Financial technology (FINTECH) services in Islamic Financial institutions:

Abstract

The Islamic banking and financial system have existed for a long time in Malaysia since the enactment of the Islamic Banking Act 1983 and the Takaful Act 1984, which is the basis for Shari'ah-compliant banking and takaful operations. To date, both acts have been replaced by the Islamic Financial Services Act 2013 (IFSA2013). In the era of the IR 4.0, technological advances facilitated human affairs with the help of technological tool, including in the banking and financial sectors. However, there are some problem statement that need to be addressed. First, the studies on the level of awareness of FinTech usage in Malaysia are still low and limited. Secondly, there are not many initiatives on FinTech development event hough Malaysia has been focusing on becoming the leader in Islamic finance. Third the Prime Minister of Malaysia is calling for Islamic banking and finance players to change the way they provide and deliver Islamic banking products and services by investing in technology. Due to the above three issues, this study was conducted to achieve the objective of looking at the level of consumers awareness on financial technology (FinTech). In addition, the research question also focuses on the level of consumer awareness from the perspective of Maqasid Al-Shari'ah. The research questions of the study investigate whether perceived usefulness, perceived ease of use, relative advantage and security concern, have a positive relationship with awareness toward FinTech services in Islamic Financial Institutions among Malaysian Muslim students of UniSHAMS from the perspective of Maqasid Al-Shari'ah?. The main objective of this paper is to focus on the level of consumer awareness of FinTech services from the perspective of Maqasid Al-Shari'ah. The specific objectives of this study is to study the relationship between perceived ease of use, relative advantage and security concerns with the awareness of FinTech services from the perspective of Maqasid Al-Shari'ah.