User Perception of the Implementation of Digital Identity Solutions in Improving the Security of Digital Financial Transactions

This study investigates the user needs, perceptions, and challenges in digital identity solutions for enhancing financial transactions security. Data breaches, illegal access, and phishing attempts are just a few of the serious security issues brought about by the financial industry's rapid adoption of digital technology. For data analysis and hypothesis testing, the study uses Structural Equation Modeling (SEM) with SMART PLS 4.0. Purposive sampling technique was used to gather information from people who had used secure digital identity systems in financial transactions. Perceived Usefulness, Perceived Ease of Use, Trust, Digital Financial Literacy, Security and Privacy Concerns, and Continuance Use Intention are among the eight variables that are examined in this study. To determine how these variables relate to one another, the study also tests fifteen hypotheses. Twelve of the hypotheses tested were found to be statistically significant, while three relationships did not show any significant correlation: Perceived Usefulness and Trust (p = 0.158), Digital Financial Literacy and Security and Privacy Concerns (p = 0.060), and Security and Privacy Concerns and Continuance Use Intention (p = 0.107). These findings point to important gaps in long-term adoption of digital identity solutions, user trust, and digital financial literacy. This study offers significant perspectives for those involved in financial technology by highlighting the significance of user-centered design, efficient authentication procedures, and education strategies to raise user knowledge of digital identity security. The results offer a basis for enhancing adoption and confidence in digital identity systems, guaranteeing a safe and convenient financial transaction experience.