Determinant Factors of Islamic Financial Technology Acceptance

Abstract

The rapid development of the Islamic-based financial industry in Indonesia has not been followed by the development of Islamic Financial Technology (iFinTech). This certainly raises questions about what factors affect iFinTech acceptance in Indonesia. In this study, the Technology Acceptance Model (TAM) was applied to identify the determinant factors of iFinTech acceptance. In this regard, five factors were identified as the determinant factors of iFinTech acceptance, namely perceived ease of use, perceived usefulness, subjective norm, self-efficacy, and customer innovativeness. Using an online questionnaire, this study gathered 526 responses from people who lived in various areas of Indonesia. Data were analyzed by a Structural Equation Model, and it was found that, among the five variables investigated, four variables, which are perceived usefulness, subjective norm, self-efficacy, and customer innovativeness, have significant influence on iFinTech acceptance; while perceive ease of use was found have no effect on iFinTech acceptance. This result is expected to be an input for related parties, such as iFinTech providers and the government, in making policies to encourage the development of the iFinTech industry in Indonesia.