The forces preventing Islamic financial technology (Fintech) services from being accepted by Islamic financial institutions, markets, and society are identified in this study. The paper's main focus is on Islamic banking, often known as or called sharia-compliant banking. The prohibition of interest (riba) on loans in Islamic banking is one of the main distinctions between it and conventional banking. The innovation in Islamic banking is highlighted in this study, along with the benefits and drawbacks of Islamic banking's involvement in technology. A key difference between Islamic banking and traditional banking is that Islamic banking prohibits the charging of interest (riba) on loans. This paper identifies the innovation in Islamic Banking highlighting the opportunities and challenges for Islamic Banking to be involved in technology. The Scopus database comprising articles, journals, and reviewed papers published between 2008 and 2022, was used to collect data using five keywords. The majority of research conclusions highlight that Fintech will impact the future of Islamic banking at every level.
Altwaijry, O. I., Mohammed, M. O., Hassan, M. K., & Selim, M. (2021). Developing a Shari’ah based FinTech money creation free [SFMCF] model for Islamic banking. International Journal of Islamic and Middle Eastern Finance and Management, ahead-of-print(ahead-of-print). https://doi.org/10.1108/imefm-05-2021-0189
Asongu, S., & Nwachukwu, J. (2018). Recent finance advances in Information Technology for Inclusive Development: A systematic review. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3276499
Baber, H. (2019). Fintech, crowdfunding and customer retention in Islamic Banks. Vision: The Journal of Business Perspective, 24(3), 260–268.
https://doi.org/10.1177/0972262919869765
Z. (2017). Prototype Development of Mobile App for Trilingual Islamic Banking and Finance Glossary of Terms via iOS and Android Based Devices. International Journal of Interactive Mobile Technologies (IJIM), 11(3), 145. https://doi.org/10.3991/ijim.v11i3.6620
Buallay, A., Cummings, R., & Hamdan, A. (2019). Intellectual capital efficiency and Bank’s performance. Pacific Accounting Review, 31(4), 672–694. https://doi.org/10.1108/par-04-2019-0039
Chowdhury, O., Rishat, M., Al-Samiul, A., Azam, M. H. B., & Amin, M. Al-. (2022). The Rise Of Blockchain Technology In Shariah Based Banking System. Proceedings of the 2nd International Conference on Computing Advancements. https://doi.org/10.1145/3542954.3543005
Mahmood, D. H., Al Zadjali, Dr. F., Al Rawahi, M., Karim, Dr. S., & Hazik, D. M. (2022). Business trends & challenges in Islamic FinTech: A systematic literature review. F1000Research, 11, 329. https://doi.org/10.12688/f1000research.109400.
Industry 4.0 and intellectual capital in the age of FinTech. (2021). Technological Forecasting and Social Change, 166, 120598. https://doi.org/10.1016/j.techfore.2021.120598
Karim, S., Naeem, M. A., & Abaji, E. E. (2022). Is Islamic FinTech coherent with Islamic banking? A stakeholder’s perspective during COVID-19. Heliyon, 8(9), e10485. https://doi.org/10.1016/j.heliyon. 2022.e10485
Khan, S., & Rabbani, M. R. (2020). Chatbot as Islamic Finance Expert (CaIFE). Proceedings of the 2020 4th International Symposium on Computer Science and Intelligent Control. https://doi.org/10.1145/3440084.3441213
Mansour, M. (2019). Acceptance of Mobile Banking in Islamic Banks: Integration of DeLone & McLean IS model and Unified Theory of Acceptance and Use of Technology. InternationalJournal of Business Excellence, 1(1), 1. https://doi.org/10.1504/ijbex.2019.10021858
Mustafa, R. R., Khan, S., & Eleftherios. (2020). Fintech, Blockchain and Islamic Finance: an extensive literature review. International Journal of Economics and Business Administration, VIII(Issue 2), 65–86. https://doi.org/10.35808/ijeba/444.
Oladapo, I. A., Hamoudah, M. M., Alam, M. M., Olaopa, O. R., & Muda, R. (2021). Customers’ perceptions of fintech adaptability in the Islamic Banking Sector: Comparative Study on Malaysia and Saudi Arabia. Journal of Modelling in Management, 17(4), 1241–1261. https://doi.org/10.1108/jm2-10-2020-0256.
Rabbani, M. R., Abdulla, Y., Basahr, A., Khan, S., & Ali, M. A. (2020). Embracing Fintech in Islamic finance in the post Covid Era. 2020 International Conference on Decision Aid Sciences and Application (DASA). https://doi.org/10.1109/dasa51403.2020.9317196
Rabbani, M. R., Bashar, A., Nawaz, N., Karim, S., Ali, M. A., Mohd., Rahiman, H. U., & Alam, Md. S. (2021). Exploring the Role of Islamic Fintech in Combating the Aftershocks of COVID19: The Open Social Innovation of the Islamic Financial System. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 136. https://doi.org/10.3390/joitmc7020136.
Rabbani, R. M., Bashar, A., & Khan, S. (2021). Agility and Fintech is the Future of Islamic Finance: A Study from Islamic Banks in Bahrain. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3783171
Rickinghall, M. (2022). Impact of fintech on Islamic Bank Performance in Malaysia: Descriptive Study on Fintech. Modern Management Based on Big Data III. https://doi.org/10.3233/faia220088
Shaikh, I. M., Qureshi, M. A., Noordin, K., Shaikh, J. M., Khan, A., & Shahbaz, M. S.(2020). Acceptance of Islamic Financial Technology (FinTech) banking services by Malaysian users: An extension of technology acceptance model. Foresight, 22(3), 367–383. https://doi.org/10.1108/fs-12-2019-0105
Sudarsono, H., Nur Kholid, M., Trisanty, A., Shidiqie, S. A. J., & Suseno, P. (2022). Examining the adoption of mobile banking: Empirical evidence from Indonesian Muslim students. Banks and Bank Systems, 17(2), 138–149. https://doi.org/10.21511/bbs.17(2).2022.12.
Suhartanto, D., Syarief, M. E., Chandra Nugraha, A., Suhaeni, T., Masthura, A., & Amin,H. (2021). Millennial loyalty towards artificial intelligence-enabled mobile banking. Evidence from Indonesian Islamic banks. Journal of Islamic Marketing, ahead-of-print(ahead-of-print). https://doi.org/10.1108/jima-12-2020-0380
Usman, H., Projo, N. W. K., Chairy, C., & Haque, M. G. (2021). The exploration role of Sharia compliance in technology acceptance model for e-banking (case: Islamic bank in Indonesia). Journal of Islamic Marketing, ahead-of-print(ahead-of-print). https://doi.org/10.1108/jima-08-2020-0230
Yaseen, S. G., El Qirem, I. A., & Dajani, D. (2022). Islamic mobile banking smart services adoption and use in Jordan. ISRA International Journal of Islamic Finance. https://doi.org/10.1108/ijif-04-2021-0065
