Factors That Influence the Intention to Use Alternative Finance Fintech: An Application of Structural Equation Model to The Case of Small Service Sector Businesses in Metropolitan Lima

Abstract

This paper applies structural equation modeling (SEM) to comprehensively investigate the core determinants influencing the behavioral intention to adopt alternative financing mechanisms, with a specific, targeted focus on Micro, Small, and Medium-sized Enterprises (MSMEs). The central objective of this research is to identify, isolate, and rigorously measure the specific latent variables that explain and predict MSMEs’ intention to utilize modern Fintech-based financing platforms. Drawing theoretically upon the Technology Acceptance Model (TAM), the study deeply highlights the critical relevance of perceived usefulness, which is formally defined here as the degree to which individual firms value alternative financial technologies as highly effective tools for strategic investment and long-term business growth. The resulting empirical findings strongly suggest that the widespread adoption of Fintech financing is primarily driven by MSMEs’ recognition of its immense potential to rapidly enhance liquidity, expand access to formal credit, and overcome long-standing structural barriers to traditional institutional financing. By directly linking behavioral intention with technological acceptance within the financial domain, this paper contributes a valuable dual perspective to a better, more nuanced understanding of Fintech adoption pathways across developing economies. Ultimately, these insights offer actionable conclusions for both macroeconomic policymakers and financial institutions seeking to foster greater financial inclusion, optimize regulatory frameworks, and design supportive digital ecosystems for vulnerable business sectors.