Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech
Purpose: This study aims to investigate the significant role of the Shariah Board (SB) in the innovation of digital finance products through SBs’ interaction with financial technology (FinTech). Design/methodology/approach: By using semi-structured interviews, the paper examines 34 views and experie...
Published in: | Journal of Islamic Accounting and Business Research |
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Emerald Publishing
2023
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2-s2.0-85158858204 Mohd Haridan N.; Sheikh Hassan A.F.; Mohammed Shah S.; Mustafa H. Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech 2023 Journal of Islamic Accounting and Business Research 14 6 10.1108/JIABR-11-2022-0305 https://www.scopus.com/inward/record.uri?eid=2-s2.0-85158858204&doi=10.1108%2fJIABR-11-2022-0305&partnerID=40&md5=d9644b866935ba442bf74e7c7849f979 Purpose: This study aims to investigate the significant role of the Shariah Board (SB) in the innovation of digital finance products through SBs’ interaction with financial technology (FinTech). Design/methodology/approach: By using semi-structured interviews, the paper examines 34 views and experiences of scholars and other practitioners from the FinTech and Islamic banking industries to gain an in-depth understanding of SBs’ Shariah compliance roles in FinTech inclusion in Malaysian Islamic banks (IBs). Findings: Taking advantage of Malaysia’s comprehensive Shariah Governance Framework for IBs, the study highlighted the importance of SBs to better address the opportunities and challenges of financial innovation for the development of IBs with the inclusion of FinTech. The authors found that digital solutions and tools, such as Robo Advisory system and blockchain, enhance SBs’ roles by providing more effective and timely Shariah assurance regardless of the volume of data information and storage. Practical implications: Given SBs significant roles in conforming to the Shariah, the study contributed significantly to assisting the regulatory and policy promulgation that enhance SBs’ integrity and credibility in response to the growth of IB infrastructures and financial innovation. Originality/value: To the best of the authors’ knowledge, this is the first study to investigate the significant role of SBs in the innovation of digital finance products through their interaction with FinTech, while prior studies focused on the characteristics and structure of Islamic digital financial products. © 2023, Emerald Publishing Limited. Emerald Publishing 17590817 English Article |
author |
Mohd Haridan N.; Sheikh Hassan A.F.; Mohammed Shah S.; Mustafa H. |
spellingShingle |
Mohd Haridan N.; Sheikh Hassan A.F.; Mohammed Shah S.; Mustafa H. Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech |
author_facet |
Mohd Haridan N.; Sheikh Hassan A.F.; Mohammed Shah S.; Mustafa H. |
author_sort |
Mohd Haridan N.; Sheikh Hassan A.F.; Mohammed Shah S.; Mustafa H. |
title |
Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech |
title_short |
Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech |
title_full |
Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech |
title_fullStr |
Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech |
title_full_unstemmed |
Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech |
title_sort |
Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech |
publishDate |
2023 |
container_title |
Journal of Islamic Accounting and Business Research |
container_volume |
14 |
container_issue |
6 |
doi_str_mv |
10.1108/JIABR-11-2022-0305 |
url |
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85158858204&doi=10.1108%2fJIABR-11-2022-0305&partnerID=40&md5=d9644b866935ba442bf74e7c7849f979 |
description |
Purpose: This study aims to investigate the significant role of the Shariah Board (SB) in the innovation of digital finance products through SBs’ interaction with financial technology (FinTech). Design/methodology/approach: By using semi-structured interviews, the paper examines 34 views and experiences of scholars and other practitioners from the FinTech and Islamic banking industries to gain an in-depth understanding of SBs’ Shariah compliance roles in FinTech inclusion in Malaysian Islamic banks (IBs). Findings: Taking advantage of Malaysia’s comprehensive Shariah Governance Framework for IBs, the study highlighted the importance of SBs to better address the opportunities and challenges of financial innovation for the development of IBs with the inclusion of FinTech. The authors found that digital solutions and tools, such as Robo Advisory system and blockchain, enhance SBs’ roles by providing more effective and timely Shariah assurance regardless of the volume of data information and storage. Practical implications: Given SBs significant roles in conforming to the Shariah, the study contributed significantly to assisting the regulatory and policy promulgation that enhance SBs’ integrity and credibility in response to the growth of IB infrastructures and financial innovation. Originality/value: To the best of the authors’ knowledge, this is the first study to investigate the significant role of SBs in the innovation of digital finance products through their interaction with FinTech, while prior studies focused on the characteristics and structure of Islamic digital financial products. © 2023, Emerald Publishing Limited. |
publisher |
Emerald Publishing |
issn |
17590817 |
language |
English |
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Article |
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scopus |
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Scopus |
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1818940558893121536 |