Enhancing Islamic Banking and Finance in Southeast Asia Through the Application of Artificial Intelligence

2020 ◽  
pp. 36-53
Author(s):  
Nor Razinah Mohd. Zain ◽  
Rusni Hassan ◽  
Azman Ismail
Keyword(s):  
Artificial Intelligence ◽  
Southeast Asia ◽  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
Islamic Banking ◽  
Financial Services Industry ◽  
Positive Trend ◽  
Banking And Finance ◽  
Services Industry

The disruption of innovations in the banking sector continues to indicate a positive trend among bankers and customers. The innovations of technology that stand with speediness and fast track transaction effectively support the spread in using banking system without barriers. Recently, the financial services industry continues to be surprised by the latest technology's innovation that is known as artificial intelligence. By looking into the ecosystem for the future sustainability of Islamic banking and finance in Southeast Asia, Islamic financial services may learn and adopt several best practices of A.I. from global banking practices. With a focus on the Islamic financial services industry in Southeast Asia, an exploration on the readiness of such industry and advantages of artificial intelligence are made. This research depends on the qualitative investigation from documentary materials. The leadership of Islamic banks shows their readiness in accepting artificial intelligence.

Artificial Intelligence and Personalized Banking

2022 ◽  
pp. 74-87
Author(s):  
Sunanda Vincent Jaiwant
Keyword(s):  
Artificial Intelligence ◽  
Customer Service ◽  
Financial Services ◽  
Banking Sector ◽  
Banking Industry ◽  
Human Intelligence ◽  
Financial Services Industry ◽  
Customer Journey ◽  
Services Industry ◽  
Applications Of Ai

AI has begun making its presence felt in every industry and now across the financial services industry as well. This chapter examines and presents the use of AI in banks for better customer service giving them a personalized experience. This chapter explains how banks are getting future-ready for their financial services by means of AI and are delivering financial offerings seamlessly. This research primarily focuses on the concept of AI in the field of banking, how AI has revolutionized personalized banking and made banking operations more efficient and successful. AI innovations are an integral part of Industry 5.0 which aims at integrating automation and human intelligence. This chapter aims to study and describe the current applications of AI in the banking industry and its impact on the banking sector. The study also gives a description of the banks employing AI to facilitate an exceedingly personalized customer journey with the banks.

Challenges Faced in Full Establishment of Islamic Banking System in Nigeria

2017 ◽  
Vol 1 (1) ◽  
pp. 1-6 ◽  
Author(s):  
Zainab Idris
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Islamic Banking ◽  
Investment Opportunity ◽  
Huge Number ◽  
Foreign Investors ◽  
Banking And Finance ◽  
Conventional Banks ◽  
Infant Stage ◽  
Made In

Islamic banking in Nigeria is still at its infant stage and surrounded by a lot of challenges and set bank. It is important to note that despite the huge number of Muslims population in the country, little progress has been made in ensuring its full take off and operationalization. The paper there examines the challenges Islamic banking is faced with in Nigeria. Through review of past studies, the paper the paper identify factors like; Problem of Competition with dominant conventional banks, Problem of Competition with dominant conventional banks, Double taxation and others as the major challenges of Islamic banking in Nigeria. However the paper, the paper recommends that Islamic banking and finance in Nigeria offers a huge investment opportunity for both domestic and foreign investors what is most needed to achieve this, is for all stakeholders to collaborate in a way that a structured, functional and sustainable Islamic banking model will be formulated and communicated widely so as to gain general acceptability. Furthermore, the paper will serve as a guide to investors by pointing the problems the Islamic banking sector is facing in Nigeria.

Prospects of an online dispute resolution framework for Islamic Banks in Malaysia

2017 ◽  
Vol 25 (1) ◽  
pp. 39-55 ◽  
Author(s):  
Umar A. Oseni ◽  
Sodiq O. Omoola
Keyword(s):  
Dispute Resolution ◽  
Financial Services ◽  
Internet Banking ◽  
Internet Survey ◽  
Islamic Banking ◽  
Financial Services Industry ◽  
Access To Justice ◽  
Content Type ◽  
Online Dispute Resolution ◽  
Services Industry

Purpose This study aims to examine the prospects of using an online dispute resolution (ODR) platform for resolving relevant Islamic banking disputes in the usual banker–customer relationship in Malaysia. It is argued that through proper regulation, such innovative dispute management mechanism would not only address some legal risks associated with banking disputes but could also prevent reputational risks in the Islamic financial services industry. Design/methodology/approach Based on an internet survey, responses were obtained from about 109 respondents in Malaysia. The data obtained were subjected to multivariate statistical analyses considering factors such as access to justice, attitude of stakeholders, resolving disputes, practical issues and understanding of ODR. Findings The results obtained showed that “access to justice”, “attitude of stakeholders” and “resolving disputes” are the most influencing factors affecting the intention to use ODR among stakeholders, particularly customers and bankers in the Islamic financial services industry in Malaysia. Practical implications This study provides a way in which the recently introduced Islamic Financial Services (Financial Ombudsman Scheme) Regulations 2015 can be better enhanced to cater for internet banking disputes which might require an ODR framework. Originality/value Though there have been numerous studies on the dispute resolution framework in the Islamic banking industry in Malaysia generally, the current study focuses on a less explored framework – ODR– a new framework for handling banking disputes.

scholarly journals Analisis Yuridis Tujuan dan Kewenangan Otoritas Jasa Keuangan (OJK) dalam Lembaga Perbankan di Indonesia

PRANATA HUKUM ◽  
2018 ◽  
Vol 13 (2) ◽  
pp. 168-180 ◽  
Author(s):  
Yulia Hesti
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Financial Services Industry ◽  
Services Sector ◽  
Financial Services Sector ◽  
Regulation And Supervision ◽  
Consumer Rights ◽  
Integrated Regulation ◽  
Services Industry ◽  
Article 5

The industry of the financial services or banking sector is demanded to be constantly stable, that is healthy, transparent and well managed. Such banking conditions can build consumers to continue to actively engage in transactions. However, as time goes by the development of the financial services industry in Indonesia is increasing and the cross-sectoral problems of the financial services industry are increasingly in need of reform in the field of banking law, then the Financial Services Authority is formed as an institution that will replace Bank Indonesia in the supervision of banks and supervise institutions other finance. OJK in its formation has several objectives to carry out supervision, especially in the financial services sector. Pursuant to Article 4 of the OJK Law, OJK was formed with the aim that all activities within the financial services sector: (a) be organized regularly, fairly, transparently and accountably; (b) Able to realize a financial system that grows sustainably and stably; and (c) Able to protect the interests of consumers and society. Based on its authority, the OJK carries out the task of regulating and supervising the banking sector in accordance with its functions as stipulated in Article 5 of the OJK Law which functions to organize an integrated regulation and supervision system for all activities within the financial services sector. With the presence of OJK in supervision, banking and other financial institutions can create harmonious regulations so as to protect consumer rights.

scholarly journals Stability, efficiency and financial risks of islamic banks in conditions of instability of global financial system

Upravlenie ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 105-113 ◽  
Author(s):  
Tatyana Mazurina ◽  
Shukrullokhon Sharipov
Keyword(s):  
Banking Sector ◽  
High Efficiency ◽  
Banking System ◽  
Financial System ◽  
Islamic Banking ◽  
Positive Trend ◽  
Financial Risks ◽  
Islamic Banks ◽  
Crisis Period ◽  
Global Financial System

In modern conditions of implementation Islamic model of banking, the issues of increasing efficiency of its activities and ensuring the long-term stability of Islamic banks come to the fore. Article analyzes the activities of Islamic banks in the post-crisis period, both in the global Islamic banking sector as a whole, and in the context of individual countries in which Islamic banks are predominantly or significantly represented, as well as financial risks that pose a threat of losses for Islamic banks. It has been concluded that the Islamic financial system is becoming one of the most important components of the international financial system, and Islamic banks within the global financial system are becoming more recognized and competitive, as they demonstrate a sufficiently high efficiency and stability of activity, a positive trend of development. Analysis found that Islamic banking has demonstrated its reliability and stability in the post-crisis period and continues to be a viable and effective mechanism of financial intermediation in the conditions of global financial system instability. The differences in the functioning and performance of Islamic banks in different countries within a single consolidated Islamic banking system have been revealed, a comparative analysis effectiveness of banking sectors a number of Muslim countries has been given, the directions of development of Islamic banking in them have been shown. Conclusions have been drawn on the need for Islamic banks to introduce effective mechanisms for monitoring and managing financial and investment risks in order to increase their ability to withstand adverse external factors, since in the future, despite the positive trends in the activities of Islamic banks, there are potential financial risks due to the growth of their current costs associated with the possibility of potential deterioration in the quality of assets and reduction in the level of profit.

THE CURRENT STATE OF THE BANKING SYSTEM OF SAUDI ARABIA

2017 ◽  
Author(s):  
Maryna Korol ◽  
◽  
Olha Shumnegra ◽  
Keyword(s):  
Saudi Arabia ◽  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
Scientific Publication ◽  
Islamic Banking ◽  
Historical Aspect ◽  
Current State ◽  
The Government ◽  
And Control

This scientific publication analyzes the current state of the banking system of the Kingdom of Saudi Arabia. The peculiarities of the functioning of the Islamic banking system, the main types of financial products provided by banks and the laws under which financial services are provided to Muslims are identified. The basic principles of Islamic banking, which are prescribed in the Sharia, are described, such as, for example, the exclusion of interest on all financial transactions. There is also a list of major Saudi banks and foreign affiliates operating in the country. The historical aspect of the formation of the banking sector is studied. The main financial indicators are analyzed: the dynamics of assets, liabilities, the number of loans to private and corporate clients, the share of Saudi assets in global Islamic finance. Attention is also paid to the prospects and success of the stock market. The issue of management and control over the activities of banks and its role are studied. a list of specialized credit institutions established by the government to provide highly specialized loans to citizens of the kingdom. The positive dynamics of all indicators even in the conditions of global crises, thanks to the well-laid foundation and the further strategy concerning functioning in the conditions of the world pandemic are allocated. The list of the main internal problems which can suspend growth in the future is considered. The issue of the country's dependence on oil prices, with further impact on financial diversification, is considered separately. The prospects of the banking system of Saudi Arabia in the near future, and the role of the Kingdom as a partner in financial relations for the domestic economy are determined. Conclusions are made on the basis of the conducted research and prospects of further strategic development in this direction.

Banking and Financial Services Industry in the Wake of Industrial Revolution 4.0

2021 ◽  
pp. 71-82
Author(s):  
Vibha Bhandari
Keyword(s):  
Financial Services ◽  
Industrial Revolution ◽  
Financial Services Industry ◽  
Technological Advancement ◽  
Financial Industry ◽  
Banking And Finance ◽  
Doing Business ◽  
Modern Methods ◽  
Services Industry ◽  
Existing Form

The banking and financial services industry today stands at the crossroads between the traditional methods of business and the evolving modern methods of banking and providing financial services. Technological advancement in the field of finance has led to a whole new form of doing business which is a radical departure from the conventional methods of doing business. The players in the field of banking and finance are facing challenges and competition from entities which never existed in the traditional sphere. The banking and financial industry is not only facing stiff competition from these new age players; it is also facing challenges to find fresh talent who can tide off this industry. This chapter in its existing form shall present an overview of the banking and financial industry of today in the wake of Industrial Revolution 4.0 and identify some associated challenges.

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