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Journal ArticleDOI

How perceived risk, benefit and trust determine user Fintech adoption: a new dimension for Islamic finance

04 Mar 2021-Foresight (Emerald Publishing Limited)-Vol. 23, Iss: 4, pp 403-420

Abstract: This study’s objectives are twofold; first, this paper aims to explore the determinants of perceived benefit and perceived risk of Islamic Fintech. Second, this study examines the influence of perceived benefit, perceived risk and user trust on the intention to adopt Islamic Fintech. The sample of 350 was distributed among the respondents, while a usable sample of 321 was retained for the analysis. The study performed a self-administration survey to collect the sample data while the hypothesized model was tested using SmartPLS. The results revealed that perceived benefit and perceived risk were significant and positively influenced by their factors. Moreover, perceived benefits showed a positive and significant impact on trust. However, perceived risk had a negative and significant impact on trust. The results also found a strong positive and significant relationship between trust and intention to adopt Islamic Fintech. The outcome of this research may be used to develop strategies for Fintech and enables the financial sector to attain economies of scale in the world.
Topics: Risk perception (50%)

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Summary

  • This study’s objectives are twofold; first, this paper aims to explore the determinants of perceived benefit and perceived risk of Islamic Fintech.
  • Second, this study examines the influence of perceived benefit, perceived risk and user trust on the intention to adopt Islamic Fintech.
  • The sample of 350 was distributed among the respondents, while a usable sample of 321 was retained for the analysis.
  • The study performed a self-administration survey to collect the sample data while the hypothesized model was tested using SmartPLS.
  • The results revealed that perceived benefit and perceived risk were significant and positively influenced by their factors.
  • Moreover, perceived benefits showed a positive and significant impact on trust.
  • Perceived risk had a negative and significant impact on trust.
  • The results also found a strong positive and significant relationship between trust and intention to adopt Islamic Fintech.
  • The outcome of this research may be used to develop strategies for Fintech and enables the financial sector to attain economies of scale in the world.

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How perceived risk, benefit and trust determine user Fintech adoption: a new
dimension for Islamic finance
Abstract
This study’s objectives are twofold; first, this paper aims to explore the determinants of
perceived benefit and perceived risk of Islamic Fintech. Second, this study examines the
influence of perceived benefit, perceived risk and user trust on the intention to adopt Islamic
Fintech. The sample of 350 was distributed among the respondents, while a usable sample of
321 was retained for the analysis. The study performed a self-administration survey to collect
the sample data while the hypothesized model was tested using SmartPLS. The results
revealed that perceived benefit and perceived risk were significant and positively influenced
by their factors. Moreover, perceived benefits showed a positive and significant impact on
trust. However, perceived risk had a negative and significant impact on trust. The results also
found a strong positive and significant relationship between trust and intention to adopt
Islamic Fintech. The outcome of this research may be used to develop strategies for Fintech
and enables the financial sector to attain economies of scale in the world.
Citations
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Journal ArticleDOI
29 Oct 2021
Abstract: The objective of this research is to propose a strategy to strengthen the islamic digital wallet or electronic wallet (e-wallet) in Indonesia to compete with its conventional counterparts. Qualitative research methods with study literature were chosen to explore previous research that had been discussed on e-wallets particularly from the Islamic perspective both at global and national levels through reputable journals, reports, and other supportive documents. The results depicted that the Islamic e-wallet can be optimized through four points, namely promotion, education, collaboration, and trust but remained fulfilling sharia compliance so that the values of Islamic teachings are not vanished. Promotions in the form of cashback can be substituted for points to be converted into donations through the Islamic crowdfunding platform. Education can be improved through social media platforms. The way is by coordinating with Islamic public figures, collaboration with merchants and service providers. Finally increasing trust by safeguarding user data and funds.

References
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Book
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TL;DR: The Second Edition of this practical guide to partial least squares structural equation modeling is designed to be easily understood by those with limited statistical and mathematical training who want to pursue research opportunities in new ways.
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Shirley Taylor1, Peter A. Todd1Institutions (1)
TL;DR: The results indicate that the decomposed Theory of Planned Behavior provides a fuller understanding of behavioral intention by focusing on the factors that are likely to influence systems use through the application of both design and implementation strategies.
Abstract: The Technology Acceptance Model and two variations of the Theory of Planned Behavior were compared to assess which model best helps to understand usage of information technology. The models were compared using student data collected from 786 potential users of a computer resource center. Behavior data was based on monitoring 3,780 visits to the resource center over a 12-week period. Weighted least squares estimation revealed that all three models performed well in terms of fit and were roughly equivalent in terms of their ability to explain behavior. Decomposing the belief structures in the Theory of Planned Behavior provided a moderate increase in the explanation of behavioral intention. Overall, the results indicate that the decomposed Theory of Planned Behavior provides a fuller understanding of behavioral intention by focusing on the factors that are likely to influence systems use through the application of both design and implementation strategies.

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