ROLE OF ISLAMIC FINANCIAL TECHNOLOGY ON SUSTAINABLE INCOME WITH THE MEDIATING EFFECT OF FINANCIAL LITERACY: CASE STUDY OF PAKISTAN

Ali Tariq

Authors

Ali Tariq Indus University, Karachi Author

Abstract

Purpose

The purpose of this quantitative study is to understand the Role of Islamic Financial Technology on Sustainable Income with the Mediating Effect of Financial Literacy. This research focused on how entrepreneurs engaged in FinTech and sustainable their income, as well as financial literacy work as a mediator or not. There are various challenges occur during this research, especially in data collection but this study seeks to explore these challenges.

Methodology

Data have been collected from 200 respondents of different age groups working as entrepreneurs and investors. The questionnaire survey has been used for constructing crucial variables such as mobile money, crowdfunding, peer-to-peer lending, financial literacy, and sustainable income. Research philosophy is positivism, the deductive approach has been used. The time horizon has a cross-sectional pattern.

Findings

The results of this study support an ironic and exact picture of the variables which are influencing or not sustainable income in the present financial literacy as a mediator. The provided results revealed that the obtained PLS model has an adequate amount of reliability and validity. All the independent variables have recognized significant relationships towards the dependent variable, but some of them are not supporting the dependent variable.

Originality

The role of financial literacy was found very crucial in this study as a mediator which is considered an important determinant among observed variables (crowdfunding, peer-to-peer lending, and mobile money) of Islamic FinTech and sustainable income. Besides that, the research has clarified with the existing data the population of Pakistan is not completely aware of the characteristics of Islamic FinTech.

Managerial Implications

Financial Sectors may use the result of this research for improving their strategies toward financial literacy. Because lack of financial education, the population has not understood financial technologies, applications, and services.