Understanding the Adoption of Sharia Digital Banking: The Role of Functional and Psychological Barriers, Islamic Financial Literacy, and Subjective Well-Being
Yudha Dwi Nugraha, Rezi Muhamad Taufik Permana, Nindya Saraswati, Dara Puspa Kenanga, Rifa Khairunnisa

Universitas Islam Bandung

Abstract

This study explores the adoption of Sharia Digital Banking Apps in Indonesia by developing a comprehensive structural model grounded in Innovation Resistance Theory (IRT). With the integration of Information and Communication Technology, smart devices, and digital payment systems, Sharia Digital Banks are increasingly seen as efficient platforms for managing daily financial transactions. However, despite their potential, consumer adoption remains limited due to various perceived barriers.
This research focuses on identifying and analysing the dynamics among value, image, risk, and usage barriers, along with Islamic financial literacy, behavioural intention, actual adoption, and subjective well-being. A quantitative approach was employed using purposive sampling and data collected through online surveys. Structural Equation Modeling with PLS-SEM was used to test the proposed model.
Findings reveal that value and image barriers significantly deter adoption intention, while risk barriers negatively affect both intention and actual usage. Conversely, Islamic financial literacy positively influences behavioural intention, helping reduce resistance. The intention-adoption relationship aligns with the Theory of Planned Behaviour, while actual adoption was found to lower usage barriers and improve subjective well-being. In contrast, usage barriers negatively impacted well-being, underlining the importance of post-adoption experience.
This study contributes theoretically by integrating resistance, adoption, and well-being frameworks in the context of Islamic digital finance. Practically, it offers insights for policymakers, financial educators, and service providers to enhance consumer trust, literacy, and engagement. The outcomes are intended for international journal publication, presentation at the 8th Bandung Annual International Conference (BAIC), and registration as intellectual property.

Keywords: Islamic financial literacy, functional barriers, psychological barriers, user adoption, subjective well-being.

Topic: Marketing and Fintech in Terms of Islamic Perspective