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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•
Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model

[...]

Paul A. Pavlou
01 Apr 2003-International Journal of Electronic Commerce
TL;DR: The proposed model integrates trust and perceived risk, which are incorporated given the implicit uncertainty of the e-commerce environment, and is justified by placing all the variables under the nomological TRA structure and proposing their interrelationships.
Abstract: This paper aims to predict consumer acceptance of e-commerce by proposing a set of key drivers for engaging consumers in on-line transactions. The primary constructs for capturing consumer acceptance of e-commerce are intention to transact and on-line transaction behavior. Following the theory of reasoned action (TRA) as applied to a technology-driven environment, technology acceptance model (TAM) variables (perceived usefulness and ease of use) are posited as key drivers of e-commerce acceptance. The practical utility of TAM stems from the fact that e-commerce is technology-driven. The proposed model integrates trust and perceived risk, which are incorporated given the implicit uncertainty of the e-commerce environment. The proposed integration of the hypothesized independent variables is justified by placing all the variables under the nomological TRA structure and proposing their interrelationships. The resulting research model is tested using data from two empirical studies. The first, exploratory study comprises three experiential scenarios with 103 students. The second, confirmatory study uses a sample of 155 on-line consumers. Both studies strongly support the e-commerce acceptance model by validating the proposed hypotheses. The paper discusses the implications for e-commerce theory, research, and practice, and makes several suggestions for future research.

4,639 citations

Journal Article•DOI•
A model for types and levels of human interaction with automation

[...]

Raja Parasuraman1, Thomas B. Sheridan2, Christopher D. Wickens3•
The Catholic University of America1, Massachusetts Institute of Technology2, University of Illinois at Urbana–Champaign3
01 May 2000
TL;DR: A model for types and levels of automation is outlined that can be applied to four broad classes of functions: 1) information acquisition; 2) information analysis; 3) decision and action selection; and 4) action implementation.
Abstract: We outline a model for types and levels of automation that provides a framework and an objective basis for deciding which system functions should be automated and to what extent. Appropriate selection is important because automation does not merely supplant but changes human activity and can impose new coordination demands on the human operator. We propose that automation can be applied to four broad classes of functions: 1) information acquisition; 2) information analysis; 3) decision and action selection; and 4) action implementation. Within each of these types, automation can be applied across a continuum of levels from low to high, i.e., from fully manual to fully automatic. A particular system can involve automation of all four types at different levels. The human performance consequences of particular types and levels of automation constitute primary evaluative criteria for automation design using our model. Secondary evaluative criteria include automation reliability and the costs of decision/action consequences, among others. Examples of recommended types and levels of automation are provided to illustrate the application of the model to automation design.

3,246 citations

Journal Article•DOI•
Innovation characteristics and innovation adoption-implementation: A meta-analysis of findings

[...]

L. G. Tornatzky, K. J. Klein
01 Feb 1982-IEEE Transactions on Engineering Management
TL;DR: A review and meta-analysis of seventy-five articles concerned with innovation characteristics and their relationship to innovation adoption and implementation was performed in this article, where three innovation characteristics (compatibility, relative advantage, and complexity) had the most consistent significant relationship with innovation adoption.
Abstract: A review and meta-analysis was performed of seventy-five articles concerned with innovation characteristics and their relationship to innovation adoption and implementation. One part of the analysis consisted of constructing a methodological profile of the existing studies, and contrasting this with a hypothetical optimal approach. A second part of the study employed meta-analytic statistical techniques to assess the generality and consistency of existing empirical findings. Three innovation characteristics (compatibility, relative advantage, and complexity) had the most consistent significant relationship to innovation adoption. Suggestions for future research in the area were made.

3,181 citations

Journal Article•DOI•
Trust in close relationships.

[...]

John K. Rempel, John G. Holmes, Mark P. Zanna
01 Jul 1985-Journal of Personality and Social Psychology
TL;DR: In this article, a theoretical model describing interpersonal trust in close relationships is presented, and three dimensions of trust are identified, based on the type of attributions drawn about a partner's motives.
Abstract: A theoretical model describing interpersonal trust in close relationships is presented. Three dimensions of trust are identified, based on the type of attributions drawn about a partner's motives. These dimensions are also characterized by a developmental progression in the relationship. The validity of this theoretical perspective was examined through evidence obtained from a survey of a heterogeneous sample of established couples. An analysis of the Trust Scale in this sample was consistent with the notion that the predictability, dependability, and faith components represent distinct and coherent dimensions. A scale to measure interpersonal motives was also developed. The perception of intrinsic motives in a partner emerged as a dimension, as did instrumental and extrinsic motives. As expected, love and happiness were closely tied to feelings of faith and the attribution of intrinsic motivation to both self and partner. Women appeared to have more integrated, complex views of their relationships than men: All three forms of trust were strongly related and attributions of instrumental motives in their partners seemed to be self-affirming. Finally, there was a tendency for people to view their own motives as less self-centered and more exclusively intrinsic in flavor than their partner's motives.

2,920 citations

Journal Article•DOI•
A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents

[...]

Dan J. Kim1, Donald L. Ferrin2, H. Raghav Rao3•
University of Houston–Clear Lake1, Singapore Management University2, University at Buffalo3
01 Jan 2008
TL;DR: A theoretical framework describing the trust-based decision-making process a consumer uses when making a purchase from a given site is developed and the proposed model is tested using a Structural Equation Modeling technique on Internet consumer purchasing behavior data collected via a Web survey.
Abstract: Are trust and risk important in consumers' electronic commerce purchasing decisions? What are the antecedents of trust and risk in this context? How do trust and risk affect an Internet consumer's purchasing decision? To answer these questions, we i) develop a theoretical framework describing the trust-based decision-making process a consumer uses when making a purchase from a given site, ii) test the proposed model using a Structural Equation Modeling technique on Internet consumer purchasing behavior data collected via a Web survey, and iii) consider the implications of the model. The results of the study show that Internet consumers' trust and perceived risk have strong impacts on their purchasing decisions. Consumer disposition to trust, reputation, privacy concerns, security concerns, the information quality of the Website, and the company's reputation, have strong effects on Internet consumers' trust in the Website. Interestingly, the presence of a third-party seal did not strongly influence consumers' trust.

2,650 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.