A Preliminary Investigation: Examining The Utilisation of Islamic Fintech Credit by Asnaf Microentrepreneurs, Their Access to Microfinance Through Zakat Institutions, and its Impact on Income and Subjective Well-Being

Abstract

This study explores the influence of extended UTAUT2 factors on Islamic FinTech credit adoption amongst Asnaf microentrepreneurs. The paper aims to present the research model and the result of a preliminary study on factors influencing the adoption of one of the two types of Islamic FinTech credit provided by Zakat institutions among Asnaf microentrepreneurs in Selangor. Psychometric testing and assessment were introduced in the research as a mechanism to improve the zakat distribution among entrepreneurs. A pilot study was conducted in which 32 samples were disseminated using an online questionnaire via Teraju Ekonomi Asnaf (TERAS). The pilot study aims to assess the validity and reliability of the instruments intended for the primary research project. The PLS-SEM measurement model was employed to evaluate the reliability and validity of the items in this study. Prior to this, the researchers have sought expert validation and pre-testing were conducted among 30 respondents. The result shows that all 53 measuring instruments are reliable and the data for pilot study indicated strong evidence of rational validity. As a result, based on the preliminary findings, it is recommended for Zakat institutions to adopt psychometric scoring for an efficient Zakat distribution, perhaps catering towards bigger ticket size applications amidst the positive response of Asnaf on answering psychometric assessment.