The Adoption of Sharia Fintech Among Millenial in Indonesia: Moderating Effect of Islamic Financial Literacy on UTAUT 2

Abstract

The development of Islamic Fintech in Indonesia shows promising progress. As of April 2021, there are 146 fintech companies. However, this large number of companies is only able to reach 7% of the total population in Indonesia. This study aims to examine what factors that influence the intention to use Islamic fintech in Indonesia by testing the UTAUT 2 theory developed by Venkatesh with the addition of Islamic Financial Literacy as a moderating variable. Data was collected through an online questionnaire adapted from previous research. 30 data from respondents are collected then tested using the SEM-PLS analysis method with the WarpPLS 7.0 and SPSS 24. The test show that Performance Expectancy (PE), Effort Expectancy (EE), Facilitating Conditions (FC), and Price Value (PV) affect Behavioral Intention (BI) positively and significantly. Furthermore, Social Influence (SI) and Hedonic Motivation (HM) show a positive but not significant effect. Likewise, Islamic Financial Literacy as a moderating variable does not affect the relationship between SI and HM to BI

Adoption of digital payment FinTech service by Gen Y and Gen Z users: evidence from India

“…Initially, Venkatesh et al (2003) in UTAUT 1 proposed that facilitating condition does not have a direct impact on behavioral intention but instead affects actual user behavior which later in UTAUT 2 found that facilitating condition has a strong influence on behavioral intention (Venkatesh et al, 2012). Moreover, prior studies have shown that facilitating condition is strongly related to users' behavioral intentions (Shaw, 2015;Basri, 2018;Merhi et al, 2021;Xie et al, 2021;Mansyur and Engku Ali, 2022;Rahim et al, 2022). Therefore, considering the above discussion, we hypothesize: H4.…”

“…According to Yan et al (2021), consumers tend to use the technology that facilitates them to attain their goals. It is the ease of use of the system, which consequently reduces the time and effort devoted while doing a task (Mansyur and Engku Ali, 2022). However, it mostly affects users' intent initially, while using a technology later, it becomes less crucial as this procedure is substituted by the efficiency of the technology (Rahim et al, 2022).…”

“…While as per Yan et al (2021), performance expectancy signifies the consumers' belief that using technology-abled services will improve their performance and efficiency. Previous researchers have empirically tested and found a strong impact of performance expectancy on users' adoption intention (Shaw, 2015;Basri, 2018;Merhi et al, 2021;Xie et al, 2021;Mansyur and Engku Ali, 2022;Rahim et al, 2022;Bajunaied et al, 2023). Chao (2019) found that performance expectancy had a strong influence on customer satisfaction.…”

“…Islamic financial literacy has been used as a moderator to examine users' behavioral intentions toward Sharia FinTech (Mansyur and Engku Ali, 2022). Financial literacy has also been used as a moderator in the relationship between performance expectancy and usage intention, and effort expectancy and usage intention in the banking context (Chan et al, 2022).…”

Predicting The Intention to Invest in Equity Crowdfunding in Indonesia

“…Ajzen defines perceived behaviour control as the perceived ease or difficulty of carrying out a behaviour based on previous experiences, problems, and preparation of such difficulties (Ajzen, 2005). The availability of financing, details, and facilities used to support investment activities on the Equity Crowdfunding platform is defined as convenience and problems in the context of this research (Mansyur & Ali, 2022). Supporting factors play an essential role in controlling behaviour and vice versa, so if the supporting instrument is hard to fulfil, the more difficult it is to understand a person's behaviour (Ajzen, 2005).…”