The advancement of technology has touched many sectors, including financial industries. The emergence of Financial Technology or Fintech has changed the way people do business transactions. Indonesia as a country with a separate regulatory model under the Central Bank of Indonesia (BI) and Financial Services Authority (OJK) has issued several regulations to regulate fintech, which includes Islamic fintech. This paper aims to analyse the existing regulatory framework of Islamic fintech in Indonesia and gives some recommendations, if any, to improve Islamic fintech development in Indonesia. It uses qualitative methodology by extracting information from works of literature and existing regulations. This research finds that both BI and OJK have significant roles in regulating Islamic fintech without issuing any provision to address it specifically. However, it is complemented by the fatwa issued by the National Shariah Board of Indonesian Ulama (DSN MUI).

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An overview of Indonesian regulatory framework on Islamic financial technology (fintech)

Social networks allow users to build their own webpage and share information with other internet users. In the last years, multi-purpose social networks have appeared and been eagerly adopted by consumers and companies for multiple social, communication and marketing purposes. We focus on the determinants of adoption behavior of social networks. Notably, we examine the Technology Acceptance Model (TAM), a model specifically developed to explain adoption of information technologies, and test whether it can be used to explain consumers' use of Social Networks. Our results support the model and confirm that Perceived Usefulness and Perceived Ease of Use impact the attitude towards using Social Networks, leading to Intention to Use these tools.

Examining the Technology Acceptance Model in the Adoption of Social Ne tworks

The aim of this paper is to examine whether Islamic finance could be an alternative to the traditional financial system and could guarantee stability in times of crisis. To this end, 78 Islamic banks in 12 countries have been studied over the 2004 to 2013 period. A series of bank-specific and other country-specific indicators are combined to explain the soundness of Islamic banking in terms of profitability as measured by ROA and ROE, and risk divided into credit risk measured by IMLGL and EQL, and insolvency risk measured by Z-SCORE. The aim is to estimate five regressions using dynamic panel data econometrics (GMM system). The results indicate that bank size and capital are the main factors responsible for increasing profitability and stability of Islamic banks and reducing their credit risk. However, the ratios forming the variable liquidity and asset quality often lead to inconclusive results. It is also found that macroeconomic variables, except inflation, are able to improve Islamic banks’ stability. This is not the case for credit risk where the ratio is still unfavorable. The conclusion is that there are no major differences between IBs and CBs in terms of their profitability and risk features.

Risk and profitability of Islamic banks: A religious deception or an alternative solution?

Purpose – The purpose of this paper is to determine the factors influencing the Indonesian Muslim consumer’s intention to use Islamic banks. Methodology – This paper adopts a quantitative approach. The data is collected from online and offline questionnaires. By using a non-probability purposive sampling method, this study limited the respondents to the Muslims who have no Islamic bank account. In total, there are a total of 575 sample respondents. Findings – The results of this study portray that religiosity, knowledge, and perceived quality have a positive and significant effect on customers’ intention to use Islamic bank in Indonesia. Research limitations – After finishing all research processes, the author finds that the indicators to measure Islamic religiosity is not entirely reflected Islamic religiosity from the Indonesian Muslim context. As a consequence, several items must be eliminated from the analysis due to validity issues. The author recommends future researchers to retest the religiosity indicators to find more suitable items in the context of Indonesia Muslim culture. Practical applications – This study provides an insight into the Indonesian Islamic finance industry as a basic formulation in designing, developing, and appropriate strategies to promote Islamic banking. Social applications – This study not only helps Islamic financial sector in designing, developing, and promoting Islamic banking in Indonesia but also offers new insights concerning Indonesian Muslim religiosity, knowledge on Islamic banks, and their perception of quality toward Islamic banks. Originality – This study uses an extended Theory of Planned Behavior (TPB) to explain the intention to use Islamic banks. In the model, religiosity, knowledge, and perceived quality is simultaneously tested to complement the TPB.

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Factors affecting Muslim non-customers to use Islamic bank: Religiosity, knowledge, and perceived quality

The rise of financial technology (fintech) has been one of the substantial changes in the financial landscape driven by technological advancements and the global financial crisis. This paper employs the systematic literature review (SLR) technique to review recent literature on fintech adoption or acceptance employing the Scopus database (2019–2022). The final reviewed documents are sixteen journal articles published by various journals from different country contexts and theoretical backgrounds. Several inclusion criteria were used to filter those selected documents. One crucial criterion is the journal continuity in the Scopus index, which assures the quality of the published scholarly works. This criterion selection is expected to represent this paper’s novelty. The study reveals various determinants derived from the theories used by the fintech researchers. However, the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT) are the most used theoretical foundations. Additionally, trust, financial literacy, and safety are other factors developed by previous researchers and are significant determinants of fintech adoption. Besides, these results suggest that future studies on fintech adoption develop a genuine construct since fintech keeps progressing, and so does the customers’ behavior.

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Factors Affecting Fintech Adoption: A Systematic Literature Review

http://www.cell.com/article/S2405844022016735/pdf

Fintech in islamic finance literature: A review

Purpose – This study investigates the influential factors of mobile banking service quality dimension (enjoyment, security, ease, design, and application system) of Indonesian Islamic banks toward customer satisfaction. Methodology – This study uses 100 respondents who are Islamic mobile banking users in Indonesia and applies the Partial Least Square for Structural Equation Modeling (PLS-SEM) approach. Findings – This study reveals that the enjoyment, security, design, and application system of Islamic mobile banks significantly impact customer satisfaction. This study suggests that Islamic banks should pay more attention to increasing their mobile banking application systems, which is the most crucial factor influencing customer satisfaction. Research limitations – This study is limited to the sample of five top Islamic banks’ customers in Indonesia with 100 respondents. Thus, the result of this study cannot be generalized to other countries. Practical implications – The findings offer valuable insights into Islamic banks about improving their mobile banking services’ quality to gain more satisfied customers, which benefited their financial and non-financial performances. Originality  – This study specifically involved users of Islamic mobile banking from five Islamic banks, received the Top Brand Award in 2019. Therefore, this study provides significant guidelines for the rest of the Islamic banks in Indonesia to improve their customer satisfaction using mobile banking by referring to the Top 5 Brand Award.

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Mobile banking services quality and its impact on customer satisfaction of Indonesian Islamic banks

This study aims at investigating the factors affecting the share’s underpricing in service companies of the Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX) covering the period from 2011 to 2017. Compared to the precedent studies, this study provides an empirical comparison between Islamic and non-Islamic shares on 22 underpricing stock samples from 44 IPOs in Islamic service shares and 21 underpricing samples from 32 IPOs in non-Islamic service shares. This study adopts a multiple linear regression analysis and an independent sample t-test method. It is revealed that the underwriter's reputation and auditor's reputation have a significant effect on the underpricing of IPO on IDX, both in Islamic and non-Islamic service companies. The result of independent samples t-test indicates that Islamic service shares companies have better financial performance compared to non-Islamic service shares companies. Predicated upon the results, this study implicatively insinuates that companies based on Shariah compliance could anticipate the underpricing level more expeditiously since the Shariah principles are in line with the decreasing level of underpricing.

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Determinants of Underpricing in Islamic and Non-Islamic Shares on IPO


Purpose
This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.


Design/methodology/approach
This study used a qualitative method based on library research sourced from books, financial reports and another previous research.


Findings
The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line.


Research limitations/implications
This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia.


Originality/value
Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.


Zakat as an instrument of poverty reduction in Indonesia

This study aims to examine the correlation between Islamic banks' profitability in Indonesia and the business cycle, which measured by composite leading Indicator (CLI). This study used several annual data covering the period from 2004-2018. This study utilizes Islamic banks profitability represent by Return on Asset (ROA) data as the dependent variable, CLI data as the dependent variable, and six control variables including Gross Domestic Product, Inflation, Financial to Deposit Ratio, Capital Adequacy Ratio, Non-Performing Finance, and Operating Costs Operating Income. This study adopted multiple regression analysis by using EViews 9.0 software. This study reveals that CLI has a positive and significant impact on ROA, which indicated that the expansion of business cycle activities would increase Islamic banks' profitability. Thus, this study suggests that Islamic bank should engage with the companies that relied on their business activities in the rill sector to boost their profitability. The limitation of this study is this study adopted Indonesian Islamic banks in general. Therefore, this study does not capture the correlation amongst the variables in the specific Islamic banks and region, which might be different from this result due to the differences in banks' internal conditions, culture, and the business cycle in the various region.

http://jurnal.unissula.ac.id/index.php/ijibe/article/download/13046/5381

Indri Supriani

Papers

Fintech in islamic finance literature: A review

Mobile banking services quality and its impact on customer satisfaction of Indonesian Islamic banks

Determinants of Underpricing in Islamic and Non-Islamic Shares on IPO

Zakat as an instrument of poverty reduction in Indonesia

Examining the correlation between islamic banks profitability and the business cycle in indonesia