Why People Interested to Use Islamic Fintech: An Analysis of Perceived Benefit, Risk, and Maqoshid Shariah
Dona Ramadhan (a*), Dedi Wibowo (b*)
a. University of Indonesia
dona.ramadhan[at]ui.ac.id
b. Magister Manajemen FEB Universitas Indonesia, Fakultas Ekonomi Universitas Dirgantara Marsekal Suryadarma, Faculty Technology Management & Technopreneur University Teknikal Malaysia Melaka
Abstract
Islamic banking market share in Indonesia remains approximately five percent in 2018. In contrast, Fintech peer-to-peer lending amount has increased rapidly. This phenomenon shows that people now have started to adopt novel technology in the financial sector. This paper aims at measuring the effect of perceived benefit, perceived risk, and perceived Maqoshid shariah on the intention to invest in Islamic Fintech, assuming Islamic Fintech could be an alternative way to boost Islamic finance. We use convenience, ease of process, and cost-saving as the indicators of perceived benefit. Then we use financial loss, privacy and technology as the indicators of perceived risk. Finally, we use beliefs, Maslahah, and profitability, derived from the combination of religious values and Maqoshid Shariah Index (MSI), as indicators of perceived Maqoshid shariah. We hypothesize that perceived benefit and Maqoshid shariah have a positive impact on the behavioral intention, while perceived risk will influence the behavioral intention negatively.
Keywords: Islamic Fintech, Perceived Benefit, Perceived Risk, Maqoshid Syariah
Topic: International Conference of Islamic Economic and Financial Inclusion