Key Factors Driving Retail Investors to Embrace Islamic FinTech-SOTS (Shariah Online Trading System) in Indonesian Islamic Capital Market
DOI:
https://doi.org/10.31436/jif.v15i2.1136Keywords:
Islamic Capital Market, Islamic FinTech, Retail Investors, Shariah Online Trading System (SOTS)Abstract
Since its introduction in 2011, the Islamic FinTech–Shariah Online Trading System (SOTS) has served as a major innovation in Indonesia's Islamic capital market, enabling Shariah-compliant securities trading. Despite its potential, SOTS adoption among retail stock investors remains limited, with its market share declining from 5.1% in 2020 to 2.9% in 2025. This study investigates the determinants of retail investors' intention to use SOTS, with perceived trust (PT) examined as a mediating variable between attitude toward behavior (AB) and intention to use (ITU). Grounded in the Technology Acceptance Model (TAM), this quantitative study extends the model by incorporating government support (GS), religiosity (R), Islamic financial literacy (IFL), and user innovativeness (UI). Data were collected through an online questionnaire using purposive sampling, yielding 596 valid responses, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that perceived ease of use (PEOU), user innovativeness, religiosity, and Islamic financial literacy significantly influence attitude toward behavior, while perceived trust partially mediates the relationship between attitude toward behavior and intention to use SOTS. Conversely, government support and perceived usefulness do not have a significant effect on attitude toward behavior. This study contributes to the literature by extending TAM within the context of the Indonesian Islamic capital market and demonstrating the importance of Islamic-specific factors in explaining FinTech adoption. The findings also provide practical implications for regulators, policymakers, and industry practitioners in formulating strategies to strengthen SOTS adoption and promote greater financial inclusion in the Islamic capital market.
Downloads
References
Abdalloh, I. (2020). Optimising Fintech for retail investors: A case study of the Indonesian Islamic capital market. Paper presented at the IFSB & IIFM High-Level Seminar: Accelerating Islamic Capital Market Development and Digitalization, October 30, 2020.
Aboelmaged, M., & Gebba, T. R. (2013). Mobile Banking Adoption: An Examination of Technology Acceptance Model and Theory of Planned Behavior. International Journal of Business Research and Development, 2(1). https://doi.org/10.24102/ijbrd.v2i1.263
Al Nawayseh, M. K. (2020). Fintech in COVID-19 and beyond: What factors are affecting customers’ choice of fintech applications? Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1–15. https://doi.org/10.3390/joitmc6040153
Alaeddin, O., Rana, A., Zainudin, Z., & Kamarudin, F. (2018). From physical to digital: Investigating consumer behaviour of switching to mobile wallet. Polish Journal of Management Studies, 17(2), 18–30. https://doi.org/10.17512/pjms.2018.17.2.02
Amalia, S. (2018). Exploring strategies to optimize the collection of Zakat on shares in Indonesia. Tazkia Islamic Finance and Business Review. https://tifbr-tazkia.org/index.php/TIFBR/article/view/151
Asutay, M., Aziz, P. F., Indrastomo, B. S., & Karbhari, Y. (2023). Religiosity and Charitable Giving on Investors’ Trading Behaviour in the Indonesian Islamic Stock Market: Islamic vs Market Logic. Journal of Business Ethics, 188(2), 327–348. https://doi.org/10.1007/s10551-023-05324-0
Bach, M. P., Čeljo, A., & Zoroja, J. (2016). Technology Acceptance Model for Business Intelligence Systems: Preliminary Research. Procedia Computer Science, 100, 995–1001. https://doi.org/10.1016/j.procs.2016.09.270
Chang, Y., Wong, S. F., Lee, H., & Jeong, S. P. (2016). What motivates Chinese consumers to adopt FinTech services: A regulatory focus theory. ACM International Conference Proceeding Series, 17-19-Augu, 10–12. https://doi.org/10.1145/2971603.2971643
Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences (2nd ed). Routledge. https://doi.org/10.4324/9780203771587
Darmansyah, D., Fianto, B. A., Hendratmi, A., & Aziz, P. F. (2021). Factors determining behavioral intentions to use Islamic financial technology. Journal of Islamic Marketing, 12(4), 794–812. https://doi.org/10.1108/JIMA-12-2019-0252
Davis, F. D. (1986). A technology acceptance model for empirically testing new end-user information systems. Science. https://doi.org/10.1126/science.146.3652.1648
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User Acceptance of Computer Technology: A Comparison of Two Theoretical Models. Management Science, 35(8), 982–1003. https://doi.org/10.1287/mnsc.35.8.982
Dea Nabila, D., Selly Yulaikha, Maula Aji Hidayatullah, Elma Susanti, Megawati Oktaria, Meko Susanto, & Tri Suci Aryanti. (2023). THE ROLE AND POTENTIAL OF ISLAM CAPITAL MARKET IN SUSTAINABLE ECONOMIC DEVELOPMENT. Indonesian Journal of Multidisciplinary Sciences (IJoMS), 2(2), 322–334. https://doi.org/10.59066/ijoms.v2i2.360
Dika, P. R., & Kassim, A. A. M. (2021). Determinants of Investor Attitude in Investing in Sharia Shares in Indonesia. Al-Qanatir: International Journal of Islamic Studies, 23(2), 37–43.
Dinc, Y., Çetin, M., Bulut, M., & Jahangir, R. (2021). Islamic financial literacy scale: an amendment in the sphere of contemporary financial literacy. ISRA International Journal of Islamic Finance, 13(2), 251–263. https://doi.org/10.1108/IJIF-07-2020-0156
Diniyya, A. A., Aulia, M., & Wahyudi, R. (2020). Financial technology regulation in Malaysia and Indonesia: a comparative study. Ihtifaz: Journal of Islamic …. http://journal2.uad.ac.id/index.php/ijiefb/article/view/2703
Fayad, R., & Paper, D. (2015). The Technology Acceptance Model E-Commerce Extension: A Conceptual Framework. Procedia Economics and Finance, 26(961), 1000–1006. https://doi.org/10.1016/s2212-5671(15)00922-3
Fedorko, I., Bacik, R., & Gavurova, B. (2018). Technology acceptance model in e-commerce segment. Management and Marketing, 13(4), 1242–1256. https://doi.org/10.2478/mmcks-2018-0034
FSB. (2022). FinTech and Market Structure in the COVID-19 Pandemic. March, 1–30. www.fsb.org/emailalert
Gbongli, K., Xu, Y., & Amedjonekou, K. M. (2019). Extended Technology Acceptance Model to Predict Mobile-Based Money Acceptance and Sustainability: A Multi-Analytical Structural Equation Modeling and Neural Network Approach. Sustainability, 11(13), 3639. https://doi.org/10.3390/su11133639
Grabner-Kräuter, S., & Faullant, R. (2008). Consumer acceptance of internet banking: The influence of internet trust. International Journal of Bank Marketing, 26(7), 483–504. https://doi.org/10.1108/02652320810913855
Hair, J., & Alamer, A. (2022). Partial Least Squares Structural Equation Modeling (PLS-SEM) in second language and education research: Guidelines using an applied example. Research Methods in Applied Linguistics, 1(3), 100027. https://doi.org/10.1016/j.rmal.2022.100027
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. Springer International Publishing. https://doi.org/10.1007/978-3-030-80519-7
Hamzah, & Oktariatas Kesumayuda, A. (2019). International organization of securities commissions role on transactions in Indonesia Sharia Capital Market. International Journal of Innovation, Creativity and Change, 6(8), 156–164. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85073143651&partnerID=40&md5=f4cdc1c0ff6a58830400fbbb23251f5a
Haron, R., Abdul Subar, N., & Ibrahim, K. (2020). Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust. Islamic Economic Studies, 28(1), 3–23. https://doi.org/10.1108/ies-12-2019-0041
Haron, R., & Adeyemi, A. A. (2016). Islamic capital market and debt financing of shariah-compliant firms in Indonesia. Al-Shajarah, 21(Specialissue), 67–86.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Hu, Z., Ding, S., Li, S., Chen, L., & Yang, S. (2019). Adoption intention of fintech services for bank users: An empirical examination with an extended technology acceptance model. Symmetry, 11(3). https://doi.org/10.3390/sym11030340
Huei, C. T., Cheng, L. S., Seong, L. C., Khin, A. A., & Leh Bin, R. L. (2018). Preliminary study on consumer attitude towards fintech products and services in malaysia. International Journal of Engineering and Technology(UAE), 7(2), 166–169. https://doi.org/10.14419/ijet.v7i2.29.13310
Huh, H. J., Kim, T. (Terry), & Law, R. (2009). A comparison of competing theoretical models for understanding acceptance behavior of information systems in upscale hotels. International Journal of Hospitality Management, 28(1), 121–134. https://doi.org/10.1016/j.ijhm.2008.06.004
Ibrahim, R., Leng, N. S., Yusoff, R. C. M., Samy, G. N., Masrom, S., & Rizman, Z. I. (2018). E-learning acceptance based on technology acceptance model (TAM). Journal of Fundamental and Applied Sciences, 9(4S), 871. https://doi.org/10.4314/jfas.v9i4S.50
Ichwan, I., & Kasri, R. (2019). WHY ARE YOUTH INTENT ON INVESTING THROUGH PEER TO PEER LENDING? EVIDENCE FROM INDONESIA. Journal of Islamic Monetary Economics and Finance, 5(4), 741–762. https://doi.org/10.21098/jimf.v5i4.1157
Irum Saba, Rehana Kouser, & Imran Sharif Chaudhry. (2019). Fintech and Islamic Finance-challenges and Opportunities. Review of Economics and Development Studies, 5(4), 581–590. https://doi.org/10.26710/reads.v5i4.887
Judijanto, L., Sudarmanto, E., Harsono, I., Afandy, C., & Lucky, M. (2024). Identification of Research Trends in Islamic Financial Product Innovation. West Science Interdisciplinary Studies, 2(02), 467–474. https://doi.org/10.58812/wsis.v2i02.680
Kasri, R. A., & Chaerunnisa, S. R. (2022). The role of knowledge, trust, and religiosity in explaining the online cash waqf amongst Muslim millennials. Journal of Islamic Marketing, 13(6), 1334–1350. https://doi.org/10.1108/JIMA-04-2020-0101
Lockett, A., & Littler, D. (1997). The adoption of direct banking services. Journal of Marketing Management, 13(8), 791–811. https://doi.org/10.1080/0267257X.1997.9964512
Majid, R. (2021). The Role of Religiosity in Explaining the Intention to use Islamic FinTech Among MSME Actors. International Journal of Islamic Economics and Finance (IJIEF), 4(2), 207–232. https://doi.org/10.18196/ijief.v4i2.11833
Maniam, S. (2024). Determinants of Islamic fintech adoption: a systematic literature review. Journal of Islamic Marketing, 15(11), 2916–2936. https://doi.org/10.1108/JIMA-11-2023-0373
Marakarkandy, B., Yajnik, N., & Dasgupta, C. (2017). Enabling internet banking adoption. Journal of Enterprise Information Management, 30(2), 263–294. https://doi.org/10.1108/JEIM-10-2015-0094
Masih, M., Kamil, N. K. M., & Bacha, O. I. (2018). Issues in Islamic Equities: A Literature Survey. Emerging Markets Finance and Trade, 54(1), 1–26. https://doi.org/10.1080/1540496X.2016.1234370
Memon, M. A., Thurasamy, R., Ting, H., & Cheah, J.-H. (2025). PURPOSIVE SAMPLING: A REVIEW AND GUIDELINES FOR QUANTITATIVE RESEARCH. Journal of Applied Structural Equation Modeling, 9(1), 1–23. https://doi.org/10.47263/JASEM.9(1)01
Menne, F., Mardjuni, S., Yusuf, M., Ruslan, M., Arifuddin, A., & Iskandar, I. (2023). Sharia Economy, Islamic Financial Performance and Factors That Influence It—Evidence from Indonesia. Economies, 11(4), 111. https://doi.org/10.3390/economies11040111
Muslim, S. G. W. F. N. (2023). Regulation and Supervision of Islamic Banking in Indonesia. Indonesian Journal of Islamic Economics and Finance, 14, n(3), 123–140. https://doi.org/https://doi.org/10.4324/9781003393986-4?urlappend=%3Futm_source%3Dresearchgate.net%26utm_medium%3Darticle
Nurfadilah, D., & Samidi, S. (2021). HOW THE COVID-19 CRISIS IS AFFECTING CUSTOMERS’ INTENTION TO USE ISLAMIC FINTECH SERVICES: EVIDENCE FROM INDONESIA. Journal of Islamic Monetary Economics and Finance, 7, 83–114. https://doi.org/10.21098/jimf.v7i0.1318
Obaidullah, M. (2005). FINANCIAL. September.
Okcu, S., Hancerliogullari Koksalmis, G., Basak, E., & Calisir, F. (2019). Factors Affecting Intention to Use Big Data Tools: An Extended Technology Acceptance Model (pp. 401–416). https://doi.org/10.1007/978-3-030-03317-0_33
Panjwani, D. K., & Shili, D. N. (2020). The Impact of Fintech on Development of Islamic Banking Sector in the Contemporary World. Saudi Journal of Economics and Finance, 4(7), 346–350. https://doi.org/10.36348/sjef.2020.v04i07.006
Priyo Nugroho, A., & Marisa Apriliana, R. (2022). Islamic Financial Literacy and Intention to Use Gopay in Yogyakarta: Extended Theory of Acceptance Models. KnE Social Sciences, 329–338. https://doi.org/10.18502/kss.v7i10.11370
Pulungan, I., Ritonga, J., & ... (2024). Analysis Bibliometrics Application of Technology Acceptance Model in Islamic Fintech. Journal of Islamic …, 8–17. http://jurnal.uinsyahada.ac.id/index.php/jiftech/article/view/13960%0Ahttps://jurnal.uinsyahada.ac.id/index.php/jiftech/article/download/13960/6187
Putri, F. W., & Thayib. (2025). Akseleran as Social Entrepreneurship Fintech: Risk Mitigation Analysis and Sustainable Social Impact Development for MSMEs. Jurnal Manajemen Dan Inovasi (MANOVA), 8(2), 115–124. https://doi.org/10.15642/manova.v8i2.2093
Rabbani, M. R., Khan, S., & Thalassinos, E. I. (2020). FinTech, blockchain and Islamic finance: An extensive literature review. um.edu.mt. https://www.um.edu.mt/library/oar/handle/123456789/54860
Rahmi Fauzah, D., & Amaliyah, K. A. (2023). Impact of Financial Technology, Islamic Financial Literacy, and Behavioral Biases on Investment Decisions in the Sharia Capital Market. International Journal of Islamic Finance, 1(1), 1–19. https://doi.org/10.14421/ijif.v1i1.2039
Richter, N. F., Sinkovics, R. R., Ringle, C. M., & Schlägel, C. (2016). A critical look at the use of SEM in international business research. International Marketing Review, 33(3), 376–404. https://doi.org/10.1108/IMR-04-2014-0148
Schueffel, P. (2016). Taming the beast: A scientific definition of fintech. Journal of Innovation Management, 4(4), 32–54. https://doi.org/10.24840/2183-0606_004.004_0004
Selasi, D., Munajim, A., & Komala, S. I. (2022). The Digitization of Islamic Philanthrophy In the Islamic Capital Market in Indonesia. ICOBBA_2021. https://amcapress.amca2012.org/index.php/icobba2021/article/view/74
Septyanto, D., Sayidah, N., & Assagaf, A. (2021). The intention of investors in making investment decisions in Sharia Stocks: Empirical study in Indonesian. Academic Journal of Interdisciplinary Studies, 10(4), 141–153. https://doi.org/10.36941/AJIS-2021-0105
Setiawan, R. A. (2023). The Future of Islamic Banking and Finance in Indonesia. The Future of Islamic Banking and Finance in Indonesia. https://doi.org/10.4324/9781003393986
Shaikh, A. A., Glavee-Geo, R., & Karjaluoto, H. (2017). Exploring the nexus between financial sector reforms and the emergence of digital banking culture – Evidences from a developing country. Research in International Business and Finance, 42, 1030–1039. https://doi.org/10.1016/j.ribaf.2017.07.039
Shaikh, I. M., Qureshi, M. A., Noordin, K., Shaikh, J. M., Khan, A., & Shahbaz, M. S. (2020). Acceptance of Islamic financial technology (FinTech) banking services by Malaysian users: an extension of technology acceptance model. Foresight, 22(3), 367–383. https://doi.org/10.1108/FS-12-2019-0105
Sheila Pinasti, U., Yuli Astuti, M., Rakhmawati, R., Achiria, S., & Dwi Pusparini, M. (2022). Innovation Features of Digital Literacy Services in Shariah Online Trading System (Sots) Application in an Effort to Minimize the Risk of Investing. KnE Social Sciences, 248–260. https://doi.org/10.18502/kss.v7i10.11363
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J.-H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: guidelines for using PLSpredict. European Journal of Marketing, 53(11), 2322–2347. https://doi.org/10.1108/EJM-02-2019-0189
Tun-Pin, Chong, Keng-Soon, C., Choo Yen-San, W., Pui-Yee, Y., Hong-Leong, C., & Teh Shwu-Shing, J. (2019). an Adoption of Fintech Service in Malaysia. South East Asia Journal of Contemporary Business, Economics and Law, 18(5), 134–147.
Turan, A., Tunç, A. Ö., & Zehir, C. (2015). A Theoretical Model Proposal: Personal Innovativeness and User Involvement as Antecedents of Unified Theory of Acceptance and Use of Technology. Procedia - Social and Behavioral Sciences, 210, 43–51. https://doi.org/10.1016/j.sbspro.2015.11.327
Usman, B., Hasnam, M. G., Nurazi, R., Baihaqi, & Aujirapongpan, S. (2024). Exploring investor attention in Shariah markets, macroeconomic influences, and corporate performance: Insights from Indonesia. Social Sciences & Humanities Open, 10(July), 101015. https://doi.org/10.1016/j.ssaho.2024.101015
Usman, H., Mulia, D., Chairy, C., & Widowati, N. (2020). Integrating trust, religiosity and image into technology acceptance model: the case of the Islamic philanthropy in Indonesia. https://doi.org/10.1108/JIMA-01-2020-0020
Venkatesh, V., & Bala, H. (2008). Technology acceptance model 3 and a research agenda on interventions. Decision Sciences, 39(2), 273–315. https://doi.org/10.1111/j.1540-5915.2008.00192.x
Venkatesh, V., & Davis, F. D. (2000). A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies. Management Science, 46(2), 186–204. https://doi.org/10.1287/mnsc.46.2.186.11926
Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly: Management Information Systems, 27(3), 425–478. https://doi.org/10.2307/30036540
Wang, Y. S., Wang, Y. M., Lin, H. H., & Tang, T. I. (2003). Determinants of user acceptance of Internet banking: An empirical study. International Journal of Service Industry Management, 14(5), 501–519. https://doi.org/10.1108/09564230310500192
Yusfiarto, R., Nugraha, S. S., Mutmainah, L., Berakon, I., Sunarsih, S., & Nurdany, A. (2023). Examining Islamic capital market adoption from a socio-psychological perspective and Islamic financial literacy. Journal of Islamic Accounting and Business Research, 14(4), 574–594. https://doi.org/10.1108/JIABR-02-2022-0037
Zandhessami, H., & Geranmayeh, P. (2014). Determinants of user acceptance of internet banking: An empirical study. Management Science Letters, 4(7), 1369–1374. https://doi.org/10.5267/j.msl.2014.6.035
