Is Islamic FinTech coherent with Islamic banking? A stakeholder's perspective during COVID-19

Abstract

The prime purpose of this study is to investigate the impact of Islamic fintech in the Islamic banking sector through a stakeholder approach in the wake of the COVID-19 pandemic. Through self-administered questionnaires, the study collected the data of 1000 respondents for seven categories of stakeholders directly or indirectly associated with Islamic banking and Islamic finance in Pakistan. The stakeholders include the local community, customers, managers of Islamic banks, depositors, employees, regulatory officials, and advisers of Sharia (Islamic Law). The findings indicate that respondents revealed a keen interest in Islamic banking and Islamic fintech, particularly during and post-COVID-19 and believed that Islamic banks must not be considered as profit-oriented organizations. Rather their benefit to society is way beyond profit maximizations. The respondents noted several factors to focus on the projects related to community engagement, promoting sustainable development and reducing poverty in the country. The study unveils that Islamic banks must adopt the practices of Islamic fintech and financial innovations to align the community's social goals. While COVID-19 crisis further facilitated the communities to include Islamic fintech in the Islamic banking system.

Keywords

• COVID-19
• Islamic banking
• Islamic finance
• Islamic FinTech
• Stakeholder survey
• Pakistan