Digitalization, Innovation and Sustainable Development: An Evidence of Islamic Finance Perspective

Islamic finance has developed a unique and balance system that complies with the principles of Shariah. Shariah encompasses all aspect of human life that aims to provide a fair, equitable distribution of wealth, alleviate all form of poverty and promote sustainable development. This study focuses on discussing the current issue of digitalization, innovation and sustainable development based on the evidence of Islamic finance. The objectives of this study are to generate the discussion, how digitalization and innovation play their role to sustain development in Islamic finance perspectives. Moreover, the study also sheds light on the challenges faced by Islamic finance on applying this digitalization and innovation viewpoints. The evidence suggests that due to the rapid economic growth, digitalization and innovation are the catalysts to sustain the development. In Islamic finance perspectives, digitalization and innovation (Fintech- blockchain and bitcoin) are still in their infancy stage. The researchers agreed that FinTech is a Maslahah (interest) to broaden the area of sustainable development such as zero poverty, no hunger and the social well-being of the community.