Potential of Financial Technology in Transformation of Islamic Banking Sector in Oman

Abstract

The overall aim of this paper is to explore the potential of fintech in transforming Islamic banking industry in Oman. Islamic banks in Oman lack economies of scale, limited nationwide outreach, low penetration rate due to low level of public awareness. FinTech present a huge opportunity for the Islamic banking sector to be more competitive in the marketplace. Data and technology are converging, so, Islamic banks at the end of the day, must deliver excellent financial services at relatively low cost. Collaboration or joint venture between fintech firms and Islamic banks will allow Islamic banks to attract more customers, increase efficiency, but more importantly introduce a proposition for youth to be excited to join the industry and drive its development and growth.