Digitalization, Innovation and Sustainable Development: An Evidence of Islamic Finance Perspective

Abstract

Islamic finance has developed a unique and balance system that complies with the principles of Shariah. Shariah encompasses all aspect of human life that aims to provide a fair, equitable distribution of wealth, alleviate all form of poverty and promote sustainable development. This study focuses on discussing the current issue of digitalization, innovation and sustainable development based on the evidence of Islamic finance. The objectives of this study are to generate the discussion, how digitalization and innovation play their role to sustain development in Islamic finance perspectives. Moreover, the study also sheds light on the challenges faced by Islamic finance on applying this digitalization and innovation viewpoints. The evidence suggests that due to the rapid economic growth, digitalization and innovation are the catalysts to sustain the development. In Islamic finance perspectives, digitalization and innovation (Fintech-blockchain and bitcoin) are still in their infancy stage. The researchers agreed that FinTech is a Maslahah (interest) to broaden the area of sustainable development such as zero poverty, no hunger and the social well-being of the community. Contribution/ Originality: This study contributes to the existing literature by discussing the current issue of digitalization, innovation and sustainable development based on the evidence of Islamic finance.

Synergizing the Sustainable Islamic Finance Ecosystem in Indonesia The Management Collaboration Line

“…Islamic finance has a unique system, and the balance is in accordance with sharia principles where this principle can cover all aspects of human life with the noble goal of making a fair and equitable contribution, alleviating all forms of poverty, and encouraging sustainable development (Sahabuddin, et al, 2019). Basically, everything experienced in this world has a purpose.…”

Islamic Financial Technology dalam Kajian Filsafat Ilmu

“…Menurut Sahabuddin et al, (2019), dalam ekonomi, umat Islam memegang prinsip syariah, yaitu memegang aturan berdasarkan pedoman yang terkandung dalam Al-Qur'an dan Sunnah, yang kemudian biasa dikenal dengan Islamic Finance atau Keuangan Islam. Keuangan Islam berasal dari akar ekonomi Islam, yang berbeda dari sistem ekonomi lainnya.…”

The Evolution of FinTech in Scientific Research: A Bibliometric Analysis

“…Additionally, as the shared aspects of the field and sustainability [3,4] indicate, FinTech has the potential to guide future organizations within the banking sector to promote, nurture, and facilitate environmentally, economically, and socially sustainable practices. Moreover, the emergence of further disruptive technologies, including Artificial Intelligence, Cloud Computing, Blockchain, and Machine Learning, is rapidly expanding the field's width [5]. Attributing to the benefits of FinTech regarding the efficiency of operation, output quality, management Sustainability 2023, 15, 7176 2 of 16 transparency, security, and added convenience for customers, previously identified growth in the field, in terms of annual production numbers [1,[5][6][7][8], can be justified.…”

“…Moreover, the emergence of further disruptive technologies, including Artificial Intelligence, Cloud Computing, Blockchain, and Machine Learning, is rapidly expanding the field's width [5]. Attributing to the benefits of FinTech regarding the efficiency of operation, output quality, management Sustainability 2023, 15, 7176 2 of 16 transparency, security, and added convenience for customers, previously identified growth in the field, in terms of annual production numbers [1,[5][6][7][8], can be justified. Besides, Fin-Tech is actively facilitating financial inclusion, with technologies such as Mobile Banking, Online Banking, and Agent Banking [9,10].…”