Empowering Loan Awareness: The Role of Sharī‘ah Financial Literacy, Blockchain, and Fintech Trust
Abstract
Research Originality. Despite extensive research on Sharī‘ah financial literacy and fintech trust, their combined impact on illegal loan awareness remains unexplored. This study bridges that gap by analyzing their interaction in financial decision-making amid rising predatory lending, offering a novel perspective on their protective role against unethical financial practices
Research Objectives. This study aims to examine the effect of Sharī‘ah financial literacy on awareness of illegal online loans, with blockchain technology understanding and Sharī‘ah fintech trust as mediating variables.
Research Methods. An associative quantitative approach was employed, utilizing a survey of 519 Indonesian millennial Muslims, selected through simple random sampling. Data analysis was conducted using structural equation modeling (SEM) to explore the relationships among variables.
Empirical Results. The findings indicate that Sharī‘ah financial literacy significantly influences blockchain understanding, fintech trust, and awareness of illegal online loans. Blockchain understanding enhances fintech trust but does not directly impact loan awareness, whereas trust in Sharī‘ah fintech positively affects awareness of illegal online lending risks.
Implications. This study underscores the importance of improving Sharī‘ah financial literacy and blockchain understanding to strengthen consumer trust in Sharī‘ah fintech and raise awareness of illegal online lending risks. However, further research with broader samples is recommended to validate these findings.
JEL Classification: G41, G28, O33, Z12, D83
How to Cite:
Sumar’in, Ardi. P, Sumin, & Kusnadi, I. (2025). Empowering Loan Awareness: The Role of Sharī‘ah Financial Literacy, Blockchain, and Fintech Trust. Signifikan: Jurnal Ilmu Ekonomi, 14(1), 179-196. https://doi.org/10.15408/sjie.v14i1.44735.
Keywords
References
Aji, H. M., Berakon, I., & Md Husin, M. (2020). COVID-19 and e-wallet usage intention: A multigroup analysis between Indonesia and Malaysia. Cogent Business & Management, 7(1), 1804181. https://doi.org/10.1080/23311975.2020.1804181
Alaeddin, O., Al Dakash, M., & Azrak, T. (2021). Implementing the blockchain technology in islamic financial industry: opportunities and challenges. Journal of Information Technology Management, 13(3), 99–115. DOI:10.22059/jitm.2021.83116
Alam, N., Gupta, L., & Shanmugam, B. (2017). Prohibition of Riba and Gharar in Islamic Banking. In Islamic Finance (pp. 35–53). Springer International Publishing. https://doi.org/10.1007/978-3-319-66559-7
Alam, N., Gupta, L., Zameni, A., Alam, N., Gupta, L., & Zameni, A. (2019). Application of blockchain in Islamic finance landscape. Fintech and Islamic Finance: Digitalization, Development and Disruption, 81–98. DOI:10.1007/978-3-030-24666-2
Andreou, P. C., & Anyfantaki, S. (2021). Financial literacy and its influence on internet banking behavior. European Management Journal, 39(5), 658–674. DOI: https://doi.org/10.1016/j.emj.2021.01.005
Angkasa, A., Wamafma, F., Juanda, O., & Nunna, B. P. (2023). Illegal Online Loans in Indonesia: Between the Law Enforcement and Protection of Victim. Lex Scientia Law Review, 7(1), 119–178. DOI:10.15294/lesrev.v7i1.67558
Apriantoro, M. S., Herviana, J., Yayuli, Y., & Suratno, S. (2023). Sharia financial literacy: Research trends and directions for future inquiry. Journal of Islamic Economic Laws, 6(2), 19–40. DOI: 10.23917/jisel.v6i2.22396
Brands, J., & Van Doorn, J. (2022). The measurement, intensity and determinants of fear of cybercrime: A systematic review. Computers in Human Behavior, 127, 107082. DOI:10.1016/j.chb.2021.107082
Broadhurst, R. (2006). Developments in the global law enforcement of cyber‐crime. Policing: An International Journal of Police Strategies & Management, 29(3), 408–433. DOI:10.1108/13639510610684674
Candra Sari, R., Rika Fatimah, P. L., Ilyana, S., & Dwi Hermawan, H. (2022). Augmented reality (AR)-based sharia financial literacy system (AR-SFLS): a new approach to virtual sharia financial socialization for young learners. International Journal of Islamic and Middle Eastern Finance and Management, 15(1), 48–65. DOI: https://doi.org/10.1108/IMEFM-08-2020-0424
Chen, Q., Yu, J., & Li, X. (2024). Research on the Reform Path of Logistics Comprehensive Practical Training Curriculum under the Background of Industry-Education Integration. Curriculum and Teaching Methodology, 7(2), 7–16. DOI:10.62517/jiem.202303205
Dewi, M. K., & Ferdian, I. R. (2021). Enhancing Islamic financial literacy through community-based workshops: a transtheoretical model. Journal of Islamic Accounting and Business Research, 12(5), 729–747. DOI: https://doi.org/10.1108/JIABR-06-2020-0184
Hakim, R., & Irawan, M. D. (2019). Islamic Rulings and Financial Technology (Fintech): An Analysis on the Relevance and Implications. Madania: Jurnal Kajian Keislaman, 23(2), 137–146. DOI http://dx.doi.org/10.29300/madania.v23i2.2313
Hermantoro, B. (2023). Optimizing Financial Technology Literacy in Minimizing Phishing Threats (Case Study of Indonesian Sharia Bank Customers). Proceeding of International Conference on Islamic Philantrophy, 1(1), 38–52. DOI:10.24090/icip.v1i1.302
Huang, R. H. (2018). Online P2P lending and regulatory responses in China: Opportunities and challenges. European Business Organization Law Review, 19, 63–92. DOI:10.1007/s40804-018-0100-z
Hua, X., & Huang, Y. (2021). Understanding China’s fintech sector: development, impacts and risks. The European Journal of Finance, 27(4–5), 321–333. https://doi.org/10.1080/1351847X.2020.1811131
Indrianti, L. P. (2022). Strategies to Minimize Illegal Digital Lending Practices During The Pandemic Through Islamic Financial Literacy. Review of Islamic Economics and Finance, 4(2), 167–180.
DOI: https://doi.org/10.17509/rief.v4i2.42184
Javaid, M., Haleem, A., Singh, R. P., Suman, R., & Khan, S. (2022). A review of Blockchain Technology applications for financial services. BenchCouncil Transactions on Benchmarks, Standards and Evaluations, 2(3), 100073. DOI: https://doi.org/10.1016/j.betse.2022.100073
Kabir, M. R., Islam, M. A., Marniati, & Herawati. (2021). Application of blockchain for supply chain financing: explaining the drivers using SEM. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 167. https://doi.org/10.3390/joitmc7030167
Kitchin, R. (2016). Getting smarter about smart cities: Improving data privacy and data security. https://doi.org/10.3390/s22239338
Lewis, J. (2011). Grand Fraud: New Capitalism, Fantasy and Financial Crisis. In Crisis in the Global Mediasphere: Desire, Displeasure and Cultural Transformation (pp. 52–92). Springer. DOI:10.1057/9780230297708
Mahrizal, M., Judijanto, L., Indrapraja, R., & Pujianto, D. (2023). The Influence of QRIS Digitalization, Technology and Digitalization Lifestyle, Digital Financial Literacy, and Financial Inclusion On Bank Customers Decision. Jurnal Informasi Dan Teknologi, 124–129. DOI: https://doi.org/10.60083/jidt.v5i4.426
Mohd Nor, S., Abdul-Majid, M., & Esrati, S. N. (2021). The role of blockchain technology in enhancing Islamic social finance: the case of Zakah management in Malaysia. Foresight, 23(5), 509–527. DOI:10.1108/FS-06-2020-0058
Mougayar, W. (2016). The business blockchain: promise, practice, and application of the next Internet technology. John Wiley & Sons. DOI: 10.4236/ajibm.2020.102019
Murinde, V., Rizopoulos, E., & Zachariadis, M. (2022). The impact of the FinTech revolution on the future of banking: Opportunities and risks. International Review of Financial Analysis, 81, 102103. DOI:10.1016/j.irfa.2022.102103
Noor, A., Ahamat, H., Marzuki, I., Wulandari, D., Junaidi, A. A., Lisdiyono, E., & Trisnawati, B. (2022). Regulation and consumer protection of fintech in Indonesia: The case of Islamic fintech lending. Linguistics and Culture Review, 6(S3), 49–63. DOI:10.21744/lingcure.v6nS3.1938
Nuraini, I., Fitri, L. E., & Lubis, P. (2024). The Influence of Knowledge, Lifestyle, and Religiosity of Jambi University FEB Students on Decisions to Use Fintech (Online Loans) from an Islamic Economics Perspective. MONEY: Journal of Financial and Islamic Banking, 2(2), 120–130. DOI: https://doi.org/10.31004/money.v2i2.23943
Rabbani, M. R., Khan, S., & Thalassinos, E. I. (2020). FinTech, blockchain and Islamic finance: An extensive literature review. DOI:10.35808/ijeba/444
Rahim, N. F., Bakri, M. H., Fianto, B. A., Zainal, N., & Hussein Al Shami, S. A. (2023). Measurement and structural modelling on factors of Islamic Fintech adoption among millennials in Malaysia. Journal of Islamic Marketing, 14(6), 1463–1487. 10.1108/JIMA-09-2020-0279
Rindiantika, W. D., Mufid, F. L., & Wahyuningtyas, Y. W. (2023). Perlindungan Hukum Terhadap Data Pribadi bagi Nasabah Pinjaman Online. WELFARE STATE Jurnal Hukum, 2(2), 243–270. DOI: https://doi.org/10.56013/welfarestate.v2i2.2416
Safina, L., & Oseni, U. A. (2021). Utilizing Blockchain Technology for Post-Trade Securities Settlement: A Framework for Islamic Capital Markets in the GCC Region. Fintech, Digital Currency and the Future of Islamic Finance: Strategic, Regulatory and Adoption Issues in the Gulf Cooperation Council, 187–207. DOI:10.1007/978-3-030-49248-9_10
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. DOI:10.1108/FS-12-2019-0105
Song, Y., Sun, C., Peng, Y., Zeng, Y., & Sun, B. (2022). Research on multidimensional trust evaluation mechanism of fintech based on blockchain. IEEE Access, 10, 57025–57036. https://doi.org/10.3390/fi16030106
Subagiyo, D. T., Gestora, L. R., & Sulistiyo, S. (2022). Characteristic of illegal online loans in Indonesia. Indonesia Private Law Review, 3(1), 69–84. DOI: https://doi.org/10.25041/iplr.v3i1.2594
Viennet, R., & Pont, B. (2017). Education policy implementation: A literature review and proposed framework. DOI:10.1787/fc467a64-en
Weyant, E. (2022). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches: by John W. Creswell and J. David Creswell, Los Angeles, CA: SAGE, 2018, Taylor & Francis. DOI:10.1002/nha3.20258
Xu, D., Tang, S., & Guttman, D. (2019). China’s campaign-style Internet finance governance: Causes, effects, and lessons learned for new information-based approaches to governance. Computer Law & Security Review, 35(1), 3–14. DOI:10.1016/j.clsr.2018.11.002
Zevender, P. S., Lathifahturahmah, L., Rohmawati, L., Tasiman, T., & Widayati, W. (2022). Development And Impact Of Financial Technology (Fintech) On The Islamic Financial Industry Perumda BPR Majalengka. Return: Study of Management, Economic and Bussines, 1(4), 169–175. DOI:10.57096/return.v1i4.59
DOI: 10.15408/sjie.v14i1.44735
Refbacks
- There are currently no refbacks.
