Bridging the Gap Between Fintech and Islamic Finance: A Systematic Literature Review

Abstract

Financial technology (Fintech) experienced rapid transformation to develop modern systems which optimize worldwide financial operations and enhance market accessibility for everyone. The current financial transformation enables Islamic finance to apply Fintech solutions through Shariah principles to handle its special challenges and expand market opportunities. This systematic review tracks Fintech and Islamic finance convergence through a dual assessment of their operational partnership and the present obstacles and future gains that appear. The financial technology industry shows promising signs to enhance inclusivity and operational performance through new law-compliant services yet encounters various hurdles as it integrates with Islamic finance. Regulatory complexities, ethical considerations, and the need for Shariah-compliant innovation pose significant challenges. Multiple research findings have been combined to create an understanding of how Fintech transforms Islamic finance through blockchain technology acceptance of crowdfunding mechanisms and digital banking products and robo-advisory solutions. The study evaluates numerous studies to reveal essential research trends as well as unaddressed research areas which will help academics and practitioners, and policy creators make decisions about utilizing Fintech capabilities for Islamic finance development.