The Influence of Sharia Financial Literacy on the Decision to Use Sharia Fintech Services by Generation Z In Indonesia

Abstract

The development of Sharia-based financial technology (fintech) in Indonesia has shown rapid growth in line with the increasing number of fintech providers registered with the Financial Services Authority and the expanding penetration of digital financial services among young people. Generation Z, which represents almost one-third of the Indonesian population, plays a key role as the main user of digital technology; however, the adoption of Sharia fintech services and the level of Sharia financial literacy in this group remain relatively low. This study aims to analyze the effect of Sharia financial literacy on the use of Sharia fintech services among Generation Z in Indonesia. A quantitative research approach was employed using an online questionnaire survey distributed to 150 Generation Z respondents. The data were analyzed using descriptive statistics and simple linear regression. The results indicate that both Sharia financial literacy and the use of Sharia fintech services are generally at low to moderate levels, and that Sharia financial literacy does not have a significant effect on the use of Sharia fintech services (p > 0.05). These findings suggest that Sharia financial knowledge alone is not sufficient to drive adoption behavior, and that other factors—such as perceived ease of use, perceived usefulness, trust, and social influence—are likely to play a more dominant role in shaping Generation Z’s decisions to use Sharia fintech services. The practical implications of this study highlight the need for a more comprehensive approach to developing Sharia fintech, not only by enhancing Sharia financial literacy, but also by improving the quality of digital services, designing features that are relevant to digital lifestyles, and strengthening users’ sense of security and trust.