Table Of Content‘The book can be considered a guiding companion for those who are concerned
about fintech.’
Dr Mohd Daud Bakar, Founder of Amanie Group &
International Islamic Finance Advisor
‘The book provides students, academics, scholars, and practitioners with a
detailed description of theoretical and philosophical speculations on digital
transformation in Islamic finance.’
Abu Umar Faruq Ahmad, Chair, Shariah Governance
Curriculum Review Committee, AAOIFI
‘The book offers an important insight as to how technology is going to shape the
future of finance.’
Professor Dr Mohammad Hashim Kamali, Founding CEO,
International Institute of Advanced Islamic Studies (IAIS), Malaysia
DIGITAL TRANSFORMATION IN
ISLAMIC FINANCE
The ongoing digital transformation is shaping the Islamic mode of fnancial
intermediation and the impact on the faith-based fnancial mode has been mul-
tifaceted. This has raised a host of interesting questions: what is the degree of
penetration of Islamic fnance in the fntech industry? Are Islamic fnancial insti-
tutions (IFIs) or banks ready to embrace fntech? Is fntech an enabler or barrier
to achieve the intended purpose of Islamic fnance? Will technology narrow
the division between Islamic and conventional fnance in the future? These are
existential questions for Islamic fnance and the book endeavors to examine the
impact of fnancial technology on the industry.
The book assesses various fntech business models and how they could be a
threat or an opportunity. It also examines whether fntech provides IFIs an edge
to serve clients following the Shariah norms and how the adoption of fntech
in the Islamic mode is required for meeting the maqasid Al Shariah. The book
discusses applicability of fntech like blockchain, digital currency, big data, and
AI to diferent branches of Islamic fnance.
This book will interest students, analysts, policymakers, and regulators who
are working on Islamic fnance, fnancial economics, Islamic economics, and
development fnance.
Yasushi Suzuki is a Professor at Ritsumeikan Asia Pacifc University, Japan.
Mohammad Dulal Miah is an Associate Professor at the University of Nizwa,
Oman.
Islamic Business and Finance Series
Series Editor: Ishaq Bhatti
There is an increasing need for western politicians, fnanciers, bankers, and
indeed the western business community in general to have access to high quality
and authoritative texts on Islamic fnancial and business practices. Drawing on
expertise from across the Islamic world, this new series will provide carefully
chosen and focused monographs and collections, each authored/edited by an
expert in their respective feld all over the world.
The series will be pitched at a level to appeal to middle and senior manage-
ment in both the western and the Islamic business communities. For the manager
with a western background the series will provide detailed and up-to-date brief-
ings on important topics; for the academics, postgraduates, business communi-
ties, manager with western and an Islamic background the series will provide
a guide to best practice in business in Islamic communities around the world,
including Muslim minorities in the west and majorities in the rest of the world.
Institutional Islamic Economics and Finance
Edited by Ahsan Shafq
Islamic Finance in the Financial Markets of Europe, Asia and America
Faiza Ismail
The Informal Economy and Islamic Finance
The Case of Organization of Islamic Cooperation Countries
Shabeer Khan
Digital Transformation in Islamic Finance
A Critical and Analytical View
Edited by Yasushi Suzuki and Mohammad Dulal Miah
For more information about this series, please visit: www.routledge.com/
Islamic-Business-and-Finance-Series/book-series/ISLAMICFINANCE
DIGITAL
TRANSFORMATION IN
ISLAMIC FINANCE
A Critical and Analytical View
Edited by
Yasushi Suzuki and
Mohammad Dulal Miah
First published 2023
by Routledge
4 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
605 Third Avenue, New York, NY 10158
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2023 selection and editorial matter, Yasushi Suzuki and Mohammad
Dulal Miah; individual chapters, the contributors
The right of Yasushi Suzuki and Mohammad Dulal Miah to be
identifed as the authors of the editorial material, and of the authors for
their individual chapters, has been asserted in accordance with sections
77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced
or utilised in any form or by any electronic, mechanical, or other
means, now known or hereafter invented, including photocopying and
recording, or in any information storage or retrieval system, without
permission in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks
or registered trademarks, and are used only for identifcation and
explanation without intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Suzuki, Yasushi, editor. | Miah, Mohammad Dulal, editor.
Title: Digital transformation in Islamic fnance : a critical and
analytical view / edited by Yasushi Suzuki and Mohammad Dulal Miah.
Description: First Edition. | New York, NY : Routledge, 2023. |
Series: Islamic business and fnance series | Includes bibliographical
references and index. |
Identifers: LCCN 2022036670 | ISBN 9781032200910 (hardback) |
ISBN 9781032200934 (paperback) | ISBN 9781003262169 (ebook)
Subjects: LCSH: Finance—Islamic countries. | Banks and banking—
Technological innovations—Islamic countries. | Financial institutions—
Technological innovations—Islamic countries.
Classifcation: LCC HG187.4 .D54 2023 | DDC 332.091767—dc23/
eng/20221006
LC record available at https://lccn.loc.gov/2022036670
ISBN: 9781032200910 (hbk)
ISBN: 9781032200934 (pbk)
ISBN: 9781003262169 (ebk)
DOI: 10.4324/9781003262169
Typeset in Bembo
by codeMantra
CONTENTS
List of figures xi
List of tables xiii
List of contributors xv
Foreword xix
Preface xxiii
Acknowledgements xxv
Introduction 1
Yasushi Suzuki and Mohammad Dulal Miah
Part I
Theoretical and philosophical speculations on digital
transformation in Islamic finance 13
1 Digital transformation in Islamic finance: a critique of
perfectionist’s views on Islamic fintech 15
Yasushi Suzuki and Mohammad Dulal Miah
2 A typology of financial business models on digital
transformation (‘DX’): expected impacts on commercial banks 44
Yasushi Suzuki and Mohammad Dulal Miah
3 Fintech, technomania, and persistent socio-civilizational
challenges 64
Mohammad Omar Farooq and Muhammad Dulal Miah
viii Contents
Part II
Empirical studies 81
4 Business risk mitigation through “Value-Chain Integrated”
financing in Islamic Peer-to-Peer Lending in Indonesia:
PT Qazwa Mitra Hasanah’s experience 83
Sigit Pramono, Dikry Paren, M. Iqbal Ramadhan and
Muhammad Razikun
5 Prospects and opportunities of Islamic crowdfunding in
Bangladesh 101
S. M. Sohrab Uddin, Rima Akter and
Md Imran Hossain Anik
6 Empirical assessment on digital transformation in Islamic
banking 118
Abideen Adeyemi Adewale and Rifki Ismal
7 Fintech in Islamic banking in Bangladesh: opportunities
and threats 142
Md. Joynal Abedin, Syed Mahbubur Rahman and Riyashad Ahmed
8 Exploring digital banking patronage in the Netherlands 154
Muhammad Ashfaq, Abdul Rauf, Mai Tran
and Rashedul Hasan
9 Can Islamic FinTech best serve the migrants’ interest in
remittance services? The South and Southeast Asian
perspective 172
S. M. Sohrab Uddin and Tasfika Khanam
10 The impact of central bank digital currency (CBDC) on
the operations of Islamic Banks 190
A.K.M. Kamrul Hasan
11 Takafultech reflects the Maqasid al-Shariah ethos in takaful 203
Amirul Afif Muhamat and Norfaridah Ali Azizan
12 Digital transformation and IFRS 17 accounting issues in
takaful industry: the case of Indonesia 218
Ersa Tri Wahyuni
Contents ix
13 Dilemma and challenges for fntech application in Waq f
administration/regulation in contemporary Muslim
majority countries: a case of Bangladesh 235
A. K. M. Kamrul Hasan
14 Breaking the barriers of Zakat management system
through Islamic Fintech: the case of Bangladesh 251
S. M. Sohrab Uddin and Afroza Sultana
15 An inquiry into the application of artifcial intelligence
on Fatwa 273
Ali Polat, Shoaib Khan and Usman Bashir
Conclusion 288
Yasushi Suzuki and Mohammad Dulal Miah
Index 297
