Abstract:
Purpose – The purpose of this study is to examine the determinants that impact the inclination to embrace
financial technology (fintech) among Islamic banking customers in Sri Lanka by using the extended Unified
Theory of Acceptance and Use of Technology (UTAUT). Design/methodology/approach – This study used a quantitative, self-administered questionnaire that
applied a convenience sampling strategy to collect 393 valid responses from customers who used Islamic
banking products in Sri Lanka. The data were analysed in two stages: Partial Least Squares Structural Equation
Modelling (PLS-SEM) using SmartPLS 4 and fuzzy-set qualitative comparative analysis (fsQCA).
Findings – The PLS-SEM results indicate that performance expectancy, effort expectancy, perceived
value, social influence, privacy enablers, system quality, personal innovativeness and facilitating
conditions have positive and significant impacts. By contrast, perceived risk negatively and significantly
impacts the adoption intention of fintech among Islamic banking customers. Personal innovativeness
moderated only the relationship between performance expectancy and adoption intention. By contrast, the
results obtained using fsQCA offer a distinct explanation and enhanced understanding of the propensity
of Islamic banking customers to adopt fintech services by uncovering the intricate connections among
various combinations of factors that precede adoption intention. This facilitates comprehension of the
factors influencing the intention of such customers to adopt fintech in Sri Lanka.
Practical implications – This study provides significant insights for Islamic financial institutions offering
f
intech service strategies to enhance fintech adoption among their customers. This assists these institutions in
determining their objectives to promote fintech adoption among customers in Sri Lanka. In addition, regulators
can gain an understanding of their role in establishing user-friendly and adaptable fintech services for
individual users.
Originality/value – This study contributes to the expanding body of research on fintech adoption in the
Islamic banking sector, specifically in Sri Lanka. Sri Lanka has been slow to adopt fintech services as a
developing country for Islamic banking. This study successfully demonstrates the effectiveness of the
proposed theoretical framework in identifying the factors underlying slow adoption. To the best of the authors’ knowledge, this study is the first to use fsQCA with PLS-SEM to examine Sri Lanka’s intention to adopt
fintech.
