2019
DOI: 10.21580/economica.2019.10.2.3400
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Challenges of Islamic Supervisory in The Islamic Financial Technology Industry

Abstract: Islamic financial industry is increasingly developing with the presence of financial technology both in the form of peer to peer lending and crowdfunding. Islamic financial technology (fintech) enables sharia business players to formulate financing schemes using innovative and diverse sharia contracts. This has become a challenge in the aspect of sharia supervision due to limited regulations, corporate governance, and human resource capabilities. This paper will discuss the development of the financial technol… Show more

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Cited by 7 publications
(7 citation statements)
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“…This lack of protection can lead to concerns about the security of investments and the potential for exploitation, which may deter individuals from participating in sharia P2P lending. Moreover, the challenges in sharia supervision due to limited regulations, corporate governance, and human resource capabilities, as detailed in Muhammad & Lanaula (2019), can hinder the ability of sharia P2P lending platforms to effectively implement and enforce sharia compliance. This can lead to a lack of trust among investors and users, which can negatively impact the adoption of sharia P2P lending services.…”
Section: Figure1 Hypothesis Testing Resultsmentioning
confidence: 99%
“…This lack of protection can lead to concerns about the security of investments and the potential for exploitation, which may deter individuals from participating in sharia P2P lending. Moreover, the challenges in sharia supervision due to limited regulations, corporate governance, and human resource capabilities, as detailed in Muhammad & Lanaula (2019), can hinder the ability of sharia P2P lending platforms to effectively implement and enforce sharia compliance. This can lead to a lack of trust among investors and users, which can negatively impact the adoption of sharia P2P lending services.…”
Section: Figure1 Hypothesis Testing Resultsmentioning
confidence: 99%
“…Consequently, SSB should not merely await proposals from Islamic banking; Rather, it should actively recommend trending products and services to Islamic banks, ensuring compliance with Islamic norms.From a regulatory standpoint, DSN-MUI, as the governing authority, must extend the same policy framework to SSB for issuing fatwas determining the permissibility of Islamic banking products and services. With this streamlined process, the pace of innovation in Islamic banking products and services can accelerate, leading to more optimal outcomes (Muhammad & Lanaula, 2019;Yakin, 2021;Handayani et al, 2023). This approach eliminates the need for proposed products and services to undergo prolonged waiting periods for fatwa issuance from DSN-MUI; instead, they can attain legality in advance through SSB.To gather more insights, we interviewed Mr. Alvin, an employee at an Islamic bank in Indonesia.…”
Section: Methodsmentioning
confidence: 99%
“…Dibalik adanya peluang-peluang tersebut terdapat tantangan bagi perbankan syariah dalam menghadapi maraknya fintech berbasis pinjaman online.Adapun tantangan yang dihadapi oleh perbankan syariah yaitu dalam berkolaborasi dengan lembaga fintech dalam mengatur dan mengawasi perusahaan fintech yang beroprasi dalam sistem perbankan syariah.Salah satu tantangan utama adalah menjamin bahwa perusahaan fintech tersebut memenuhi prinsip-prinsip perbankan syariah, seperti tidak menggunakan bunga atau riba dalam transaksi keuangan. Selain itu, perbankan syariah juga harus memastikan bahwa perusahaan fintech tersebut memiliki sistem pengawasan yang cukup kuat untuk mencegah tindakan kecurangan atau penipuan (R. Muhammad & Lanaula, 2019).…”
Section: Peluang Dan Tantangan Perbankan Syariah DIunclassified