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Submitted
May 31, 2024
Accepted
December 15, 2024
Published
December 15, 2024
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Abstract

Purpose – This paper examined the use of Shariah-compliant fintech in banking as a means to bridge financial and cultural disparities in Indonesia and the Philippines. Informed by the concepts of maqāṣid al-shari’a, specifically ḥifẓ al-māl (protection of wealth) and ḥifẓ al-‘ird (social dignity), this research investigates the potential of digital financial innovations to enhance inclusivity and resilience within Muslim and minority communities.


Method – Utilizing a mixed-methods approach, the research integrates qualitative interviews and focus group discussions with quantitative surveys analyzed using Structural Equation Modelling (SEM)


Findings – The findings reveal that Indonesia’s advanced regulatory framework and market maturity enable robust adoption of Shariah-compliant Fintech, enhancing financial inclusion for underserved communities. In contrast, the Philippines, particularly the BARMM region, demonstrates untapped potential hindered by limited infrastructure and regulatory gaps.


Practical implications – Practical implications include the need for policymakers to develop comprehensive regulations, financial institutions to build trust, and technology innovators to design culturally aligned solutions. These insights theoretically connect Islamic finance and cultural adaptation to global sustainability initiatives, including the Sustainable Development Goals (SDGs) related to Reducing Inequalities, Decent Work, and economic growth, as well as the social dimension of Environmental, Social, and Governance (ESG) criteria.


Originality/value – comparative analysis of Shariah-compliant Fintech adoption in two socio-religiously distinct countries, providing actionable insights for scaling culturally sensitive financial technologies across Southeast Asia

Keywords

FintechIslamic BankingFinancial GapsCultural Gaps

Article Details

How to Cite
Purnamasari, R., Rismala, & Ibrahim, H. D. (2024). Shariah-compliant Fintech in Banking: Bridging Financial and Cultural Gaps for Inclusive Shariah Finance in Indonesia and the Philippines. BANCO: Jurnal Manajemen Dan Perbankan Syariah, 6(2), 150–160. https://doi.org/10.35905/banco.v6i2.9512
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