Interlinking Globalization, Digitalization, and Financial Inclusion in Islamic Banking

Prof. Dr. Aijaz Ali Khoso; Dr. Ahmed Raza Khan; Dr. Muhammad Shoaib Khan

doi:10.5281/

Authors

Prof. Dr. Aijaz Ali Khoso Professor, Al-Hamd University, Islamabad Campus Author
Dr. Ahmed Raza Khan Visiting Faculty, Bahria University, Karachi Campus, Pakistan Author
Dr. Muhammad Shoaib Khan Associate Professor (Economics), Department of Economics, GC University Hyderabad, Sindh, (Corresponding Author) Author

DOI:

https://doi.org/10.5281/

Keywords:

Islamic banking, financial technology (fintech), Sharia compliance, digital globalization, digital financial inclusion, Islamic fintech, regulatory framework, protection and security of personal data, financial infrastructure, policy and governance

Abstract

The fast growth of Islamic banking, along with the rise of financial technologies, has brought major challenges for banks that follow Sharia rules. It is very important to deal with these issues because more people around the world are interested in Islamic banking as an alternative to regular banks. This chapter looks at how financial technologies and digital globalization are affecting Islamic banking, and it explores the main difficulties and ways to solve them. The chapter also highlights the need to improve the digital experience and build better systems and human resources. It also points out some risks linked to digital financial inclusion, like the use of third parties, agency networks, higher costs, and worries about keeping personal data safe. The chapter suggests that lawmakers and leaders should work harder to create laws, systems, policies, and rules that help use fintech and digital financial inclusion in Islamic banking.