The Opportunities of Digital Wallets from an Islamic Perspective

Ahmed, Mezbah Uddin; Tarique, Kazi Md.

doi:10.1007/978-3-030-45827-0_15

Cited by 4 publications

(7 citation statements)

References 11 publications

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“…The literature on fintech adoption in Islamic banking reveals an overall positive tone regarding the potential benefits but also highlights some risks and challenges that require mitigation. While most studies perceive that emerging technologies can strengthen data analytics, process automation, customer service, and risk management capabilities, empirical evidence on realized outcomes remains limited (Ahmed 2019b;Rahman 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

“…While conceptual models highlight that emerging technologies can potentially transform global risk management in Islamic banks, empirical evidence remains limited (Ahmed 2019b;Miah and Uddin 2021). In the UAE context, Islamic banks vary in their digital maturity levels despite government mandates for digital transformation (Rahman 2019).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…The "Fintech Capabilities" variable assesses the extent to which Islamic banks have been able to build these competencies through adopting fintech innovations. Improved capabilities should correlate with higher risk management effectiveness (Ahmed 2019b;Miah and Uddin 2021).…”

Section: Independent Variablesmentioning

confidence: 99%

“…While offering potential efficiency gains, fintech introduces new risks, such as cybersecurity, model reliability, and regulation. This dynamic is particularly salient for Islamic banks given their unique risk management requirements arising from profit-and-loss sharing models, sharia compliance, and ethical financing goals (Ahmed 2019a(Ahmed , 2019b.…”

Section: Introductionmentioning

confidence: 99%

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Risk Management in Islamic Banking: The Impact of Financial Technologies through Empirical Insights from the UAE

Al Hammadi,

Jimber-Del Río,

Ochoa-Rico

et al. 2024

Risks

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Financial technology (fintech) innovations are transforming banking globally. Their adoption poses new opportunities and risks for Islamic banks with unique requirements. This study examines fintech’s implications for risk management effectiveness in United Arab Emirates Islamic banks. A conceptual model incorporates factors like fintech adoption, emerging capabilities, digital maturity, and IT security influencing outcomes. Primary data were collected via survey from nine UAE Islamic banks and analyzed using PLS-SEM. Results show that fintech adoption and capabilities positively impacted effectiveness, while digital transformation alone did not. The findings also show that the regulatory environment did not moderate relationships as hypothesized. The findings provide empirical evidence on optimizing risk management through responsible fintech enablement and oversight alignment in the UAE context.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Hypothesis Developmentmentioning

confidence: 99%

Section: Independent Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Risk Management in Islamic Banking: The Impact of Financial Technologies through Empirical Insights from the UAE

Al Hammadi,

Jimber-Del Río,

Ochoa-Rico

et al. 2024

Risks

View full text Add to dashboard Cite

show abstract

“…A digital wallet or E-wallet refers to an alternative or e-wallet is an online instrument that allows people to perform electronic transactions and store their payment methods (debit and credit cards, loyalty programmes, and alternative methods) via an electronic device such as smartphone, tablet or computer (Alam et al, 2019). In this study, zakat digital wallet refers to shariah compliant in its activities such as collection of zakat which must be deposited in Islamic bank account or being invested in Shariah compliant instruments (Ahmed & Tarique, 2021). This study aims to explore knowledge awareness of the intention to use digital wallet among zakat payers.…”

Section: Background Of the Studymentioning

confidence: 99%

Blockchain Knowledge Awareness and Intention to Adopt a Technology for Zakat Transactions

Salleh¹,

Rasid²,

Basiruddin³

2022

IJARBSS

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Blockchain represented the second era of internet and has the potential in addressing various challenges towards strengthening the economy including Islamic finance. Zakat institutions, which are non-bank financial institutions, supplement bank operations in carrying out tasks for economic growth aimed at eradicating poverty, promoting social justice, and distributing revenue fairly. Although the immutability, security, and transparency of blockchain may entice Islamic financial institutions to adopt it for their operations, adoption, and behavioural intention of halal blockchain digital wallet in non-bank financial institutions like zakat institutions, are still unknown. Islamic non-bank financial institutions like zakat are under pressure due to the expanding deployment of blockchain technology today and the growing awareness of its potential. The purpose of this research is to examine the feasibility of using a survey instrument from pilot study to determine the level of blockchain knowledge awareness among zakat payers. The study employs a quantitative method using a survey questionnaire and a simple random sampling was administered among zakat payers to achieve the purpose. The questionnaires were distributed at random to zakat payers. The results show that internal consistency among the items was high. Majority of respondents were completely unaware of cryptocurrencies because they have never transacted with it before, and even though majority of the respondents had a fair amount of understanding about blockchain technology and cryptocurrencies, they had no experience carrying out bitcoin transactions. The instruments from this study can be utilised for future actual survey on a larger scale.

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The Role of Financial Technology in Promoting Growth in Islamic Finance in the Digital Era

Putri,

Hanif

2024

Al-Fiddhoh

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Financial technology (fintech) has increased and can potentially drive Sharia finance's growth. This study aims to analyze fintech's role in promoting Islamic finance's growth in the digital era. The research method uses a literature study. A descriptive analysis approach involves breaking secondary data in journals, articles, and statistical reports related to the research topic. The results of this study indicate that the adoption of fintech in Sharia finance is predicted to continue to increase, driven by the millennial Muslim population. Fintech provides opportunities for Sharia financial product innovation. However, the challenges of developing Sharia fintech are significant and related to regulations, compliance risk, and human resources. Some examples of Sharia fintech platforms, such as P2P lending and equity crowdfunding, have been quite successful. The prospects for sharia fintech in Indonesia are positive with the support of digital infrastructure and the millennial Muslim population. Regulatory support is needed so that Sharia fintech is truly compliant and can drive the growth of Islamic finance. Sharia fintech has the potential to be a game changer for the development of Islamic finance in Indonesia. Comprehensive support from regulators and stakeholders can realize the optimal implementation of Sharia fintech for inclusive and sustainable Sharia finance expansion.

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The Opportunities of Digital Wallets from an Islamic Perspective

Cited by 4 publications

References 11 publications

Risk Management in Islamic Banking: The Impact of Financial Technologies through Empirical Insights from the UAE

Risk Management in Islamic Banking: The Impact of Financial Technologies through Empirical Insights from the UAE

Blockchain Knowledge Awareness and Intention to Adopt a Technology for Zakat Transactions

The Role of Financial Technology in Promoting Growth in Islamic Finance in the Digital Era

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