An Assessment of Level of Adoption of Fintech in Islamic Banks in the MENA Region

Hassan, M. Kabir; Al-Mohamed, Somar; Rabbani, Mustafa Raza; Jreisat, Ammar

doi:10.1007/978-3-031-14941-2_11

Cited by 2 publications

(1 citation statement)

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“…Nevertheless, there are scarce references to Islamic Paytech in the academic literature. In recent years, numerous studies have considered Fintech adoption within Islamic Finance services providers from different countries, such as Saudi Arabia, the UAE, Malaysia, Bahrain, Brunei, Indonesia, Oman and others (Hudaefi et al, 2023;Hassan et al, 2022aHassan et al, , 2022bHassan et al, , 2022cHassan et al, , 2022dBanna et al, 2021;Shaikh et al, 2020). The place (a country or region) where the consumers live and different regulations or economic stages exist is an essential factor in understanding consumers' behavior in mobile payment adoption (Liu et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Predicting the intention to use Paytech services by Islamic banking users

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Albort-Morant

Oliver-Alfonso

et al. 2023

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Purpose This study aims to identify the factors that could explain the intention to use Paytech services within an Islamic banking context. The authors use an extended version of the technology acceptance model to develop a causal–predictive analysis. Design/methodology/approach The research model and hypotheses were tested by applying partial least square-structured equation modeling to data collected from 214 users of Islamic banking in Saudi Arabia. Findings The results show that perceived trust has a highly significant direct effect on the intention to use Islamic Paytech services, whereas perceived risk has a significant indirect effect on IU. Research limitations/implications Internet banking behavior may not be static. In technology acceptance, during the various phases from introduction to the maturity phase, the respondent’s perceptions tend to change Practical implications From the point of view of Fintech services providers, the knowledge of the factors fostering the adoption of Fintech services would allow an international expansion without the inconvenience of establishing offices or companies in countries whose legislation does not favor the operations carried out by Islamic banks. Social implications These digital payment services would allow access to financial services to the entire Muslim population regardless of their location (Islamic and non-Islamic nations) and will also reach out to the next generation of young Muslims as a majority are “digital natives” ready for digital Islamic financial solutions. Originality/value This study is the first to explore the intention to use Paytech services by Islamic banking users in Saudi Arabia. From a theoretical perspective, this work contributes to the academic literature by analyzing the intention to use Paytech services in an Islamic banking context. On the practical front, the study identifies the crucial factors that industry players can use to design their Paytech applications and services to increase financial inclusion in Saudi Arabia and other countries with similar cultures as well as to design an international expansion without the inconvenience of establishing offices or companies in countries whose legislation does not favor the operations carried out by Islamic banks.

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