IMPACT OF FINTECH ON ISLAMIC BANKS: UNBLOCKING POSSIBILITIES : A LITERATURE BASED STUDY

Abstract

Customer satisfaction and banking operations in Pakistan have significantly improved as a result of the integration of Financial Technology (FinTech) into Islamic banking. This study examines the revolutionary effect of FinTech on Islamic banking practices and its consequences for the Pakistani financial environment, drawing on an extensive analysis of the literature. Results show that the use of FinTech has improved accessibility, decreased prices, and increased transparency with regard to financial services. This is especially true with regard to innovations like block chain technology, Islamic crowd funding platforms, and payment systems that comply with Shariah. FinTech solutions drive innovation, competitiveness, and socioeconomic development. Notable gains have been reported in operational efficiency and financial inclusion. Based on these findings, the paper makes suggestions for how Pakistani Islamic banks might use FinTech more, such as making investments in technology infrastructure, adhering to regulations, and developing ability.