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Factors determining behavioral intentions to use Islamic financial technology: Three competing models

Darmansyah (Department of Research in Financial Services Sector, Financial Services Authority of Indonesia, Central Jakarta, Indonesia)
Bayu Arie Fianto (Department of Shari'a Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia and Center of Islamic Social Finance Intelligent (CISFI), Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia)
Achsania Hendratmi (Department of Shari'a Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia and Center of Islamic Social Finance Intelligent (CISFI), Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia)
Primandanu Febriyan Aziz (Department of Research in Financial Services Sector, Financial Services Authority of Indonesia, Central Jakarta, Indonesia)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 9 April 2020

Issue publication date: 12 May 2021

Abstract

Purpose

The purpose of this paper is to investigate the influential factors on behavioral intentions toward Islamic financial technology (FinTech) use in Indonesia, for all types of FinTech services as follows: payments, peer to peer lending and crowdfunding.

Design/methodology/approach

This study adopted structural equation modeling using the partial least squares approach to test the hypotheses. Based on purposive sampling, the questionnaire was distributed through an online survey and received 1,262 responses.

Findings

The results demonstrate that the latent variables, planned behavior, acceptance model and use of technology, have a significant impact on encouraging behavioral intentions to use Islamic FinTech. The “acceptance model” latent variable is the most influential factor.

Research limitations/implications

This study was conducted only in Indonesia; therefore, the results cannot be generalized to other countries. However, the study provides important strategic guidelines for policymakers in designing a framework to enhance the development of Islamic FinTech and to achieve financial inclusion. It is suggested that future studies include samples from FinTech users in different countries.

Originality/value

This study adds to the literature especially on the factors affecting behavioral intentions to use Islamic FinTech. There are limited studies concerning this topic, especially for Indonesia. The unique feature of this study is the use of a large primary data set that covers most provinces in Indonesia. Furthermore, this study focuses on three types of Islamic FinTech, namely, payments, peer to peer lending and crowdfunding.

Keywords

Acknowledgements

This paper is part of the research project on “Factors Determining Behavioural Intentions to Use Islamic Financial Technology” funded by the Otoritas Jasa Keuangan/OJK (Indonesia Financial Services Authority). The views expressed in this paper are the authors’ only and do not necessarily reflect those of Otoritas Jasa Keuangan/OJK. We thank M. Algifari and Jelita S. Rofifa as Research Assistants in the development of this paper. We also thank the anonymous referee, the editor and the panellists and participants at the OJK Working Paper Seminar in Solo in August 2019 for their valuable comments and suggestions on the earlier version of this paper.

Citation

, D., Fianto, B.A., Hendratmi, A. and Aziz, P.F. (2021), "Factors determining behavioral intentions to use Islamic financial technology: Three competing models", Journal of Islamic Marketing, Vol. 12 No. 4, pp. 794-812. https://doi.org/10.1108/JIMA-12-2019-0252

Publisher

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Emerald Publishing Limited

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