Analysis of Public Interest in Sharia Investing Through Financial Technology Companies

Abstract

—Nowadays, a trend is developing to seek the application of sharia law in every line of life, including in finance, especially investment. Given that Indonesia is the largest Muslim country in the world, it is the right place for the Islamic financial market share. But in reality, the share of the Islamic financial market is at 5% in 2018. Muslim investors are required to comply with ethical orders that are determined when making financial investments, which must be in accordance with Islamic principles, namely a ban on the use of Riba (interest), Maysir (gambling) and Gharar (uncertainty). On the other hand, the emergence of fintech which brings a new paradigm in which information technology is able to drive then create innovation in the financial industry. Fintech Syariah itself provides an alternative facility to transact Islamic financial products for the community. Therefore, in accordance with the literature which says that Islamic fintech is one way to be able to increase the market share of Islamic finance, the authors examine the public interest to invest in sharia through fintech. Using online questionnaires and respondents is not limited to just fintech users. The merging of the factors of perceived benefits, perceived risk, trust and perceived maqashid sharia were used in developing this research framework. As many as 202 respondents, the results of testing the data show that perceptions of benefits and perceptions of Islamic maqashid have a positive effect on the intention to invest in sharia through fintech.