A Slanted View on the Future of Islamic Fintech and Conventional Fintech in South and Southeast Asian Countries

Abstract

Introduction/Main Objectives: This study reviews the presence of Fintech in South and Southeast Asian countries through several categories. Background Problems: Many people doubt the presence of Fintech in South Asia and Southeast Asia as part of a developing country with all its limitations, especially Sharia Fintech. Novelty: Developing Sharia Fintech in South Asian and Southeast Asian countries, which have not spread evenly before. Research Methods: Qualitatively using GFD (Global Findex Database) data collected in 2021, which was then elaborated with 115 research studies (50 from Scopus, 24 from Research Gate, 21 from Google Scholars and 20 from other sources). Finding/Results: The presence of Fintech is more likely to develop rapidly in the Southeast Asia region, not so in the South Asian region. The lneeds of each region are different. It is different if developed by Sharia Fintech (I-Fintech/Islamic Financial Technology). Its potential is almost acceptable in all regions, including in countries that are sensitive to religious issues. Conclusion: It is not only Fintech that is the future of cutting-edge banking, but also the presence of I-Fintech (Islamic Financial Technology) which empirically opens up great opportunities and repositions mainstream financial institutions into traditional banking, including Islamic banking. However, the presence of Fintech and I-Fintech still requires the support of local government policies and the wider community, Muslims and non-Muslims in any part of the world.

Growth of Islamic Fintech in Indonesia

“…This research is in line with previous research that examines conventional fintech and Islamic fintech more broadly. According to Mansur et al,(2022) state that because each area has distinct demands, Southeast Asia is more likely than South Asia to see a quick development of traditional fintech. Nonetheless, Islamic fintech is acceptable everywhere, even in nations that are religiously conservative.…”

“…And according to Kelana, (2018), Sharia compliance, openness, and mutual benefit distinguish fintech from Islamic fintech. According to earlier research on fintech and Islamic fintech (Mansur et al, 2022), Southeast Asia is more likely than South Asia to have quick growth in fintech due to the distinct demands of the two regions. Nonetheless, Islamic fintech is acceptable everywhere, even in religiously conservative nations.…”

Fintech and the Future of Banking: Collaboration and Innovation for Better Financial Services

“…Fintech and conventional banks exhibit both differences and similarities in various aspects. Islamic Fintech and conventional Fintech differ in terms of Sharia compliance, transparency, and mutual benefit (Mansur et al, 2022). While Islamic banks may be slower in adopting Fintech compared to conventional banks (Bouheni et al, 2023), the impact of Fintech on customer retention and profitability is notable in both types of banks (Baber, 2019).…”