Reshaping Islamic Financial Services Through Technology: An Analytical Study of Opportunities and Challenges

Abstract

Islamic financial technology (FinTech) has witnessed remarkable growth recently, becoming an effective tool in enhancing financial inclusion and expanding Sharia-compliant financial services. This study aims to examine the impact of Islamic FinTech on the financial sector, focusing on its role in achieving financial inclusion through innovative solutions based on artificial intelligence, blockchain technology, and peer-to-peer (P2P) financing. The research also reviews some leading international experiences in this field and analyzes the opportunities and challenges facing the spread of Islamic FinTech. The study finds that Islamic FinTech offers vast opportunities to enable unbanked individuals to access financial services, improve compliance with Sharia standards, and enhance transparency in financial transactions. However, the success of this technology depends on developing strong regulatory frameworks, strengthening investor confidence, and overcoming technical and legislative barriers. Based on these results, the study suggests that more should be done to create a digital financial environment in Algeria that is in line with Sharia law. It also suggests that the FinTech sector should be encouraged to be innovative, and that Islamic financial institutions and regulatory bodies should work together to get the most out of these technologies.