The determinants of financial technology adoption amongst Malaysian waqf institutions

Abstract

PurposeThe popularity of financial technology (fintech) is rising in society due to fintech's direct benefits to users. This digital-based approach is one of the outputs of the Industrial Revolution 4.0, which transformed the path of human history and resulted in the development of digital transformation strategy innovation, more commonly referred to as digitalisation. Previous literature has predicted that integrating fintech into waqf management will facilitate fintech's growth and expand waqf outreach in Malaysia. Therefore, this paper aims to examine the impact of “Industry 4.0” on the expansion of fintech into cash waqf in Malaysia.Design/methodology/approachThis study uses Rogers' (2003) diffusion of innovation (DOI) model. In addition, a quantitative approach based on structural equation modelling (SEM) was utilised to analyse the relationship between awareness, knowledge, relative advantage, social norms, perceived trust and fintech adoption in waqf institutions by using the tool Analysis of Moment Structures (AMOS) version 23.0 with maximum likelihood estimation.FindingsThe overall indicate that perceived trust and social norms significantly influence the adoption of fintech by Malaysian waqf. At the same time, other factors such as awareness, relative advantage and knowledge do not appear to significantly influence the adoption of fintech amongst Malaysian waqf institutions.Research limitations/implicationsThis study contributes significantly to the current literature concerning the Fourth Industrial Revolution and the wave of technologies. In addition, this study supports relevant theories, including DOI and other technology adoption theories. Aside from this, the study provides empirical contributions to waqf management regarding collecting and distributing waqf, improving the level of regulation of the waqf institutions and enhancing trust between donors, waqf management and beneficiaries. This study is amongst the first in the area of waqf that focus on Malaysian waqf intitutions.Originality/valueThis is important for policy development to support the utilisation of fintech for waqf institutions, which leads to more transparency and efficiency.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2022-0264

Expediting financial inclusion in Tanzania using FinTech: the perspective of diffusion of innovation theory

“…Previous studies have shown that trust significantly influences the adoption of FinTech (Meyliana and Fernando, 2019;Zakariyah et al, 2023). This means that if consumers have a high level of trust in the FinTech services offered by banks, the possibility of adopting the FinTech services will be very high.…”

“…Previous studies have shown that relative advantage positively and significantly influences adopting FinTech in the banking industry (Lyimo and Dev, 2020; Setiawan et al ., 2021). Nevertheless, a study conducted by Zakariyah et al . (2023) revealed that relative advantages have an insignificant influence on adopting financial technologies.…”

Determinants of Digital Insurance Adoption among Micro-Entrepreneurs in Uganda

“…We obtained the scale items from previous studies and modified them to meet the purpose of the study. Relative advantage (four items) from [32], social influence (four items) from [36], perceived trust (three items) from [3], knowledge of digital insurance (three items) from [42], and digital insurance adoption (three items) from [43]. We employed a Likert scale (Strongly agree, agree, neutral, disagree, and strongly disagree).…”

“…Digital insurance is a modern transformative tool in the insurance sector that helps customers experience a user-friendly environment that enables maximized utilitarian value, [32]. With digital insurance, customers can experience lower transaction costs, quick, and easy operations, [2].…”

“…Trust is fundamental to ensuring consistent business operations. According to [32], perceived trust involves a person's confidence, belief, and dependence on individuals within their immediate surroundings. People tend to develop a sense of trust in the community of their interest.…”