DIGITAL TRANSFORMATION IN ISLAMIC BANKING: A STRUCTURAL EQUATION MODELING APPROACH TO USER ADOPTION OF SHARIAH-COMPLIANT FINTECH SERVICES

Rizkiya Khalila; Umaira

doi:10.65802/mukhtasab.v2i3.240

Authors

Rizkiya Khalila Universitas Islam Negeri Sulthanah Nahrasiyah Lhokseumawe
Umaira Universitas Islam Negeri Ar-Raniry Banda Aceh

DOI:

https://doi.org/10.65802/mukhtasab.v2i3.240

Keywords:

Islamic digital, shariah fintech, user adoption

Abstract

The rapid digitalization of the global financial sector has compelled Islamic Banking Institutions (IBIs) to accelerate their digital transformation by integrating Shariah-compliant fintech services. Despite the structural growth of Islamic finance, user adoption of Islamic digital banking platforms exhibits regional variance and unique behavioral determinants rooted in religious values and technological perceptions. This study investigates the factors influencing user adoption of Shariah-compliant fintech services offered by Islamic banks using a Structural Equation Modeling (SEM) approach based on Partial Least Squares (PLS-SEM). Grounded in an extended Technology Acceptance Model (TAM), this research integrates novel constructs: Perceived Shariah Compliance (PSC), Initial Trust (IT), and Consumer Financial Literacy (CFL) alongside traditional variables including Perceived Usefulness (PU), Perceived Ease of Use (PEOU), and Behavioral Intention (BI). Primary data were collected through a structured questionnaire administered to 420 active clients of Islamic banks across major urban centers. The empirical findings reveal that Perceived Shariah Compliance and Initial Trust exert the strongest direct positive effects on Behavioral Intention, surpassing the influence of traditional PEOU. Furthermore, Perceived Ease of Use significantly impacts Perceived Usefulness, which indirectly reinforces user adoption. Consumer Financial Literacy serves as a crucial moderating variable that amplifies the relationship between Shariah compliance perception and user trust. The structural model demonstrates strong explanatory power ( for Behavioral Intention). The findings provide strategic insights for Islamic bank executives, fintech developers, and regulatory bodies to optimize user experience while maintaining rigorous Shariah governance.

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