Fintech in the Islamic Banking Sector and Its Impact on the Stakeholders in the Wake of COVID-19

Hassan, M Kabir, Ebrahim, Rabab Hasan, Rabbani, Mustafa Raza and Banna, BM Hasanul (2022) Fintech in the Islamic Banking Sector and Its Impact on the Stakeholders in the Wake of COVID-19. In: FinTech in Islamic Financial Institutions: Scope, Challenges, and Implications in Islamic Finance. Springer Nature, pp. 175-192. ISBN 9783031149412

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Abstract

The ongoing COVID-19 pandemic has wreaked havoc on the financial system, and it now becomes a new challenge to Islamic banking. This pandemic demands the use of a distinct set of financial services, strategies, and technologies among which is the Islamic Fintech. The main objective of this study is to explore the use of Islamic Fintech in the Islamic banking sector and its impact on the stakeholders in the wake of COVID-19 pandemic. This study shows that Islamic Fintech has performed a critical role in assisting Islamic banks and other Islamic financial institutions to continue operating effectively during this difficult time. Although the impact of the pandemic has been very harsh on the users of Fintech, the financial institutions have benefited due to the wider acceptance rate of the Fintech-based financial services. The study also shows that during the COVID-19 pandemic, everyone has been impacted, including governments, customers, Fintech developers, Fintech startups, and Islamic financial institutions. However, Islamic Fintech has emerged as a critical tool for mitigating the negative impacts of the COVID-19 pandemic on the economy and society during and after this difficult time.