The Impact Of Digital Transformation And Payment Technology Innovation On The Disruption Of Islamic Banking With Fintech As A Mesiating Variable

Abstract

Currently, Indonesia is experiencing rapid technological advancement in the era of the Industrial Revolution 4.0, which has triggered a wave of disruption that is reshaping structures across various sectors, including the Islamic banking industry. This study aims to examine how digital transformation and payment technology innovation influence the disruption of Islamic banking, as well as to test the role of fintech as a mediating variable that may strengthen this relationship. The research was conducted in Bandar Lampung City, involving 97 respondents who use Islamic mobile banking services. This study employs a descriptive quantitative approach. Data were collected through online questionnaire distribution, and the analysis was conducted using SEM-PLS (Structural Equation Modeling–Partial Least Squares). The findings reveal that: (1) digital transformation has a positive and significant effect on the disruption of Islamic banking; (2) digital transformation has a positive and significant effect on fintech; (3) payment technology innovation has a positive and significant effect on the disruption of Islamic banking; (4) payment technology innovation has a positive and significant effect on fintech; (5) the disruption of Islamic banking has a positive and significant effect on fintech; (6) digital transformation has a positive and significant effect on the disruption of Islamic banking with fintech as a mediating variable; and (7) payment technology innovation has a positive and significant effect on the disruption of Islamic banking with fintech as a mediating variable.