Emergence of i-FinTech in the Contemporary Socio-Economic Reality

Abstract

The objectives of the study are to describe the emergence of FinTech and its implications for Islamic finance industries both in Pakistan and also on the global scenario. It includes FinTech’s emergence and adaptation by different countries around the globe. It refers to the useof modern and advanced technological applications in financial services and activities. FinTech is a newly emerging innovative tool of operations and financial activities for organizations, firms, and companies. The Islamic financial services industry adopts FinTech in their business operations and activities to gain easy access to their different products, services, and other contracts and activities for customers and stakeholders. FinTech in the Islamic financial service industry is practiced by different countries around the globe. Prominent countries like, Malaysia, UAE, the UK, Indonesia, and the USA have adopted Islamic FinTech in their regions and use it to promote Islamic financial services to stakeholders in their regions. The study is qualitative in nature and uses conducted interviews from financial experts in the Islamic financial industry, bankers, and also with scholars of Shari’ah and jurisprudence. In Pakistan, the concept is new and still in its infancy. There is a lack of the necessary awareness about Islamic FinTech. Awareness campaigns such as seminars, conferences, workshops, road shows, and other types of activity are required for introducing an awareness of Islamic FinTech into countries. The Islamic financial industry needs to adopt joint ventures and alliances with highly technological companies around the globe, such as Samsung, Apple, and other dominant companies, for making and developing new Shari’ah-compliant products and services for customers. For the target segments of Islamic FinTech, Pakistan firms, companies, and organizations are focused on the young generation as their population is increasing along with their use of technology like mobile or smart phones, the Internet, and other advanced technologies. Similarly, FinTech also targets the female population and provides different financial services, products, and other related activities to them. Islamic FinTech has a great future in Pakistan, once the proper marketing and awareness campaign is launched and circulated throughout the country. The role of the State Bank of Pakistan cannot be ignored in introducing and boosting FinTech to different Islamic financial services organizations and institutions in the country. The study is original in nature and has not previously been published.