The Islamic finance in the post-covid-19 era: The challenge of fintech, innovation and regulation

Abstract

The Corona virus (COVID-19) pandemic has caused a significant destabilization of the financial world and has caused economic disruptions at an unprecedented speed and scale. Islamic finance has a significant market share. However, it is almost absent in microfinance, small and medium enterprises (SMEs) and retail lending where these sectors are the most affected by the COVID-19 pandemic. This financial crisis should therefore pose different challenges to Islamic finance. It requires a set of technologies (FinTech), strategies and financial services to cope with the possible phenomenon. In this context, this work is based on the analysis and extraction of information from databases such as Scopus and Web of Science on a sample of 317 scientific articles, in order to consolidate a new model of Islamic finance during and after COVID-19 taking into account the technological innovations. The results of this study affirm that the COVID-19 pandemic has been a real opportunity for open and inclusive socio-economic innovation to offer a sustainable, fast and efficient alternative to the world. These Islamic financial innovations aim to provide a medium to long-term solutions. This study provides substantial implications, both practical and theoretical, for Islamic financial institutions so that regulators and policymakers can address the consequences of the COVID-19 crisis.