novita Juni Astutik et al.
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formal and have complicated registration processes.
This aligns with findings from Xu .
which show that younger age groups prioritize ease of use and application functionality over institutional credibility when making application usage decisions, including in critical contexts such as pandemics.
Demographic data in this research shows that the majority of respondents are aged between 20 to 39 years .
3%) and have investment experience of less than three years .
6%).
This finding reflects the characteristics of millennial and Gen Z generations who are widely identified as groups that are adaptive to digital technology, including in the use of financial and investment applications.
Ahmed .
explains that digital financial applications like Telda are favored by younger generations because they present simple interfaces and transaction features that are easily accessible and understandable.
This shows the importance of developing marketing and financial education strategies that align with the characteristics of this generation not only from the technology side, but also from the aspects of values, communication language, and access speed that they need in making independent financial decisions.
In a similar context.
Hong .
found that this generation has a high level of comfort in using mobile applications as a means of personal decision-making, including in private Research by Park .
, .
also shows that application design that is intuitive and responsive to usersAo emotional and spiritual identity plays an important role in increasing user engagement from younger age groups.
Meanwhile.
Lim .
highlights that personal innovativeness is a sustainable driving factor in digital application usage, especially when the application offers innovation and ease of access.
Prabhavathy .
also affirmed that expectations for ease of use and hedonic motivation are significant determinants in forming application-based technology usage habits among younger generations.
Conversely.
Wang .
found that older generations tend to experience barriers in adopting digital applications, showing a generational gap in technology acceptance.
Based on these findings, it can be concluded that respondent characteristics in this study support the assumption that interest in digital investment applications is more dominantly found in younger age groups who have preferences for technology that is simple, innovative, and easy to operate.
Overall, the findings of this study confirm that user preferences for digital investment applications are highly influenced by institutional credibility, ease of use, and financial benefit value offered.
This aligns with research by Saxena & Sharma .
which shows that investors more consider practical value and convenience in choosing financial applications, compared to the formal status of the providing institution.
Therefore, traditional financial institutions, especially banking, need to develop applications that are more adaptive to the digital habits of younger generations, paying attention to inclusivity aspects, narratives that align with digital ecosystems, and ease of access as key factors in increasing adoption.
However, these results also show that conventional approaches that rely on formal institutional reputation are no longer sufficiently effective in attracting digital investors in Indonesia.
Therefore, traditional financial institutions, particularly banks, need to be more adaptive to the digital ecosystem by developing applications that are not only safe and credible, but also inclusive, easy to use, and have narratives that align with young generation values.
Novita Juni Astutik et al.
| Volume 5 No.
Conclusion Prior studies show that users choose digital investment apps based on technical and perceptual factors.
Research highlights that ease of use and institutional trust are key differentiators between banking and non-banking mobile apps.
Non-banking apps demonstrate higher perceptions of usefulness and credibility compared to bank apps, indicating that users evaluate platforms based on experience quality and provider reputation, not just based on a single factor such as cost or security.
Consequently, banks must make significant improvements, as users in Australia now associate trust with user experience and reliability, rather than solely with traditional banking institutions.
This particularly applies to young generalist users who do not yet have much experience using digital financial services, so they are not yet sure what they should expect.
AuLoyalty is not really related to institutions.
generally, itAos more about first impressions and ease of use,Ay Gassy wrote to CoinDesk via Twitter direct message.
The main findings in this research show that institutional trust becomes the primary predictor in the selection of non-bank apps by young users.
They are more likely to choose apps with high reputations in security and user experience, compared to considering cost factors or institutional affiliation.
Thus, in the current digital revolution of the financial industry, user perception becomes the main driver in preferences and attachment to Both banking and non-banking institutions must take careful paths and present the best user experience to remain relevant.
These findings contribute to the extension of the Technology Acceptance Model by highlighting how institutional trust interacts with perceived ease of use, particularly in financial applications.
It suggests that in the Indonesian context, user loyalty is shifting from institutional assurance to experience-driven factors.
From a practical standpoint, digital investment platforms both bank-based and independent must focus on enhancing user experience and transparent communication to build lasting trust, especially among first-time For academics, the findings offer new insights into how digital-native users perceive trust, which can inform future models of digital financial service adoption in emerging This study is limited to self-reported data from Indonesian users, with a sample predominantly consisting of young digital-native investors.
Future research could explore longitudinal data to assess how trust evolves over time and conduct comparative studies between countries with different financial literacy levels or regulatory environments.
References