The CROWDFUNDING AND ISLAMIC SECURITIES: THE ROLE OF FINANCIAL LITERACY

Abstract

This study aims to investigate the effect of Islamic Financial Literacy on the intentions of prospective Muslim investors to invest through the Islamic securities crowdfunding FinTech (I-SCF FinTech) platform. With employed Partial Least Square – Structural Equation Modeling, this study used 100 valid samples from the total 125 questionnaires filled in. The sample technique was Simple random sampling with convenience technique. Data were obtained through filling out online questionnaires using a google form containing questions adopted from relevant research. We also employed the Technology Acceptance Model (TAM) combined with the Theory of Planned Behavior (TPB) which also integrated with Islamic Financial Literacy (IFL) focused on investment. The main finding in this study is that IFL switch is the identity as well as the risks inherent in Islamic financial products is found to have a significant effect on behavioral intention. The results of this study are expected to add to the scientific treasures on the side of investors' intentions to adopt I-SCF FinTech which is still very rarely done. Practically, the research has implications for the need to strengthen product and contract literacy followed by supervision and implementation of contracts that are in line with sharia principles through synergy between the Financial Service Authority (OJK) and the crowdfunding FinTech associations as well as relevant stakeholders.