Islamic finance in the digital world : opportunities and challenges

Joint Authors

Laldin, Muhammad Akram
Jafri, Faris

Source

Journal of Islam in Asia

Issue

Vol. 16, Issue 3 (s) (31 Dec. 2019), pp.283-299, 17 p.

Publisher

International Islamic University Malaysia

Publication Date

2019-12-31

Country of Publication

Malaysia

No. of Pages

17

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Abstract EN

Islamic finance has grown considerably over the last four decades and has a global reach.

It is considered one of the fastest-growing segments of the global financial industry.

One of the biggest challenges for Islamic finance in the next decade is on financial technology (Known as Fintech).

In the digital world, traditional financial practice will be left behind.

This paper examines the phenomenon of financial innovation and technology in Islamic finance.

The research adopts a qualitative approach employing the inductive method to trace primary and secondary data on the topic and the descriptive method to describe the emergence of fintech in the Islamic finance industry.

The study found that all financial innovations are generally welcomed and can be considered as benefits (Maslahah) to the customers and to the whole financial industry.

Innovations in fintech become impermissible only if there is clear evidence from the Shariah that they are against the basic rules of the Shariah.

The study also highlights the relationship between fintech and Shariah compliance and suggested to have a proper Shariah governance framework in order to ensure the operation of fintech is in total compliance with Shariah.

Besides that, authorities and regulators are required to develop Shariah standards that would explicitly spell out the requirement of Shariah that are fundamental to fintech operations and practices.

American Psychological Association (APA)

Laldin, Muhammad Akram& Jafri, Faris. 2019. Islamic finance in the digital world : opportunities and challenges. Journal of Islam in Asia،Vol. 16, no. 3 (s), pp.283-299.
https://search.emarefa.net/detail/BIM-1107182

Modern Language Association (MLA)

Laldin, Muhammad Akram& Jafri, Faris. Islamic finance in the digital world : opportunities and challenges. Journal of Islam in Asia Vol. 16, no. 3 (Special issue) (Dec. 2019), pp.283-299.
https://search.emarefa.net/detail/BIM-1107182

American Medical Association (AMA)

Laldin, Muhammad Akram& Jafri, Faris. Islamic finance in the digital world : opportunities and challenges. Journal of Islam in Asia. 2019. Vol. 16, no. 3 (s), pp.283-299.
https://search.emarefa.net/detail/BIM-1107182

Data Type

Journal Articles

Language

English

Notes

Record ID

BIM-1107182