The Effect of Personal Innovativeness and Trust in Online Lending Platforms to Adoption of Indonesian Sharia FinTech Lending

Abstract

As one of the nations with tremendous Muslim residents, Indonesia only has eight authorized Sharia FinTech Lending. In addition, based on a survey of the Sharia financial literacy and inclusion index conducted by the OJK, it is comprehended that the Sharia financial literacy index in Indonesia is still low compared to conventional finance. This study aims to identify the impact of Profit-sharing, Personal Innovativeness, Familiarity, Security, and Trust in Online Lending Platform on the Intention to Use of Sharia FinTech Lending in Indonesia. These five factors were evaluated for their influence because they were considered to contribute to the increase in the Sharia financial literacy. This study involved 104 respondents to fill out an online questionnaire and two respondents to validate the recommendations designed through interview techniques. The results of quantitative data processing were analyzed using SmartPLS. This study concludes that Personal Innovativeness and Trust in Online Lending Platforms affect Intention to Use in Sharia FinTech Lending. This study contributes several recommendations for Sharia FinTech Lending providers in Indonesia to improve their services to be accepted by the community and under sharia principles.