A Slanted View on the Future of Islamic Fintech and Conventional Fintech in South and Southeast Asian Countries

Mansur Mansur(1*), Andriani Samsuri(2), Nurhayati Nurhayati(3), K Khoyyilah(4)

(1) Miftahul Ulum Islamic Institute Pamekasan, Indonesia
(2) UIN Sunan Ampel Surabaya, Indonesia
(3) UIN Sunan Ampel Surabaya, Indonesia
(4) Miftahul Ulum Islamic Institute Pamekasan, Indonesia
(*) Corresponding Author


Introduction/Main Objectives: This study reviews the presence of Fintech in South and Southeast Asian countries through several categories. Background Problems: Many people doubt the presence of Fintech in South Asia and Southeast Asia as part of a developing country with all its limitations, especially Sharia Fintech. Novelty: Developing Sharia Fintech in South Asian and Southeast Asian countries, which have not spread evenly before. Research Methods: Qualitatively using GFD (Global Findex Database) data collected in 2021, which was then elaborated with 115 research studies (50 from Scopus, 24 from Research Gate, 21 from Google Scholars and 20 from other sources). Finding/Results: The presence of Fintech is more likely to develop rapidly in the Southeast Asia region, not so in the South Asian region. The lneeds of each region are different. It is different if developed by Sharia Fintech (I-Fintech/Islamic Financial Technology). Its potential is almost acceptable in all regions, including in countries that are sensitive to religious issues. Conclusion: It is not only Fintech that is the future of cutting-edge banking, but also the presence of I-Fintech (Islamic Financial Technology) which empirically opens up great opportunities and repositions mainstream financial institutions into traditional banking, including Islamic banking. However, the presence of Fintech and I-Fintech still requires the support of local government policies and the wider community, Muslims and non-Muslims in any part of the world.


Future of Fintech, Islamic Fintech, I-Fintech SDGs

Full Text:



Acar, O., & Çıtak, Y. E. (2019). Fintech integration process suggestion for banks. Procedia Computer Science, 158, 971–978.

Ahmad, S. M., & Al Mamun, A. (2020). Opportunities of Islamic FinTech: The Case of Bangladesh and Turkey. CenRaPS Journal of Social Sciences, 2(3), 412–426.

Alam, N., Gupta, L., & Zameni, A. (2019a). Challenges and success factors for Islamic fintech. In Fintech and Islamic Finance (pp. 159–173). Springer.

Alam, N., Gupta, L., & Zameni, A. (2019b). Cryptocurrency and Islamic Finance. In Fintech and Islamic Finance (pp. 99–118). Springer.

Alam, N., Gupta, L., & Zameni, A. (2019c). FinTech regulation. In FinTech and Islamic finance (pp. 137–158). Springer.

Ali, H., Abdullah, R., & Zaini, M. Z. (2019). Fintech and its potential impact on Islamic banking and finance industry: A case study of Brunei Darussalam and Malaysia. International Journal of Islamic Economics and Finance (IJIEF), 2(1), 73–108.

Alshater, M. M. (2020). Financial Technology Developments and their Effect on Islamic Finance Education. Journal of King Abdulaziz University, Islamic Economics, 33(3), 187. https://doi.org/10.4197/Islec.33-3.9

Arize, A., Kalu, E. U., & Nkwor, N. N. (2018). Banks versus markets: Do they compete, complement or Co-evolve in the Nigerian financial system? An ARDL approach. Research in International Business and Finance, 45, 427–434.

Atif, M., Hassan, M. K., Rabbani, M. R., & Khan, S. (2021). Islamic FinTech. In COVID-19 and Islamic Social Finance (pp. 91–103). Deanta Global Publishing Servis, India. https://books.google.co.id/books?hl=id&lr=&id=L-MSEAAAQBAJ&oi=fnd&pg=PA91&dq=Atif,+M.,++Islamic+FinTech.&ots=fuF751piQ7&sig=wDyV6V6cAbLsMYWUwY6LRTo2LpQ&redir_esc=y#v=onepage&q=Atif%2C M.%2C Islamic FinTech.&f=false

Aujirapongpan, S., Songkajorn, Y., Ritkaew, S., & Deelers, S. (2020). Japan’s digital advance policy towards performance in multilateral ASEAN’s innovation business. Entrepreneurship and Sustainability Issues, 8(1), 1081.

Aulia, M., Yustiardhi, A. F., & Permatasari, R. O. (2020). An overview of Indonesian regulatory framework on Islamic financial technology (fintech). Jurnal Ekonomi Dan Keuangan Islam, 6(1), 64–75.

Avirutha, A. A. (2021). ASEAN in Digital Economy: Opportunities and Challenges. Journal of ASEAN PLUS Studies, 2(1), 17–25.

Baber, H. (2019). Financial inclusion and FinTech: A comparative study of countries following Islamic finance and conventional finance. Qualitative Research in Financial Markets.

Babu, A. V. A. (2016). A Comparative Analysis of Best Practices of Mobile Banking in ASEAN Countries and India. Seaps, 21.

Bakar, N. A., Rosbi, S., & Uzaki, K. (2020). E-wallet transactional framework for digital economy: a perspective from Islamic financial engineering. International Journal of Management Science and Business Administration, 6(3), 50–57.

Biancone, P. Pietro, Secinaro, S., & Kamal, M. (2019). Crowdfunding and Fintech: business model sharia compliant. European Journal of Islamic Finance, 12.

Bromberg, L., Godwin, A., & Ramsay, I. (2017). Fintech sandboxes: Achieving a balance between regulation and innovation. Journal of Banking and Finance Law and Practice, 28(4), 314–336.

Chang, S.-S., Gunnell, D., Sterne, J. A. C., Lu, T.-H., & Cheng, A. T. A. (2009). Was the economic crisis 1997–1998 responsible for rising suicide rates in East/Southeast Asia? A time–trend analysis for Japan, Hong Kong, South Korea, Taiwan, Singapore and Thailand. Social Science & Medicine, 68(7), 1322–1331.

Chen, K. (2018). Financial innovation and technology firms: A smart new world with machines. In Banking and finance issues in emerging markets. Emerald Publishing Limited.

Chinnasamy, G., Madbouly, A., & Reyad, S. (2021). Fintech: A Pathway for MENA Region. In The Fourth Industrial Revolution: Implementation of Artificial Intelligence for Growing Business Success (pp. 135–151). Springer.

Chishti, S., & Barberis, J. (2016). The Fintech book: The financial technology handbook for investors, entrepreneurs and visionaries. John Wiley & Sons.

Coates, J. (2015). Women, men and language: A sociolinguistic account of gender differences in language. Routledge.

Cohen, M., & Nelson, C. (2011). Financial literacy: A step for clients towards financial inclusion. Global Microcredit Summit, 14–17.

Cooper, P. W. (2018). Explosives engineering. John Wiley & Sons.

Cristea, M., & Thalassinos, E. (2016). Private pension plans: an important component of the financial market.

Darmansyah. (2020). Factors determining behavioral intentions to use Islamic financial technology: Three competing models. Journal of Islamic Marketing, 12(4), 794–812. https://doi.org/10.1108/JIMA-12-2019-0252

Demirguc-Kunt, A., Klapper, L., Singer, D., & Ansar, S. (2022). The Global Findex Database 2021: Financial Inclusion, Digital Payments, and Resilience in the Age of COVID-19. https://doi.org/10.1596/978-1-4648-1897-4

Department Statista Research. (2020). Smartphone penetration as share of population in Malaysia 2015-2025. https://www.statista.com/statistics/625418/smartphone-user-penetration-in-malaysia/

Dey, B. L., Sarma, M., Pandit, A., Sarpong, D., Kumari, S., & Punjaisri, K. (2019). Social media led co-creation of knowledge in developing societies: SME’s roles in the adoption, use and appropriation of smartphones in South Asia. Production Planning & Control, 30(10–12), 1019–1031.

Dinar Standard. (2018). Islamic fintech report 2018: Current landscape & path forward. https://www.dinarstandard.com/wp-content/uploads/2018/12/Islamic-Fintech-Report-2018.pdf

Drasch, B. J., Schweizer, A., & Urbach, N. (2018). Integrating the ‘Troublemakers’: A taxonomy for cooperation between banks and fintechs. Journal of Economics and Business, 100, 26–42.

Firmansyah, E. A., & Anwar, M. (2019). Islamic financial technology (FINTECH): its challenges and prospect. Achieving and Sustaining SDGs 2018 Conference: Harnessing the Power of Frontier Technology to Achieve the Sustainable Development Goals (ASSDG 2018), 52–58.

Firmansyah, H. B., & Ramdani, A. L. (2018). The role of Islamic financial technology (FinTech) start-up in improving financial inclusion in Indonesia case: Angsur. 3rd International Conference of Integrated Intellectual Community (ICONIC).

Freedman, R. S. (2006). Introduction to financial technology. Elsevier.

Friantoro, D., & Zaki, K. (2018). Do we need financial technology for collecting zakat? International Conference of Zakat.

Gambler, R. (2018). Border Security: Progress and Challenges with the Use of Technology, Tactical Infrastructure, and Personnel to Secure the Southwest Border.

Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On the fintech revolution: Interpreting the forces of innovation, disruption, and transformation in financial services. Journal of Management Information Systems, 35(1), 220–265.

Gomber, P., Koch, J.-A., & Siering, M. (2017). Digital Finance and FinTech: current research and future research directions. Journal of Business Economics, 87(5), 537–580.

Guild, J. (2017). Fintech and the Future of Finance. Asian Journal of Public Affairs, 17–20.

Hafiz, W. A. (2020). Assessment of global halal market: challenges and opportunities. African Journal of Business and Economic Research, 15(4), 5.

Haqqi, A. R. A. (2020). Strengthening Islamic Finance in South-East Asia Through Innovation of Islamic FinTech in Brunei Darussalam. In Economics, Business, and Islamic Finance in ASEAN Economics Community (pp. 202–226). IGI Global.

Hassen, T. Ben. (2020). The state of the knowledge-based economy in the Arab world: cases of Qatar and Lebanon. EuroMed Journal of Business.

Hes, A., & Jílková, P. (2016). Position of low-cost banks on the financial market in the Czech Republic.

Hidayat, S. E., & Abduh, M. (2012). Does financial crisis give impacts on Bahrain Islamic banking performance? A panel regression analysis. International Journal of Economics and Finance, 4(7), 79–87.

Hudaefi, F. A. (2020). How does Islamic fintech promote the SDGs? Qualitative evidence from Indonesia. Qualitative Research in Financial Markets.

Ibrahim, M. A., Fisol, W. N. M., & Haji-Othman, Y. (2017). Customer intention on Islamic home financing products: an application of theory of planned behavior (TPB). Mediterranean Journal of Social Sciences, 8(2), 77.

Ilias, S. (2009). Islamic finance: overview and policy concerns.

Imam, T., McInnes, A., Colombage, S., & Grose, R. (2022). Opportunities and Barriers for FinTech in SAARC and ASEAN Countries. Journal of Risk and Financial Management, 15(2), 77.

Irfan, H., & Ahmed, D. (2019). Fintech: The opportunity for Islamic finance. In Fintech in Islamic Finance (pp. 19–30). Routledge.

Jahic, A., & Jahan, S. (2019). Human development in a digital economy setup. Bait al-Mashura Finance Consultations.

Jędrzejowska-Schiffauer, I., Schiffauer, P., & Thalassinos, I. E. (2019). EU Regulatory Measures Following the Crises: What Impact on Corporate Governance of Financial Institutions. European Research Studies Journal, 22(3), 432–456.

Kammer, M. A., Norat, M. M., Pinon, M. M., Prasad, A., Towe, M. C. M., & Zeidane, M. Z. (2015). Islamic finance: Opportunities, challenges, and policy options. International Monetary Fund.

Kavuri, A. S., & Milne, A. (2019). FinTech and the future of financial services: What are the research gaps?

Khan, F. (2010). How ‘islamic’is islamic banking? Journal of Economic Behavior & Organization, 76(3), 805–820.

Laldin, M. A., & Furqani, H. (2018). Islamic Financial Services Act (IFSA) 2013 and the Sharīʿah-compliance requirement of the Islamic finance industry in Malaysia. ISRA International Journal of Islamic Finance.

Lee, G., & Megargel, A. (2021). Empowering Singapore’s SMEs: FinTech P2P lending—A lifeline for SMEs’ survival? Journal of Digital Banking, 5(4), 365–377.

Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, business models, investment decisions, and challenges. Business Horizons, 61(1), 35–46.

Maali, B., & Napier, C. (2010). Accounting, religion and organisational culture: the creation of Jordan Islamic Bank. Journal of Islamic Accounting and Business Research.

Maideen, N. M. P., & Jumale, A. (2021). Ramadan Fasting and Patients with Renal Disorders: A.

Mansur. (2022). Problematika Ijtihad-Iqtishad Cryptocurrency Di Indonesia. In Tinjauan Cryptocurrency dalam Berbagai Perspektif Hukum (p. 142). Gaptek Media Pustaka.

Mansur, M. (2015). ’Urf Dan Pembentukan Hukum Islam Menurut Al-Shâtibî. Lisan Al-Hal: Jurnal Pengembangan Pemikiran Dan Kebudayaan, 9(2), 349–378.

Marzuki, M. (2020). The influence of halal product expectation, social environment, and fiqih knowledge on intention to use shariah financial technology products. International Journal of Innovation, Creativity and Change, 13(1), 171–193. https://api.elsevier.com/content/abstract/scopus_id/85085189312

MDEC, M. D. E. C. (2020). Islamic Digital Economy (IDE). https://mdec.my/ms/digital-economy-initiatives/for-the-industry/entrepreneurs/islamicdigitaleconomy/#Wrapper

Michalopoulos, G., & Tsermenidis, K. (2018). Country risk on the bank borrowing cost dispersion within the Euro Area during the financial and debt crises.

Miskam, S., Yaacob, A. M., & Rosman, R. (2019). Fintech and its impact on Islamic fund management in Malaysia: a legal viewpoint. In Emerging Issues in Islamic Finance Law and Practice in Malaysia. Emerald Publishing Limited.

Mohamed, H., & Ali, H. (2018). Blockchain, Fintech, and Islamic finance: Building the future in the new Islamic digital economy. Walter de Gruyter GmbH & Co KG.

Muhammad, M., Muhammad, M. R., & Khalil, K. M. (2013). Towards Shari’ah Compliant E-commerce Transactions: A review of Amazon. com. Middle-East Journal of Scientific Research, 15(9), 1229–1236.

Muryanto, Y. T. (2022). Prospects and challenges of Islamic fintech in Indonesia: a legal viewpoint. International Journal of Law and Management, 64(2), 239–252. https://doi.org/10.1108/IJLMA-07-2021-0162

Navaretti, G. B., Calzolari, G., Mansilla-Fernandez, J. M., & Pozzolo, A. F. (2018). Fintech and banking. Friends or foes? Friends or Foes.

Nguyen, Q. K. (2016). Blockchain-a financial technology for future sustainable development. 2016 3rd International Conference on Green Technology and Sustainable Development (GTSD), 51–54.

Nicoletti, B., Nicoletti, W., & Weis. (2017). Future of FinTech. Springer.

Odinet, C. K. (2020). Securitizing Digital Debts. Ariz. St. LJ, 52, 477.

Oseni, U. A., & Ali, S. N. (2019). Fintech in Islamic finance: Theory and practice. Routledge.

Pandey, P., Sehgal, S., & Ahmad, W. (2019). Dynamics of banking sector integration in South Asia: an empirical study. Indian Growth and Development Review.

Pollari, I., & Daniel, T. (2021). Australian Fintech Landscape 2020. KPMG Australia. https://home.kpmg/au/en/home/insights/2017/08/australian-fintech-landscape.html

Povera, A., & Yusof, A. (2021). Malaysia targets 22.6pct GDP boost from digital economy by 2025. New Straits Times. https://www.nst.com.my/news/nation/2021/02/666984/malaysia-targets-226pct-gdp-boost-digital-economy-2025

Prasad, S. K., & Aravindakshan, S. (2021). Playing catch up–privacy regimes in South Asia. The International Journal of Human Rights, 25(1), 79–116.

Rabbani, M R. (2020). Agility and fintech is the future of islamic finance: a study from islamic banks in bahrain. International Journal of Scientific and Technology Research, 9(3), 6955–6957. https://api.elsevier.com/content/abstract/scopus_id/85082874111

Rabbani, M R. (2021). Exploring the role of islamic fintech in combating the aftershocks of covid-19: The open social innovation of the islamic financial system. Journal of Open Innovation: Technology, Market, and Complexity, 7(2). https://doi.org/10.3390/joitmc7020136

Rabbani, Mustafa Raza, Khan, S., & Thalassinos, E. I. (2020). FinTech, blockchain and Islamic finance: An extensive literature review.

Rahim, N. F., Bakri, M. H., & Yahaya, S. N. (2019). Fintech and Shariah principles in smart contracts. In FinTech as a disruptive technology for financial institutions (pp. 207–220). IGI Global.

Rahman, M. M., Khanam, R., & Rahman, M. (2018). Health care expenditure and health outcome nexus: new evidence from the SAARC-ASEAN region. Globalization and Health, 14(1), 1–11.

Rasyid, M. A.-Z., Setyowati, R., & Islamiyati, I. (2017). Crowdfunding Syariah Untuk Pengembangan Produk Perbankan Syariah Dari Perspektif Shariah Compliance. Diponegoro Law Journal, 6(4), 1–16.

Rizal, F., & Humaidi, M. (2019). Dampak Makroekonomi terhadap Profitabilitas Perbankan Syariah di Indonesia. El-Barka: Journal of Islamic Economics and Business, 2(2), 300–328.

Rizvi, S. K. A., Naqvi, B., & Tanveer, F. (2018). Is Pakistan ready to embrace Fintech innovation? The Lahore Journal of Economics, 23(2), 151–182.

Rusydiana, A. S. (2018). Developing Islamic financial technology in Indonesia. Hasanuddin Economics and Business Review, 2(2), 143–152.

Saad, M. A., Fisol, W. N. bin M., & Bin, M. (2019). Financial Technology (Fintech) Services In Islamic Financial Institutions. International Postgraduate Conference, 1–10.

Saba, I., Kouser, R., & Chaudhry, I. S. (2019). FinTech and Islamic Finance-Challenges and Opportunities. Review of Economics and Development Studies, 5(4), 581–890.

Saksonova, S., & Kuzmina-Merlino, I. (2017). Fintech as financial innovation–The possibilities and problems of implementation.

Setiawan, K., & Maulisa, N. (2020). The Evolution of Fintech: A Regulatory Approach Perspective. Proceedings of the 3rd International Conference on Law and Governance (ICLAVE 2019), 218â, 225.

Setyarini, E. A., Theresia, E., Indrianie, E., Rosali, E. S., Nurofia, F., Gunawan, G., Kuntari, C. M. I. S. R., Adelina, I., Savitri, J., Sulaeman, R., Kiswantomo, H., Wardani, R., Saleh, L. L., Yasni, S., Raisawati, T., Ismaniar, Rohinsa, M., Alfulaila, N., Pettalolo, N., … Malinda, M. (2021). Memeluk Bumi, Menebarkan Kebaikan : Esai-Esai Pada Masa Pandemi. Ideas Publishing. https://books.google.co.id/books?id=RJZSEAAAQBAJ&newbks=0&printsec=frontcover&hl=id&redir_esc=y#v=onepage&q&f=false

Setyawati, I., Suroso, S., Suryanto, T., & Nurjannah, D. S. (2017). Does financial performance of Islamic banking is better? Panel data estimation.

SP, M. E., Riady, D. K., Majid, M. S. A., Marliyah, M., & Handayani, R. (2022). Study Of Literature Financial Technology, Blockchain And Islamic Finance. International Journal of Educational Review, Law And Social Sciences (IJERLAS), 2(1), 21–32.

Suryono, R. R., Budi, I., & Purwandari, B. (2021). Detection of fintech P2P lending issues in Indonesia. Heliyon, 7(4), e06782.

Tao, R., Su, C.-W., Naqvi, B., & Rizvi, S. K. A. (2022). Can Fintech development pave the way for a transition towards low-carbon economy: A global perspective. Technological Forecasting and Social Change, 174, 121278.

Thakor, A. V. (2020). Fintech and banking: What do we know? Journal of Financial Intermediation, 41, 100833.

Ullah, A. K. M. A., & Ming Yit Ho, H. (2021). Globalisation and cultures in Southeast Asia: Demise, fragmentation, transformation. Global Society, 35(2), 191–206.

Van Loo, R. (2018). Making innovation more competitive: The case of fintech. UCLA L. Rev., 65, 232.

Varga, D. (2017). Fintech, the new era of financial services. Vezetéstudomány-Budapest Management Review, 48(11), 22–32.

Warde, I. (2010). Islamic finance in the global economy. Edinburgh University Press.

Widyastuti, N. W. (2018). Embedded social media and its implications for the readiness of sme’s in asean economic community free trade. Proceedings of The International Conference on Social Sciences (ICSS), 1(1).

Yazici, S. (2019). The Analysis of Fintech Ecosystem in Turkey. Journal of Business Economics and Finance, 8(4), 188–197.

Zhang, Y., Chen, J., Han, Y., Qian, M., Guo, X., Chen, R., Xu, D., & Chen, Y. (2021). The contribution of Fintech to sustainable development in the digital age: Ant forest and land restoration in China. Land Use Policy, 103, 105306.

Zia, U., & Mahmood, Z. (2019). Tests of income convergence in ASEAN and SAARC trading blocs. South Asia Economic Journal, 20(2), 167–183.

DOI: https://doi.org/10.21154/elbarka.v5i2.5147


  • There are currently no refbacks.

Copyright (c) 2022 M Mansur, Andriani Samsuri, N Nurhayati, K Khoyyilah

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This Journal Indexed by:




EL BARKA: Journal of Islamic Economics and Business
Faculty of Islamic Economics and Business
Institut Agama Islam Negeri (IAIN) Ponorogo
Kampus II Pintu, Jenangan, Ponorogo, Indonesia