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 expe...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Emerald
2023
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| Online Access: | http://psasir.upm.edu.my/id/eprint/108006/ http://psasir.upm.edu.my/id/eprint/108006/1/108006.pdf |
| _version_ | 1848865047914217472 |
|---|---|
| author | Mohd Haridan, Nurfarahin Sheikh Hassan, Ahmad Fahmi Mohammed Shah, Sabarina Mustafa, Hasri |
| author_facet | Mohd Haridan, Nurfarahin Sheikh Hassan, Ahmad Fahmi Mohammed Shah, Sabarina Mustafa, Hasri |
| author_sort | Mohd Haridan, Nurfarahin |
| building | UPM Institutional Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-15T13:58:30Z |
| format | Article |
| id | upm-108006 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T13:58:30Z |
| publishDate | 2023 |
| publisher | Emerald |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1080062025-03-13T01:40:17Z http://psasir.upm.edu.my/id/eprint/108006/ Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech Mohd Haridan, Nurfarahin Sheikh Hassan, Ahmad Fahmi Mohammed Shah, Sabarina Mustafa, Hasri 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. Emerald 2023 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/108006/1/108006.pdf Mohd Haridan, Nurfarahin and Sheikh Hassan, Ahmad Fahmi and Mohammed Shah, Sabarina and Mustafa, Hasri (2023) Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech. Journal of Islamic Accounting and Business Research, 14 (6). pp. 911-930. ISSN 1759-0817; eISSN: 1759-0825 https://www.emerald.com/insight/content/doi/10.1108/jiabr-11-2022-0305/full/html 10.1108/jiabr-11-2022-0305 |
| spellingShingle | Mohd Haridan, Nurfarahin Sheikh Hassan, Ahmad Fahmi Mohammed Shah, Sabarina Mustafa, Hasri Financial innovation in Islamic banks: evidence on the interaction between Shariah board and FinTech |
| title | 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_short | 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 |
| url | http://psasir.upm.edu.my/id/eprint/108006/ http://psasir.upm.edu.my/id/eprint/108006/ http://psasir.upm.edu.my/id/eprint/108006/ http://psasir.upm.edu.my/id/eprint/108006/1/108006.pdf |