This paper aims to evaluate the impact of Islamic FinTech innovations on Malaysia’s banks’ performance by utilizing the eighteen regional commercial banks that started Islamic banking in Malaysia. The data is from 2005–2020 with four hundred and seventy observations. Multivariate regression has been used to evaluate the research questions empirically. This research is the first to statistically evaluate the Islamic fintech innovation impact on the bank’s performance in Malaysia. Furthermore, research on financial metrics is presented thoroughly for the years 2005–2020. We have contributed to the Islamic FinTech era with the following findings: (i) The Islamic FinTech has a positive effect on the bank’s performance in Malaysia; (ii) The Islamic FinTech has also positively affected the banks’ income; (iii) The impact of Islamic FinTech on economic performance was more substantial for the small-banks compared with large-banks; (iv) In terms of balance sheet debts, small banks’ funds of money market are positively influenced by the application of Islamic FinTech; (v) In terms of consumer loan repayments to the small banks have been positively impacted by the app of Islamic FinTech; (vi) The per capita GDP does have a good impact on ROE of banks; (vii) Penetration rates of Islamic banking has positively impacted bank’ return on assets and equity.