Factors Affect Adopting Islamic Banking and Finance in Libya: The Moderating Effect of Fin-Tech

Abstract

Abstract: The aim of this study is to explore the role of behavioral factors on the adoption of Islamic banking and finance among users of banking services in Tripoli, Libya, which includes; Knowledge and Awareness, Attitude, Subjective Norms, Perceived behavioural control, and Religiosity. In addition, this study investigate the moderating effect of Fin-Tech technology on the relationship between the factors that affects the adoption of Islamic banking and finance. To achieve this purpose, five theories were reviewed, namely, Social Cognitive Theory, Diffusion of innovations, the theory of reasoned action, Theory of Planned Behaviour, and Technology Acceptance Model. In addition to the theories, recent literature published in academic journals were reviewed to justify the selection of the variables. In this regard, quantitative research methods were applied by using the means of questionnaire survey, which was distributed to 408 customers of banking services in Tripoli, Libya. To conduct data analysis, IBM SPSS 26.0 and SMART PLS 3.3 were utilized. The results of this study showed that there is a significant relationship between Knowledge and Awareness, Attitude, Subjective Norms, and Religiosity from hand, and IBF adoption in Libya from another hand. But unlike the majority of the published literature, Perceived behavioural control was found to be insignificant with IBF adoption in Libya. In addition, FIN-Tech technology found to have significant moderating influence on the relationship between Knowledge and Awareness, Attitude, and Perceived Behavioural Control with IBF adoption. However, Fin-Tech did not play a signficiant moderating influence on the relationship between Subjective Norms and Religiosity with IBF adoption. The implications of this study is wide, for example, with clear understanding and awareness regarding Islamic banks, users will likely accept IBF, therefore informed promotion is essential for Islamic banks to create knowledge and awareness.