Digital Transformation Through Islamic Digital Banking For Financial Inclusion
Abstract
Digitalization trends, to a certain extent, shape organizations and individuals in a similar way. The application of digitalization becoming widespread and is a necessity in a business today. Digitalization plays in improving the business landscape by creating the opportunity to enhance development, increase employment opportunities, and accelerate innovation. The introduction of information and communication technology has transformed the banking and financial services industry. The Islamic banks urge to react to these radical changes in order to meet the need of the society especially among Muslim community. The development and adoption of Shariah compliant digital banking in line with Maqasid al-Shariah in achieving financial inclusion is become significance as the alternative for conventional one. However, without a better understanding and exposure to the community would become a hinder for the development and the adoption of this digital platform. This study is aimed to explore the understanding and application of Islamic digital banking for financial inclusion. This study employed a quantitative survey questionnaire of 250 respondents. The Statistical Product and Service Solutions (SPSS) software version 26 has been used in analysing the data through descriptive analysis. The general findings shows that a better understanding towards the Islamic digital banking is important to alleviate poverty and for financial inclusion.
Downloads
References
Daryl Proctor. (2019, December 19). What is Digital Banking? Retrieved October 19, 2021, from Temenos: https://www.temenos.com/news/2019/12/19/what-is-digital-banking/
Eddy Yusof, E. F. (2009). Islamic Finance: Debt versus Equity Financing in the Light of Maqasid al-Shari’ah. University Library of Munich, Germany, MPRA Paper, 1-19.
Fu, J. S. (2013). ICT in Education: A Critical Literature Review and Its Implications. International Journal of Education and Development using Information and Communication Technology, 9(1), 112-125.
Garzaro, D. V. (2020). Internet and mobile banking: the role of engagement and experience on satisfaction and loyalty. International Journal of Bank Marketing, 39(1), 1-23.
George Okello Candiya Bongomin, P. Y. (2019). Digital financial innovations in the twenty-first century Do transaction tax exemptions promote mobile money services for financial inclusion in developing countries? Digital financial innovations, 189-208.
Hyun-Soo Choi, R. K. (2020, May). Physical Frictions and Digital Banking Adoption. Behavioral & Experimental Economics eJournal, 1-50. doi:10.2139/ssrn.3333636
Ibn Ashur. (2006). Ibn Ashur: Treatise on Maqasid Al-Shariah Paperback. zaytuna: International Institute of Islamic Thought (IIIT). Retrieved June 2, 2022
Jack & Suri. (2016, December). The long-run poverty and gender impacts of mobile money. Development Economics, 1288-1292.
Kikulwe, E. F. (2014). Mobile Money, Smallholder Farmers, and Household Welfare in Kenya. 9(10), 1-13. doi:https://doi.org/10.1371/journal.pone.0109804
Luca Ventura. (2022, September 5). World's Most Unbanked Countries 2021. Retrieved September 6, 2022, from Global news and insight for corporate financial professionals: https://www.gfmag.com/global-data/economic-data/worlds-most-unbanked-countries
M.S. Abdul Rasool, M. A. (2020). Wellbeing of The Society: A Maqasid Al-Shari‘ah Approach. Afkar, 25-46.
Malyshev, A. (2021, November 1). What Is Digital Banking? Meaning, Types and Benefits. Retrieved October 1, 2022, from SDK.finance: https://sdk.finance/what-is-digital-banking/
MAMBU. (2021, october 1). Case Study MAMBU and Bank Islam Malaysia Berhad: Malaysia’s Islamic bank takes a digital leap. Retrieved February 25, 2022, from MAMBU: https://cdn.sanity.io/files/0k2k2bbv/redesign_21/d4117e4b35dd2223e124ee4a9d172a87396da1fe.pdf
Md. Nur Alam Siddik, G. S. (2014). Financial Inclusion through Mobile Banking: A Case of Bangladesh. Journal of Applied Finance & Banking, 109-136.
Muhammad Ridhwan Ab Aziz & M. Zakirol Izat. (2021). Islamic Digital Banking in the Light of Maqasid Shariah: A Review of Literatures. Al-Qanatir: International Journal of Islamic Studies., 23(2), 63-73. Retrieved from https://al-qanatir.com/aq/article/view/358
N.I, D. A. (2007). Maqasid al-Shari`ah, Maslahah, and Corporate Social Responsibility. American Journal of Islamic Social Sciences , 25-45.
Nabil Bello, M. F. (2017). Maqāṣid al-Sharīʿah and the Online Banking System: Implications for Service Delivery. International Journal of Fiqh and Usul al-Fiqh Studies, 92-99.
Narcisa Roxana Moşteanu, A. F. (2020). Digital Technologies Implementation within Financial and Banking System During Socio Distancing Restrictions – Back to the Future. International Journal of Advanced Research in Engineering and Technology (IJARET), 11(6), 307-315.
North, R. (2018, November 6). The role of digital banking in india – importance of digital banking in india. Retrieved from Entreprise Edges: https://www.enterpriseedges.com/role-of-digital-banking-india
Nunnaly, J. (1987). Psychological Theory (2nd ed.). New York: McGagraw-Hill. Retrieved January 15, 2022
Ong, S. (2020, January 6). Islamic banks could benefit from digital banking. Retrieved October 20, 2022, from The Malaysian Reserve: https://themalaysianreserve.com/2020/01/06/islamic-banks-could-benefit-from-digital-banking-say-experts/
P.Revathi. (2019). Digital Banking Challenges and Opportunities. EPRA International Journal of Economic and Business Review, 20-23.
Rajesh Barik & Pritee Sharma. (2019). Analyzing the progress and prospects of financial inclusion in India. Journal Public Affair, 1-6. doi:10.1002/pa.1948
Sekaran. (2003). Research Research Methods for Business: A Skill-Building Approach. (4th ed.). New York: John Wiley & Sons. Retrieved June 29, 2022
Shaikh, A. M. (2020). Examining key drivers of consumer experience with (non-financial) digital services-An exploratory study. Journal of Retailing and Consumer Services, 55, 1-10. doi:10.1016/j.jretconser.2020.102073.
Srivastava, D. D. (2019). Role of digital banking in increasing financial inclusion in India. Indian Journal of Economics and Business, 457-468.
Statista Research Department. (2022, October 18). Number of internet users in Malaysia from 2010 to 2020 and a forecast up to 2025. Retrieved from Statista Research Department: https://www.statista.com/statistics/553752/number-of-internet-users-in-malaysia/
Stephen Mago, S. C. (2014). The Impact of Mobile Banking on Financial Inclusion In Zimbabwe: A Case for Masvingo Province. Mediterranean Journal of Social Sciences, 5, 221-231.
Copyright (c) 2022 Muhammad Ridhwan AB. Aziz
This work is licensed under a Creative Commons Attribution 4.0 International License.