Dynamics of Islamic Banks in the Digital Transformation Era
Abstract
Islamic banking has developed significantly over the past four decades and today has a global reach. One of the factors hindering Islamic banking in the coming decades is in the realm of financial technology (known as Fintech). Traditional financial methods will be abandoned in the digital age. This study will discuss the topic of financial innovation and technology in Islamic finance, as well as its Islamic parameters. This study employs qualitative secondary techniques using inductive methods to investigate primary data and on the topic, as well as descriptive methods to characterize the growth of fintech in the operations and practices of the Islamic banking industry. Based on the results of the study in this study, all innovations in Islamic finance need to be appreciated and can be seen as benefits (maslahah) for users (customers) and the financial industry as a whole. The results of this study also emphasize the relationship between fintech and shariah compliance which then recommends putting in place a comprehensive shariah governance framework to ensure that fintech operations are fully shariah compliant. Furthermore, authorities and regulators should adopt shariah standards that specifically identify shariah identifications that are important to fintechs.
Keywords
Full Text:
PDFReferences
Alfonso, V., Boar, C., Frost, J., Gambacorta, L., & Liu, J. 2021. E-commerce in the pandemic and beyond. BIS Bulletin: 36.
Andaleeb, U., Mishra, A. K. 2016. “Equity Crowdfunding in Shariah Compliant Nations: An Outlook in the Middle-East.” Global Journal of Finance and Management. 8(1).
Arianto, B. 2020. Pengembangan UMKM Digital di Masa Pandemi Covid-19. ATRABIS: Jurnal Administrasi Bisnis, 6(2), pp 233–247.
Auer, R., Cornelli, G., & Frost, J. 2020. Covid-19, cash and the future of payments. BIS Bulletin: 3.
Cziesla, T. 2014. A Literature Review on Digital Transformation in the Financial Service Industry. In Proceedings of the Bled eConference. Bled, Slovenia.
Deng, X., Huang, Z., & Cheng, X. 2019. FinTech and Sustainable Development: Evidence from China Based on P2P Data. 11, 6434.
Dermine, J. 2016. Digital Banking and Market Disruption: A Sense of Dejà Vu? Financial Stability Review. Banque de France. pp 17-24.
Didier, T., Feyen, E., Llovet Montanes, R., & Ardic Alper, O. A. 2021 Global Patterns of Fintech Activity and Enabling Factors. World Bank Group Fintech and the Future of Finance report.
Dz., A. S. 2018. Inklusi Keuangan Perbankan Syariah Berbasis Digital-Banking: Optimalisasi dan Tantangan. Al-Amwal : Jurnal Ekonomi Dan Perbankan Syari’ah , 10 (1), 63. https://doi.org/10.24235/amwal.v10i1.2813
Gaib, D. N. 2020. Dinamika Hukum Perbankan Digital di Indonesia. In LEX ET SOCIETATIS 7(11). https://ejournal.unsrat.ac.id/index.php/lexetsocietatis/article/view/27366
Hadiono, K., & Noor Santi, R. C. 2020. Menyongsong Transformasi Digital. Proceeding Sendiu, pp 978–979.
Islamic Financial Services Industry Stability Report 2019.
K. S. Aldridge. 2017. Real-Time Risk: What Investors Should Know About Fintech, High- Frequency Trading and Flash Crashes. Hoboken: Wiley.
Laldin, M., Zubaidah. S, & Djafr. F. 2018. Awqaf Properties and Their Development in Malaysia: Governance, Reformation and Transformation. Global Conference on Waqf and Endowments, College of Islamic Studies, Hamid Bin Khalifa University
Leong, K. & Sung, A. 2018. FinTech (Financial Technology): What is It and How to Use Technologies to Create Business Value in Fintech Way?, Int. J. Innov. Manag. Technol. 9(2) pp 74–78.
Maharani, S., & Ulum, M. (2020). Ekonomi Digital : Peluang Dan Tantangan Masa Depan Terhadap Ekonomi Syariah Di Indonesia. In Conference on Islamic Studies (CoIS) https://doi.org/10.30659/COIS.V0I0.7981
Marinč, M. 2013 Electronic Commerce Research., Volume 13, Issue 1, pp 71–101 https://doi.org/10.1007/s10660-013-9107-2
Nawaz, S.S., Hilmy, H.M.A., & Gunapalan, S. 2020. Islamic banking customers’ intention to use mobile banking services: A Sri Lankan study. Journal of Advanced Research in Dynamical and Control Systems, 12(2), pp 1610–1626.
Omarini, A. 2017. The digital transformation in banking and the role of Fintechs in the new financial intermediation scenario. MPRA Paper 85228, University Library of Munich, Germany.
Reddy, S. K., & Reinartz, W. 2017. Digital transformation and value creation: Sea change ahead. GfK Marketing Intelligence Review. 9(1). Pp 10-17.
Sahay, R., & Allmen, U.E.V., Lahreche, A., Khera, P., Ogawa, S., Bazarbash, M., & Beaton, K. 2020. The Promise of Fintech : Financial Inclusion in the Post COVID-19 Era. IMF Departmental Papers/Policy Papers 20/09, International Monetary Fund.
Shin, Y. J., & Choi, Y. 2019. Feasibility of the Fintech Industry as an Innovation Platform for Sustainable Economic Growth in Korea. 11, 5351.
Suhaili, N. A., & Palil, M. R. 2016. Crowdfunding: A Collaborative Waqf Based Internet Platform, International Journal of Business, Economics and Law, 11(5), pp 2289-1552.
Sumadi. 2020. Menakar Dampak Fenomena Pandemi Covid-19 Terhadap Perbankan Syariah. Jurnal Hukum Ekonomi Syariah , 3(2), pp 145–162.
Tahliani, H. 2020. Tantangan Perbankan Syariah dalam Menghadapi Pandemi Covid-19. Madani Syariah, 3(2), pp 92–113. https://doi.org/10.51476/MADANISYARI’AH.V3I2.205
Thomson Reuters. State of the Global Islamic Economy Report 2016/17. https://ceif.iba.edu.pk/pdf/ThomsonReutersstateoftheGlobalIslamicEconomyReport201617.pdf
VanderStoep, S. W., & Johnston, D. D. 2009. Research methods for everyday life: blending qualitative and quantitative approaches Vol. 24.
Wijayanti, D.M., & Riza, A.F. 2017. Sharia Fintech: Positive innovation in consumer perspective. Proceeding of International Seminar Academic Network on Competition Policy pp 101-119
Winasis, S., & Riyanto, S. 2020. Transformasi Digital di Industri Perbankan Indonesia: Impak pada Stres Kerja Karyawan. IQTISHADIA: Jurnal Ekonomi Dan Perbankan Syariah. 7(1). Pp 55–64.
World Economic Forum. 2012. Rethinking Financial Innovation: Reducing Negative Outcomes while Retaining the Benefits. Geneva: World Economic Forum.
Yaniawati, P. 2020. Penelitian Studi Kepustakaan. Penelitian Kepustakaan (Library Research), 15.
DOI: http://dx.doi.org/10.24042/al-mashrof.v4i1.17186
Refbacks
- There are currently no refbacks.
Al-Mashrof: Islamic Banking and Finance Indexed by:
Al-Mashrof is Islamic Banking and Finance a Journal, Published by the Faculty of Islamic Economics and Business at UIN Raden Intan Lampung - Indonesia. (http://ejournal.radenintan.ac.id/index.php/almashrof/index). This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.