The Role of Financial Technology in Mediating the Influence of Islamic Financial Literacy on Islamic Financial Inclusion in Banda Aceh City

Abstract

This research aims to test the role of Financial Technology (Fintech) in mediating the Islamic Financial Literacy (IFL) influence on Islamic financial inclusion (IFI) in Banda Aceh City, Indonesia. The research population was the people of Banda Aceh, which is 252,899 people. The sample amounted to 300 people, who were the number productive age population in the age range of 15-64 years in Banda Aceh City. Data were collected (primary data) taken by distributing questionnaires to all respondents and were tested using SEM-AMOS. The results reveal that IFL influences Fintech, IFL influences Islamic IFI, Fintech influences IFI, and IFL influences IFI through Fintech. The results also prove that Fintech in the research model functions as a partial mediation, which means that IFL can affect IFI directly or through Fintech mediators. The findings at the same time prove that the model of increasing IFI is a function of increasing IFL and increasing the use of Fintech.