Role Of Islamic Financial Technology on Sustainable Income with The Mediating Effect of Financial Literacy: Case Study of Pakistan

Ali Tariq

Authors

Ali Tariq Student, Department of Business Administration Indus University, Karachi, Pakistan Author https://orcid.org/0009-0000-6823-1946

Keywords:

Fintech, mobile money, crypto currency, peer-to-peer lending, financial literacy, sustainable income

Abstract

Background of the Study: This quantitative study aims 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 mediators or not. Various challenges occur during this research, especially in data collection, but this study seeks to explore these challenges.

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

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

Conclusion: Financial literacy was crucial in this study as a mediator, which is considered an essential 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 that the population of Pakistan needs to be made aware of the characteristics of Islamic FinTech. Financial sectors may use this research's results to improve their financial literacy strategies. Because of a lack of financial education, there is a widespread need to understand financial technologies, applications, and services.

Author Biography

Ali Tariq, Student, Department of Business Administration Indus University, Karachi, Pakistan

Student, Department of Business Administration

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