Unveiling the Potential of the Islamic Fintech Ecosystem in Emerging Markets

Abstract

Islamic FinTech combines Islamic financial principles with advanced technology, offering a unique approach to financial inclusion in emerging markets. This study aimed to examine the critical aspects of the Islamic FinTech ecosystem and provide a roadmap for stakeholders to improve financial inclusion in these markets. A qualitative research methodology was employed, using semi-structured interviews, which are structured based on the FinTech ecosystem dimensions, which include talents, demand, policy, and capital, to analyze the Islamic FinTech ecosystem in emerging markets. The study found that improvements are needed in talent development, customer-centric products, government policies, and investment strategies to enhance the Islamic FinTech ecosystem. The study's results indicate a strong demand for innovative Islamic financial products in emerging markets, with high acceptance and adoption rates. However, several aspects need improvement, including developing locally tailored products and services suitable for emerging markets, building trust and credibility, and fostering partnerships between traditional Islamic financial institutions and FinTech startups. The study also highlights the importance of government policies, regulations, and capital investments in nurturing a healthy Islamic FinTech ecosystem in emerging markets. The originality lies in the comprehensive analysis of the diverse perspectives of different stakeholders by providing original insights into the Islamic FinTech ecosystem in emerging markets and its potential role in promoting financial inclusion.

The Roles of Islamic Financial Technology (FINTECH) in Fostering Financial Inclusion in Malaysia

“…This is achieved through the expansion of financial inclusion, provision of accessible and affordable Shariah-compliant financing, improvement of Zakat and charity management processes, promotion of ethical investment and wealth management practises, enhancement of risk mitigation through Takaful, and facilitation of financial education. (Ajouz & Abuamria, 2023). (including endnotes, references, supporting exhibits and any appendices).…”

Revitalisasi Industri Keuangan: Tinjauan atas Perkembangan Terkini Fintech di Jawa Barat

“…Di pasar negara berkembang, peningkatan dalam pengembangan talenta, produk yang berpusat pada konsumen, kebijakan pemerintah, dan strategi investasi diperlukan untuk meningkatkan ekosistem tekfin syariah (Ajouz & Abuamria, 2023;Jaman, 2023;Jaman & Pertiwi, 2023). Lonjakan penggunaan Tekfin telah merevolusi cara layanan keuangan dilakukan, yang mengarah pada peningkatan efisiensi, efektivitas biaya, dan inklusi keuangan (Ajouz & Abuamria, 2023). Untuk menumbuhkan ekosistem Fintech yang mendukung, sangat penting untuk berinvestasi pada talenta, infrastruktur, dan mekanisme pendanaan.…”

“…Hal ini dapat mendorong inovasi dan kewirausahaan di sektor ini, yang pada akhirnya berkontribusi pada kesuksesan jangka panjang. Kolaborasi antara lembaga keuangan tradisional dan perusahaan rintisan tekfin, serta kebijakan dan peraturan pemerintah yang mendukung, dapat membantu menumbuhkan ekosistem tekfin yang sehat di pasar negara berkembang (Ajouz & Abuamria, 2023).…”