Legal Frameworks for Consumer Protection in Digital Sharia Banking

Abstract

This study aims to examines and compares the legal frameworks for consumer protection in Indonesia and Malaysia, as well as Islamic digital banking. The rapid development of digital financial services brings opportunities and legal risks, especially in safeguarding consumer rights related to transparency, personal data, and dispute resolution. The study reviews relevant regulations in both countries by applying a normative-comparative legal method. Findings reveal that Malaysia, through Bank Negara Malaysia (BNM), offers a more unified and comprehensive regulatory system, while Indonesia's model involves multiple institutions with overlapping mandates. This article contributes to understanding the legal challenges of digital Sharia banking and proposes regulatory harmonization, stronger digital safeguards, and a greater role for Sharia supervisory bodies. The study is limited to legal documents; future research may include an empirical assessment of consumer protection outcomes.