The Adoption of Sharia Fintech Among Millenial in Indonesia: Moderating Effect of Islamic Financial Literacy on UTAUT 2

Abstract

The development of Islamic Fintech in Indonesia shows promising progress. As of April 2021, there are 146 fintech companies. However, this large number of companies is only able to reach 7% of the total population in Indonesia. This study aims to examine what factors that influence the intention to use Islamic fintech in Indonesia by testing the UTAUT 2 theory developed by Venkatesh with the addition of Islamic Financial Literacy as a moderating variable. Data was collected through an online questionnaire adapted from previous research. 30 data from respondents are collected then tested using the SEM-PLS analysis method with the WarpPLS 7.0 and SPSS 24. The test show that Performance Expectancy (PE), Effort Expectancy (EE), Facilitating Conditions (FC), and Price Value (PV) affect Behavioral Intention (BI) positively and significantly. Furthermore, Social Influence (SI) and Hedonic Motivation (HM) show a positive but not significant effect. Likewise, Islamic Financial Literacy as a moderating variable does not affect the relationship between SI and HM to BI