Islamic banking customers’ intention to adopt fintech in Sri Lanka: a triangulated approach using PLS-SEM and fsQCA

Purpose The purpose of this study is to examine the determinants that impact the inclination to embrace financial technology (fintech) among Islamic banking customers in Sri Lanka by using the extended Unified Theory of Acceptance and Use of Technology (UTAUT). Design/methodology/approach This study used a quantitative, self-administered questionnaire that applied a convenience sampling strategy to collect 393 valid responses from customers who used Islamic banking products in Sri Lanka. The data were analysed in two stages: Partial Least Squares Structural Equation Modelling (PLS-SEM) using SmartPLS 4 and fuzzy-set qualitative comparative analysis (fsQCA). Findings The PLS-SEM results indicate that performance expectancy, effort expectancy, perceived value, social influence, privacy enablers, system quality, personal innovativeness and facilitating conditions have positive and significant impacts. By contrast, perceived risk negatively and significantly impacts the adoption intention of fintech among Islamic banking customers. Personal innovativeness moderated only the relationship between performance expectancy and adoption intention. By contrast, the results obtained using fsQCA offer a distinct explanation and enhanced understanding of the propensity of Islamic banking customers to adopt fintech services by uncovering the intricate connections among various combinations of factors that precede adoption intention. This facilitates comprehension of the factors influencing the intention of such customers to adopt fintech in Sri Lanka. Practical implications This study provides significant insights for Islamic financial institutions offering fintech service strategies to enhance fintech adoption among their customers. This assists these institutions in determining their objectives to promote fintech adoption among customers in Sri Lanka. In addition, regulators can gain an understanding of their role in establishing user-friendly and adaptable fintech services for individual users. Originality/value This study contributes to the expanding body of research on fintech adoption in the Islamic banking sector, specifically in Sri Lanka. Sri Lanka has been slow to adopt fintech services as a developing country for Islamic banking. This study successfully demonstrates the effectiveness of the proposed theoretical framework in identifying the factors underlying slow adoption. To the best of the authors’ knowledge, this study is the first to use fsQCA with PLS-SEM to examine Sri Lanka’s intention to adopt fintech.