Fintech in Islamic Finance and Technical Applications for Islamic Financial Institutions: A Systematic Literature Review Study

Abstract

This paper provides an overview of the progress made in the field of Islamic FinTech research. This study employs a hybrid methodology that integrates bibliometric analysis and content analysis in order to elucidate the prevailing research trajectory within the field of Islamic FinTech. The Scopus database was utilized to retrieve a total of 85 documents, which were subsequently subjected to analysis using R Studio and VOS viewer. The research output in the field of Islamic FinTech is classified into four distinct streams through the process of content analysis. The research indicates the possibility of integrating FinTech into Islamic finance as a means to provide advantages for individuals and small to medium-sized enterprises who lack access to traditional banking services. Additionally, the implementation of FinTech in Islamic finance has the potential to assist the government in enhancing financial inclusion, overcoming financial crises such as the COVID-19 pandemic, and attaining Sustainable Development Goals (SDGs) for the long-term well-being of the nation. Nevertheless, the absence of adequate legal regulations and the limited level of financial literacy pose significant challenges to the advancement of FinTech in the domain of Islamic finance.