TRANSFORMATION OF SHARIA FINANCING DECISION-MAKING IN THE FINTECH ERA

Abstract

This study examines the gap between the considerable demographic potential of Indonesian Muslims and the low adoption rate of Islamic financing, especially amid advances in financial technology. Low Islamic financial literacy, uneducated promotions, and an unformed trust in the consistency of Sharia principles in digital services cause this gap. Using a descriptive qualitative approach based on secondary data and the Tawhid String Relationship (TSR) framework, this study places knowledge (Ө), action (xӨ), and trust as the main determinants in financing decisions. The results show that strong knowledge drives actions that align with Islamic values, while transformative and trust-building promotions increase preference for digital sharia services. Theoretical implications reinforce the role of TSR in explaining value-based decision-making. Practically, this research suggests the importance of value-based education and transparency-based services. The novelty of the research lies in integrating the TSR concept with the issue of digital trust and the behavior of the younger generation in the context of Sharia fintech.