Abstract
Islamic fintech holds significant promise for promoting financial inclusion among unbanked micro-entrepreneurs in emerging economies. This study investigates the determinants of Islamic fintech adoption among unbanked micro-entrepreneurs in rural Bangladesh by extending the Unified Theory of Acceptance and Use of Technology (UTAUT) model to incorporate Sharia compliance perception, structural assurance, and religiosity. Utilizing a primary dataset gathered from 384 rural micro-entrepreneurs through structured questionnaires, the empirical analysis employs Structural Equation Modeling based on Partial Least Squares (PLS-SEM). The findings reveal that Performance Expectancy, Effort Expectancy, Social Influence, and Sharia Compliance Perception exert a statistically significant positive effect on behavioral intention to adopt Islamic fintech services. Furthermore, trust served as a vital mediator between structural assurance, religiosity, and adoption intention. Surprisingly, Facilitating Conditions demonstrated a weaker direct impact on adoption, mediated heavily by perceived ease of use and structural support. These results underscore the crucial role of faith-aligned financial technology and institutional governance in fostering financial inclusion among underserved rural populations. The study provides valuable strategic insights for Islamic fintech developers, financial regulators, and Islamic microfinance institutions seeking to design culturally resonant and Sharia-compliant digital financial products in developing nations.
