In an era of unprecedented technological advancement, the convergence of financial technology (Fintech) and Islamic finance has emerged as a dynamic and transformative force in the global financial landscape. Fintech, characterized by innovations such as blockchain, artificial intelligence, mobile payments, and peer-to-peer lending, has redefined traditional financial services, offering unprecedented efficiency, accessibility, and convenience, The convergence of Fintech and Islamic finance promises to enhance financial services' efficiency and inclusivity and facilitate Sharia-compliant offerings' expansion to a broader audience. This amalgamation could address long-standing challenges in Islamic finance, such as accessibility, transparency, and product diversity. The primary objective of this research is to comprehensively investigate the convergence of Fintech and Islamic finance, aiming to uncover the implications, challenges, opportunities, and potential outcomes of their integration.
Top1. Introduction
In an era of unprecedented technological advancement, the convergence of financial technology (Fintech) and Islamic finance (IF) has emerged as a dynamic and transformative force in the global financial landscape, El Basri, M., & Mirakhor, A. (2019). Fintech, characterized by innovations such as blockchain (Panigrahi et al., 2023), artificial intelligence, mobile payments, and peer-to-peer lending, has redefined traditional financial services, offering unprecedented efficiency, accessibility, and convenience, Hassan, M. K., et al. (2020). Concurrently, IF, grounded in principles that promote ethical and Sharia-compliant financial practices, has witnessed substantial growth and international recognition over the past few decades, Zaman, M., & Khairudin, N. H. (2021). The amalgamation of Fintech and IF is reshaping how financial services are delivered, challenging conventional norms, and expanding the frontiers of Sharia-compliant solutions, Khan, T. (2020). In today's rapidly evolving economic landscape, Fintech and IF is a compelling nexus that holds significant relevance for the global financial industry and the Islamic financial ecosystem, Abdul Razak, D., & Noordin, B. A. (2020). Fintech, fuelled by technological innovation, has revolutionized traditional financial services worldwide, reshaping how individuals and businesses access, manage, and transact with their financial resources, Akhtar, S. A., & Akhtar, M. F. (2020) Concurrently, IF, with its foundation in ethical and Sharia-compliant principles, has garnered increasing attention as an alternative financial model that aligns with the values of many individuals and institutions, El-Galfy, A. S. (2021).
The convergence of Fintech and IF promises to enhance financial services' efficiency and inclusivity and facilitate Sharia-compliant offerings' expansion to a broader audience, Chapra, M. U. (2019). This amalgamation could address long-standing challenges in IF, such as accessibility, transparency, and product diversity, Hasan, M., & Dridi, J. (2019). Examine the mechanisms and strategies employed to ensure that Fintech solutions are ethically and Sharia-compliant, addressing the compatibility of technological advancements with Islamic financial principles. Investigate the evolving regulatory landscape surrounding Fintech and IF integration, highlighting the problems and opportunities for both sectors under regulatory scrutiny. Analyse the potential for growth in the Fintech-based IF services market, examining how these solutions can tap into new segments and enhance customer engagement.
A set of focused research questions has been developed to address the overarching objective of advancing knowledge in the rapidly evolving intersection of Fintech and IF. These research questions aim to provide clarity and structure to the systematic review, enabling a comprehensive examination of the current state of the field and its implications. These questions will guide the systematic literature selection and in-depth bibliometric analysis, facilitating the synthesis of critical findings and the presentation of the most recent advances in Fintech and IF. By addressing these research questions, this study seeks to contribute to informed decision-making among stakeholders, inspire further research endeavors, and elevate the standards of transparency and rigor in research practices, ultimately fostering a deeper understanding of this dynamic and transformative domain within the global financial industry.
RQ 1: How do emerging Fintech innovations impact the growth and sustainability of IF?
RQ 2: What are the top contributions of Prominent Researchers towards Fintech and IF?
RQ 3: To what extent do the top-rated research journals explore the potential combined effect between IF and emerging technologies through research journals and prominent Institutions?
RQ 4: What prominent themes and research directions could strengthen fintech adaptions into IF in emerging countries?