INVESTIGATING THE ROLE OF FINANCIAL INNOVATION ON ISLAMIC FINANCIAL INSTITUTIONS PERFORMANCE DURING COVID-19

Syeeda Shafiya; Ashfaq Ahmad; Aamir Sohail

Syeeda Shafiya Senior Lecturer, Business and Accounting, Muscat College, Baushar, Muscat, OMAN
Ashfaq Ahmad Professor, Hailey College of Commerce, University of Punjab, Pakistan
Aamir Sohail Lecturer, Department of commerce, Thal University Bhakkar, Punjab, Pakistan

Keywords: Financial Innovation, Financial Technology, Digitization, Covid-19, Performance

Abstract

During the present COVID-19 pandemic, this study explain the critical role of Financial Innovation (FI) in stabilizing the Islamic financial institutions in term of digitization, financial inclusion and financial technology. The simple random sampling was used to collect data from the managerial staff of IFIs from selected part of Pakistan. Questioner was used to collect data from 316 survey respondents. The researchers analysed data using Smart-PLS SEM software. For data analysis, the variety of statistical approaches were used, including descriptive statistics, reliability analysis, correlation analysis, and structural equation modelling. Results provide significant information in terms of the digitalization, financial technology, and financial inclusion, Islamic financial institutions have substantial impact on financial innovation. This research is limited to Islamic financial institutions in Pakistan. The future research may look into other instiutions across the country to examine the
impact of financial innovation by comparing the Islamic and conventional financial sectors