Why People Intent to Invest Using Islamic Fintech: An analysis of Perceived Benefit, Risk, and Maqoshid Sharia

Financial Technology (Fintech) has been interesting topic for recent years, which is driven by sophisticated digital technology in what so-called Industrial Revolution 4.0 era. Indifferent with non-digital financial institution (NDFI), Fintech could be categorized into conventional and Islamic (sharia compliance). Islamic Fintech has become the evidence that Islam and technology could be integrated and stand togeher. This paper aims at measuring the effect of perceived benefit, perceived risk, and perceived Maqoshid sharia on the intention to invest in Islamic Fintech, on a basis of 542 samples from NDFI workers. A conceptual model was adopted from Theory of Planned Behavior and tested using Structural Equation Modeling Maximum Likelihood Estimation. The empirical result shows that there is significant positive impact of perceived benefit 2.67 and perceived Maqoshid sharia 8.53, and a significant negative impact of perceived risk -1.68 toward the investment intention. We summarize that the perceived risk is strong predictor of intention. On the other hand, Islamic Fintech shall pay more attention on perceived Maqoshid sharia especially on justice and social responsibility.