Digital platform dynamics: exploring the paradoxical role of financial literacy in crowdlending adoption

Purpose Although crowdlending has expanded rapidly, limited research examines the factors shaping user engagement beyond platform trust. Our study investigates how technological features, individual characteristics and financial literacy (FL) influence participation in Indonesia's emerging market context. Design/methodology/approach We analyzed survey data from 254 participants using 2 ordinal regression models. Model 1 assessed functional affordance (FA), technological affordance (TA), social influence (SI), personal factors (PF) and FL; Model 2 added demographic and usage controls. Findings FA and TA, SI and PF positively affected engagement, while higher FL, education and income predicted lower participation. Age, gender, occupation and usage duration were non-significant. Originality/value By examining engagement determinants through affordance theory, our study advances understanding of crowdlending dynamics and challenges conventional assumptions about FL's role in financial inclusion.