IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v14y2021i12p602-d701254.html
   My bibliography  Save this article

Assessment of the Competitiveness of Islamic Fintech Implementation: A Composite Indicator for Cross-Country Analysis

Author

Listed:
  • Sofya Glavina

    (Institute of World Economy and Business, RUDN University, 117198 Moscow, Russia)

  • Irina Aidrus

    (Institute of World Economy and Business, RUDN University, 117198 Moscow, Russia)

  • Anna Trusova

    (Institute of World Economy and Business, RUDN University, 117198 Moscow, Russia)

Abstract

Islamic fintech is growing fast, especially in the Organisation of Islamic Cooperation (OOIC) member countries. In recent years, it has become one of the driving forces for the Islamic financial industry. Though the pandemic negatively affected global financial business, including conventional and Islamic segments, Islamic fintech has continued its steady development. i-Fintech increases access to Islamic financial services and financial inclusion in general to provide ESG-rich investment opportunities. The rise of Islamic fintech can help countries become financial hubs and promote sustainable development goals. This paper is aimed at designing an original composite indicator of the competitiveness of Islamic fintech adoption in order to perform a comprehensive assessment of the competitive advantages that are being used across various countries. The research methodology includes data for 65 countries where Islamic fintech companies are represented. We analysed 31 variables describing the development of Islamic financial technologies in each country and combined them into five categories included in the composite indicator. Key factors that determine the development of Islamic financial technologies in different countries around the globe are singled out. The economies with the highest scores are analysed to define their strengths and weaknesses. The practices of the leading countries that address identified vulnerabilities are described.

Suggested Citation

  • Sofya Glavina & Irina Aidrus & Anna Trusova, 2021. "Assessment of the Competitiveness of Islamic Fintech Implementation: A Composite Indicator for Cross-Country Analysis," JRFM, MDPI, vol. 14(12), pages 1-16, December.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:12:p:602-:d:701254
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/14/12/602/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/14/12/602/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mohammad Sahabuddin & Junaina Muhammad & Mohamed Hisham Yahya & Sabarina Mohammed Shah & Md. Kausar Alam, 2019. "Digitalization, Innovation and Sustainable Development: An Evidence of Islamic Finance Perspective," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(12), pages 651-656.
    2. Mohammad Sahabuddin & Junaina Muhammad & Mohamed Hisham Yahya & Sabarina Mohammed Shah & Md. Kausar Alam, 2019. "Digitalization, Innovation and Sustainable Development: An Evidence of Islamic Finance Perspective," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(12), pages 651-656, December.
    3. Mustafa Raza Rabbani & Shahnawaz Khan & Eleftherios I. Thalassinos, 2020. "FinTech, Blockchain and Islamic Finance: An Extensive Literature Review," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 65-86.
    4. Hussam Musa & Viacheslav Natorin & Zdenka Musova & Pavol Durana, 2020. "Comparison of the efficiency measurement of the conventional and Islamic banks," Oeconomia Copernicana, Institute of Economic Research, vol. 11(1), pages 29-58, March.
    5. Nafis Alam & Syed Nazim Ali (ed.), 2021. "Fintech, Digital Currency and the Future of Islamic Finance," Springer Books, Springer, edition 1, number 978-3-030-49248-9, February.
    6. M. Kabir Hassan & Ashraf Khan & Andrea Paltrinieri, 2021. "Islamic Finance: A Literature Review," Springer Books, in: M. Kabir Hassan & Mehmet Saraç & Ashraf Khan (ed.), Islamic Finance and Sustainable Development, chapter 0, pages 77-106, Springer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Odeh Al-Jayyousi & Evren Tok & Shereeza Mohamed Saniff & Wan Norhaniza Wan Hasan & Noora Abdulla Janahi & Abdurahman J. Yesuf, 2022. "Re-Thinking Sustainable Development within Islamic Worldviews: A Systematic Literature Review," Sustainability, MDPI, vol. 14(12), pages 1-26, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sharina Tajul Urus & Intan Salwani Mohamed, 2021. "A Flourishing Fintech Ecosystem: Conceptualization and Governing Issues in Malaysia," Business and Economic Research, Macrothink Institute, vol. 11(3), pages 106-131, December.
    2. Jiandong Chen & Ping Wang & Jixian Zhou & Malin Song & Xinyue Zhang, 2022. "Influencing factors and efficiency of funds in humanitarian supply chains: the case of Chinese rural minimum living security funds," Annals of Operations Research, Springer, vol. 319(1), pages 413-438, December.
    3. Juan Carlos Martín & Carmen Orden-Cruz & Slimane Zergane, 2020. "Islamic Finance and Halal Tourism: An Unexplored Bridge for Smart Specialization," Sustainability, MDPI, vol. 12(14), pages 1-15, July.
    4. Khalil Ullah Mohammad & Mohsin Raza Khan, 2021. "Bank Capital Structure Dynamics and Covid-19: Evidence from South Asia," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 3(3), pages 293-304, December.
    5. Aysan, Ahmet Faruk & Unal, Ibrahim Musa, 2022. "Fintech, Digitalization, And Blockchain In Inslamic Finance: Retrospective Investigation," MPRA Paper 115399, University Library of Munich, Germany.
    6. Walaa J. Alharthi, 2021. "Using Blockchain in WAQF, Wills and Inheritance Solutions in the Islamic System," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 101-116.
    7. Pandey, Dharen Kumar & Hassan, M.Kabir & Kumari, Vineeta & Zaied, Younes Ben & Rai, Varun Kumar, 2024. "Mapping the landscape of FinTech in banking and finance: A bibliometric review," Research in International Business and Finance, Elsevier, vol. 67(PA).
    8. Ahmet Faruk Aysan & Ibrahim Musa Unal, 2021. "Is Islamic Finance Evolving Into Fintech and Blockchain: A Bibliometric Analysis," Post-Print hal-03351153, HAL.
    9. Aysan, Ahmet Faruk & Bergigui, Fouad, 2021. "Sustainability, Trust and Blockchain Applications: Best Practices and Fintech Prospects," MPRA Paper 110023, University Library of Munich, Germany.
    10. Athanasios Tsagkanos & Konstantinos Gkillas & Christoforos Konstantatos & Christos Floros, 2021. "Does Trading Volume Drive Systemic Banks’ Stock Return Volatility? Lessons from the Greek Banking System," IJFS, MDPI, vol. 9(2), pages 1-13, April.
    11. Salvatore Loprevite & Domenico Raucci & Daniela Rupo, 2020. "KPIs Reporting and Financial Performance in the Transition to Mandatory Disclosure: The Case of Italy," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    12. Chunling Li & Nosherwan Khaliq & Leslie Chinove & Usama Khaliq & József Popp & Judit Oláh, 2023. "Cryptocurrency Acceptance Model to Analyze Consumers’ Usage Intention: Evidence From Pakistan," SAGE Open, , vol. 13(1), pages 21582440231, March.
    13. Hasnan Baber & N M Baki Billah, 2022. "Fintech and Islamic Banks - an integrative model approach to predict the intentions," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 24(2), pages 24-45, December.
    14. Albulena SHALA & Rezearta PERRI, 2022. "Regulatory barriers for fintech companies in Central and Eastern Europe," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 13, pages 292-316, December.
    15. Shujaat Saleem & Umair Baig & Ieva Meidute Kavaliauskiene & Mehboob Ul Hassan & Fadillah Mansor, 2022. "Attaining Standardization in Islamic Banking Institutions in Pakistan: Analysis on Ijarah Financing," JRFM, MDPI, vol. 15(10), pages 1-14, September.
    16. Sureka, Riya & Kumar, Satish & Colombage, Sisira & Abedin, Mohammad Zoynul, 2022. "Five decades of research on capital budgeting – A systematic review and future research agenda," Research in International Business and Finance, Elsevier, vol. 60(C).
    17. Ibrahim Musa Unal & Ahmet Faruk Aysan, 2022. "Fintech, Digitalization, and Blockchain in Islamic Finance: Retrospective Investigation," FinTech, MDPI, vol. 1(4), pages 1-11, November.
    18. Siti Mujiatun & Budi Trianto & Eko Fajar Cahyono & Rahmayati, 2023. "The Impact of Marketing Communication and Islamic Financial Literacy on Islamic Financial Inclusion and MSMEs Performance: Evidence from Halal Tourism in Indonesia," Sustainability, MDPI, vol. 15(13), pages 1-20, June.
    19. Mihaela Tofan & Mihaela Onofrei & Anca-Florentina Vatamanu, 2020. "Fiscal Responsibility Legal Framework—New Paradigm for Fiscal Discipline in the EU," Risks, MDPI, vol. 8(3), pages 1-18, July.
    20. Vasile Dedu & Dan-Costin Nițescu & Maria-Alexandra Cristea, 2021. "The Impact of Macroeconomic, Social and Governance Factors on the Sustainability and Well-Being of the Economic Environment and the Robustness of the Banking System," Sustainability, MDPI, vol. 13(10), pages 1-13, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:14:y:2021:i:12:p:602-:d:701254. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.