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Investigating the Determinants of Islamic Mobile FinTech Service Acceptance: A Modified UTAUT2 Approach

Author

Listed:
  • Md. Sharif Hassan

    (Faculty of Business and Communication, Universiti Malaysia Perlis, Arau 02600, Malaysia
    Department of Business Administration, University of Asia Pacific, Dhaka 1205, Bangladesh)

  • Md. Aminul Islam

    (Faculty of Business and Communication, Universiti Malaysia Perlis, Arau 02600, Malaysia
    Faculty of Business and Entrepreneurship, Daffodil International University, Dhaka 1341, Bangladesh
    School of Business Administration, East Delta University, Chattogram 4209, Bangladesh
    Faculty of Social Science and Education, Universitas Ubudiyyah Indonesia, Banda Aceh 23231, Indonesia)

  • Mohd Faizal bin Yusof

    (Faculty of Resilience, Rabdan Academy, Abu Dhabi P.O. Box 22401, United Arab Emirates)

  • Hussen Nasir

    (Faculty of Business and Communication, Universiti Malaysia Perlis, Arau 02600, Malaysia)

  • Nasrin Huda

    (Faculty of Business and Communication, Universiti Malaysia Perlis, Arau 02600, Malaysia)

Abstract

Financial technology (FinTech) is leading a worldwide revolution to increase financial access. Bangladesh’s financial sector is entering a new era of innovation due to the country’s rapid embrace of financial technology. Mobile FinTech service (MFS) providers achieve unattainable economic peaks every year. The growth of conventional banks’ MFS is significant. However, Islamic banks have a good market share but cannot attract more customers to use the Islamic MFS. This study aimed to determine the factors influencing Islamic bank customers to accept the Islamic MFS. This study utilized a modified UTAUT2 model. Data were collected from 310 Islamic bank customers by using online Google Forms. Structural equation modeling was employed to analyze the data by SMART PLS 3.2.9. The results revealed that social influence, facilitating conditions, price, and perceived credibility have a significant positive effect on Islamic MFS acceptance. However, performance expectancy and effort expectancy showed no impact on Islamic MFS acceptance. This research framework is helpful for academicians and researchers to investigate FinTech acceptance in developing countries. Moreover, the study results are beneficial for MFS providers and FinTech firms.

Suggested Citation

  • Md. Sharif Hassan & Md. Aminul Islam & Mohd Faizal bin Yusof & Hussen Nasir & Nasrin Huda, 2023. "Investigating the Determinants of Islamic Mobile FinTech Service Acceptance: A Modified UTAUT2 Approach," Risks, MDPI, vol. 11(2), pages 1-15, February.
    • Handle: RePEc:gam:jrisks:v:11:y:2023:i:2:p:40-:d:1063292
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    References listed on IDEAS

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    Cited by:

    1. Sadia Afrin & Muhammad Asyraf Bin Mohd Kassim & Mohd Faizal Yusof & Md. Sharif Hassan & Md. Aminul Islam & Khairun Nisa Binti Khairuddin, 2023. "Investigating the Determinants of Employee Performance for Sustainability: A Study on the Bangladesh Insurance Industry," Sustainability, MDPI, vol. 15(7), pages 1-16, March.
    2. Syamsul Bachri Soamole, 2025. "Beyond Bitcoin: Developing a Hybrid Shariah-Compliant Blockchain Model for Islamic Finance – Empirical Evidence and Simulation Analysis," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 113-134.
    3. Nahida Sultana & Rabeya Sultana & Most. Sadia Akter, 2026. "Exploring mobile financial services adoption among Bangladeshi Millennials: role of technology awareness, perceived value, gender, and education level," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 31(1), pages 1-25, March.
    4. Gupta, Somya & Hassen, Majdi & Pandey, Dharen Kumar & Sahu, Ganesh P., 2024. "Cognitive, affective, and normative factors affecting digital insurance adoption among persons with disabilities: A two-stage SEM-ANN analysis," Global Finance Journal, Elsevier, vol. 63(C).
    5. Dian Palupi Restuputri & Figo Bimaraka Refoera & Ilyas Masudin, 2023. "Investigating Acceptance of Digital Asset and Crypto Investment Applications Based on the Use of Technology Model (UTAUT2)," FinTech, MDPI, vol. 2(3), pages 1-26, June.
    6. K Padma Kiran & Naga Sailaja Vedala, 2025. "Assessing Unified Payments Interface (UPI) adoption and usage through the interplay of UTAUT factors," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.

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