Determinants of Fintech Adoption among Family Takaful Agents: A TAM-Based Secondary Data Analysis

Abstract

The integration of financial technology (FinTech) into the Family Takaful industry presents unique opportunities and challenges, particularly for agents who must balance technological innovation with adherence to Shariah principles. This study introduces an adapted version of the Technology Acceptance Model (TAM), incorporating Shariah compliance as a core construct, offering the first theoretical framework tailored specifically to Family Takaful agents. Drawing on secondary data from academic journals, regulatory reports, and industry publications between 2018 and 2023, this research identifies key determinants that influence the adoption of FinTech among agents in Southeast Asia and the Gulf Cooperation Council (GCC) region. The findings reveal that perceived usefulness is the strongest predictor of adoption (β = 0.58, p < 0.01), driven by efficiency gains such as faster policy processing and better customer engagement. However, Shariah compliance concerns significantly hinder adoption, with 75% of agents prioritizing certified platforms and 34% expressing distrust in uncertified AI- or blockchain-based tools. Institutional support, particularly through training programmes, increased the likelihood of adoption by 25% in Malaysia, whereas fragmented regulatory landscapes in the GCC contributed to lower adoption rates (42% vs. 65% in Southeast Asia). This study contributes to both theory and practice by extending the TAM and UTAUT frameworks to include religious compliance factors, proposing a TAM-Islamic model, and identifying actionable strategies for stakeholders. Recommendations include designing age-inclusive digital interfaces, standardizing Shariah certification for InsurTech tools, and harmonizing cross-border regulatory policies. The findings underscore the need for collaboration between Takaful operators, Islamic scholars, and regulators to accelerate digital transformation while maintaining ethical and religious integrity.