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Journal Article•DOI•

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

Muhammad Ali, Syed Ali Raza, Bilal Khamis, Chin-Hong Puah, Hanudin Amin 
04 Mar 2021-Foresight (Emerald Publishing Limited)-Vol. 23, Iss: 4, pp 403-420
TL;DR: In this paper, the influence of perceived benefit, perceived risk and user trust on the intention to adopt Islamic Fintech has been explored and the results revealed that perceived benefit and perceived risk were significant and positively influenced by their factors.
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.

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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
More filters
Journal Article•DOI•
Fintech in islamic finance literature: A review

[...]

Muneer M. Alshater, Irum Saba, Indri Supriani, Mustafa Raza Rabbani
01 Aug 2022-Heliyon
TL;DR: In this article , a review of Islamic FinTech research development from 2017 to 2022 is presented, which adopts a hybrid approach combining bibliometric and content analysis to reveal the current research trend of Islamic fintech research.

20 citations

Journal Article•DOI•
Benefit–Risk Perceptions of FinTech Adoption for Sustainability from Bank Consumers’ Perspective: The Moderating Role of Fear of COVID-19

[...]

Ruzita Abdul-Rahim, Siti Aisah Bohari, Aini Aman, Zainudin Awang
08 Jul 2022-Sustainability
TL;DR: In this article, a survey of bank consumers in Malaysia between December 2021 and February 2022 yielded 1279 usable questionnaires, randomly selected to generate 400 respondents, and the results revealed that the perceived benefits significantly influence FinTech adoption, whereas perceived risk does not.
Abstract: Industry 4.0 technologies, designed to optimize efficiencies, are indisputable change agents for sustainability. In the context of financial technology (FinTech), the burgeoning question concerns how to create FinTech natives from the COVID-19-pandemic-induced adoption and realize FinTech’s impact on sustainability? Thus, this study had the following purposes: (1) to examine whether perceived benefits and risks affect FinTech services adoption; (2) to test the role of fear of COVID-19 in FinTech adoption; and (3) to investigate whether FinTech adoption contributes to sustainability. The hypotheses derived from the net valence framework, sustainable information society theory, and protection motivation theory were tested using structural equation modeling (SEM). Our online survey of bank consumers in Malaysia between December 2021 and February 2022 yielded 1279 usable questionnaires, randomly selected to generate 400 respondents. The results revealed that: (1) the perceived benefits significantly influence FinTech adoption, whereas perceived risk does not; (2) fear of COVID-19 moderates the perceived benefits–FinTech adoption relationship and fully mediates the perceived risk–FinTech adoption relationship; and (3) FinTech adoption significantly affects sustainability. This study demonstrates that FinTech adoption models must exploit consumer sentiment (e.g., fear) to optimize FinTech’s benefits and risks, thereby creating FinTech natives to realize its impacts on economic, environmental, and social sustainability.

11 citations

Journal Article•DOI•
Opportunities and Barriers for FinTech in SAARC and ASEAN Countries

[...]

Tasadduq Imam, Angelique N. McInnes, Sisira Colombage, Robert J. Grose
13 Feb 2022-Journal of risk and financial management
TL;DR: In this paper , the authors assess the opportunities and challenges for different categories of FinTechs in the SAARC and ASEAN regions, and develop a new index, termed the FinTech Opportunity Index (FOI), to conceptualise the opportunity and barriers based on individual savings, borrowings, purchasing behavior, and payment preferences.
Abstract: This article assesses the opportunities and challenges for different categories of FinTechs in the SAARC and ASEAN regions. We consider the global financial inclusion data released by the World Bank and map the responses to gain insights into the opportunities and challenges for FinTechs in the respective regions. We develop a new index, termed the FinTech Opportunity Index (FOI), to conceptualise the opportunities and barriers based on individual savings, borrowings, purchasing behaviour, and payment preferences. We note that FinTech services have potential opportunities for expansion in the ASEAN regions but less so in the SAARC regions. The need for different types of FinTech services varies between regions. Services such as crowdfunding, neobanks, and InsurTech have potential in the ASEAN regions, especially with the positive attitude towards entrepreneurship and asset investments. In the SAARC regions, InsurTechs linked to health care has potential along with LendTechs and neobanks. We further note that males, and the young are more likely adopters of FinTechs in both regions. The analysis suggests the need for innovative promotions and education to motivate the more sceptical, especially women and the elderly population, to adopt FinTech services.

10 citations

Journal Article•DOI•
Drivers Influencing the Adoption Intention towards Mobile Fintech Services: A Study on the Emerging Bangladesh Market

[...]

Md. Sharif Hassan, Md. Aminul Islam, Farid Ahammad Sobhani, Hussen Bin Nasir, Imroz Mahmud, Fatema Tuz Zahra 
20 Jul 2022-Information
TL;DR: In this article , a study aimed to identify the factors that impact the adoption intention of consumers to embrace and enhance the use of mobile fintech services in an emerging market, Bangladesh.
Abstract: People’s acceptance of technological changes has escalated with time. However, the acceptance and adoption of fintech services hiked after the outbreak of the virulent coronavirus. With this breakout, the adoption of mobile fintech services (MFS) increased among general citizens and business sectors around the world, including in developed, emerging, and developing economies. This study aimed to identify the factors that impact the adoption intention of consumers to embrace and enhance the use of mobile fintech services in an emerging market, Bangladesh. A research model was developed to strengthen the objective of this paper. A total of 218 respondents responded to the questionnaire. The study utilized structural equation modeling to analyze the results in SmartPLS software. The results showed significant positive effects of social influence, trust, perceived benefit, and facilitating conditions on the adoption intention towards MFS. Mobile fintech service providers must keep their users’ needs and literacy rates in mind when designing the user interface (UI). Moreover, they should also cater more efficient services to the users and work based on the feedback received. The customers’ satisfaction will ultimately lead to customers conducting more digital transactions and will contribute to the escalation of fintech transactions, resulting in more financial inclusion.

8 citations

Journal Article•DOI•
Factors Affecting Fintech Adoption: A Systematic Literature Review

[...]

Egi Arvian Firmansyah, Masairol Masri, Muhammad Anshari, Mohd Hairul Azrin Hj Besar
28 Dec 2022-FinTech
TL;DR: In this article , the authors employed the systematic literature review (SLR) technique to review recent literature on fintech adoption or acceptance employing the Scopus database (2019-2022).
Abstract: The rise of financial technology (fintech) has been one of the substantial changes in the financial landscape driven by technological advancements and the global financial crisis. This paper employs the systematic literature review (SLR) technique to review recent literature on fintech adoption or acceptance employing the Scopus database (2019–2022). The final reviewed documents are sixteen journal articles published by various journals from different country contexts and theoretical backgrounds. Several inclusion criteria were used to filter those selected documents. One crucial criterion is the journal continuity in the Scopus index, which assures the quality of the published scholarly works. This criterion selection is expected to represent this paper’s novelty. The study reveals various determinants derived from the theories used by the fintech researchers. However, the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT) are the most used theoretical foundations. Additionally, trust, financial literacy, and safety are other factors developed by previous researchers and are significant determinants of fintech adoption. Besides, these results suggest that future studies on fintech adoption develop a genuine construct since fintech keeps progressing, and so does the customers’ behavior.

6 citations

References
More filters
Journal Article•DOI•
Making in-store payment enjoyable by adopting mobile payment

[...]

Gwarlann de Kerviler1, Nathalie Demoulin1•
Lille Catholic University1
01 Jan 2017
TL;DR: In this paper, the authors identify utilitarian, hedonic and social benefits as key drivers of adoption for proximity mobile payment (p-m-payment), which corresponds to a recent tendency of shoppers to finalize the transaction through their smartphone while they shop in a store.
Abstract: The increasing penetration rate of smartphones changes behaviors based on mobile unique features. Our research provides a first attempt to better understand the adoption of in-store smartphone usage to enhance a brick-and-mortar experience. More particularly, it focuses on proximity mobile payment (p-m-payment), which corresponds to a recent tendency of shoppers to finalize the transaction through their smartphone while they shop in a store. Using a perceived value approach, this paper identifies utilitarian, hedonic and social benefits as well as financial and privacy risks as key drivers of adoption for p-m-payment.A comparison between the drivers of this new in-store mobile usage and the ones for more familiar tasks such as mobile information search, highlights clear differences in what drives intention, as shoppers are more experienced with the latter.The paper discusses the implications for mobile and channel researches and provides suggestions for retailers to facilitate and take advantage of p-m-payment.

3 citations

A Study on Fintech(Financial Technology) and E-Business : State of the Art

[...]

Chang Won Lee
01 Oct 2015
TL;DR: In this article, the authors present a state of the art in financial technology and the current application of Fintech in e-business sectors and provide the managerial insights for comprehensive framework in FintECH and e-Business in theories and practices.
Abstract: This study is to present a state of the art in Financial Technology(Fintech) and the current application of Fintech in e-business sectors. The new technology and business ecosystems are rapidly changed in Fintech. If any organizations doesn"t have a proper value proposition and core competency, they will face in failure in their business worlds. As economic entities of business systems, Fintech systems face the issues of planning, operating, and evaluating its current technological resource based decisions. In this global ecosystems, new financial innovation with technology is now a core business agenda. Since no previous academic study on Fitech has been published, a comprehensive Fintech study in terms of technology and e-business perspective is highly required to build up a theoretical frameworks and practical case analyses. This study is to 1) explore key definitions and characteristics in Fintech, 2) review comprehensive relevant studies of Fintech, and 3) analyze case studies related Fintech and e-Business experiences. The study shows show important managerial viewpoints on current and future Fintech ecosystems. This study provides the managerial insights for comprehensive framework in Fintech and e-Business in theories and practices.

3 citations

Dissertation•
Fintech and Entrepreneurial Finance: what´s coming next?

[...]

Mariscal Gregorio, Cristina Araume
01 Jan 2017

2 citations

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Q1. What have the authors contributed in "How perceived risk, benefit and trust determine user fintech adoption: a new dimension for islamic finance" ?

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 study performed a self-administration survey to collect the sample data while the hypothesized model was tested using SmartPLS. 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.