Geography-Based Funding and the Fintech Securities Crowdfunding Ecosystem in Indonesia: A Mixed-Method Analysis

Dede Suryanto; Bernardus Yuliarto Nugroho; Nur Fatwa

doi:10.59261/inkubis.v8i3.281

Authors

Dede Suryanto Universitas Indonesia
Bernardus Yuliarto Nugroho Universitas Indonesia
Nur Fatwa Universitas Indonesia

DOI:

https://doi.org/10.59261/inkubis.v8i3.281

Keywords:

Fintech Ecosystem, Funding, Geography, Securities Crowdfunding, Social Network Analysis

Abstract

Background: The Fintech Securities Crowdfunding (SCF) industry in Indonesia has shown rapid growth, yet it faces challenges regarding the uneven distribution of funding access and the maturity of its ecosystem. While funding is a primary driver, the geographical dimension in an archipelago nation remains a critical, under-researched variable.

Objective: This study aims to analyze the influence of Funding on the Fintech SCF Ecosystem and examine the mediating role of Geography in this relationship.

Methods: This research employs a mixed-method approach. The quantitative phase utilizes Structural Equation Modeling-Partial Least Squares (SEM-PLS) to analyze data from SCF investors. The qualitative phase employs Social Network Analysis (SNA) to map the relationships among ecosystem actors.

Results: Quantitative results indicate that Funding has a significant positive effect on the SCF Ecosystem (t-statistic 2.938). Crucially, Geography significantly mediates this relationship (t-statistic 2.269), suggesting that funding effectiveness relies on spatial distribution. SNA results visualize the central role of platforms in bridging geographical gaps between issuers and investors.

Conclusion: A robust SCF ecosystem depends not only on capital volume but on how funding strategies address geographical disparities. This study integrates the functional area of funding with geographical disparity theories within the Fintech Ecosystem framework, offering a novel perspective on "hyper-local" strategies for national inclusivity.

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