Digital Shariah Banking System on Cash Waqf in Indonesia: International Journal of Business and Social Dynamics, 01(01),01-27

Patria Yunita; Azmi Ismail

Authors

Patria Yunita Universitas PTIQ Jakarta
Azmi Ismail Universitas PTIQ Jakarta

Keywords:

Digital Shariah Banking System (DSBS), Islamic Financial Inclussion, Islamic Economic Literation, Digitalization Index

Abstract

The concept of cash waqf has significantly progressed, incorporating more modern and efficient models. Today, cash waqf can be processed through digital platforms that are fully integrated with Sharia compliant banking system. Eventhough Indonesia Muslims recognize cash waqf as a sustainable investment, data shown only 47% expressed strong willingness to donate. Research shows approximately only 45% of Indonesia Muslims were fully aware of the procedures to donate cash waqf through digitalization. This study aims to examine how Digital Shariah Banking System (DSBS) impact the decision making process of Muslims in Indonesia to involve in cash waqf. The reaction of Indonesia Muslims to the Digital Shariah Banking System (DSBS) on cash waqf reflects a combination of growing interest, literacy and digital awareness. The research employs Partial Least Squares-Structural Equation Modeling (PLS SEM) constructed by analyzing the influence of Islamic economic literation, Islamic financial inclusion, digitalization index toward intention to use digital waqf. The data was generated by survey to 205 Indonesian Muslims from all generation. The findings indicate that digitalization index and Islamic financial inclusion influences the intention to use digital waqf. Meanwhile, experience, gender and Islamic economic literation does not significantly influence the Intention to use digital waqf. Our recommendation for Indonesia waqf regulators are to promote infrastructure of digitalization around region in Indonesia to strengthen awareness of digital waqf platforms and enhance accessibility to digital platforms.

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