EMERGENCE OF FINANCIAL TECHNOLOGY IN ISLAMIC BANKING INDUSTRY AND ITS INFLUENCE ON BANK PERFORMANCE IN COVID-19 SCENARIO: A CASE OF DEVELOPING ECONOMY

Ashfaq Ahmad; Aamir Sohail; Abid Hussain

Ashfaq Ahmad Assistant Professor, Hailey College of Commerce, University of the Punjab, Lahore, Pakistan
Aamir Sohail Department of Management and Administrative Sciences, University of Sargodha (Bhakkar)
Abid Hussain Director, High Aims School Systems, Jahan Khan Bhakkar, Pakistan

Keywords: Financial Technology, Islamic Banks, Artificial Intelligence, Mobile Banking

Abstract

Technological intervention and financial innovation are an essential element for the banking sector especially in post-Covid 19 scenario. Islamic banking industry has also no exception and Islamic banks could attain institutional objectives over financial technology. The motivation behind research is to investigate emergence of financial technology in Islamic Banking Industry and its Influence on Bank Performance. The population of the study consists of Islamic banks and windows of Islamic banks operating in Pakistan. The sample size consists of four Islamic banks, five Islamic windows of conventional banks, and State bank of Pakistan. Purposive sampling technique was used by researcher. Semi-structured interviews were conducted and NVIVO software was used for data analysis. Findings indicate that technologies used by different banks to serve the customer are blockchain, mobile banking, customer relations management, cyber security, cloud banking, and fintech start-up. Reaction and response of the Islamic finance industry to the rise of financial technology and its impact on Pakistan is obvious.