Fintech Adoption in Islamic Banks: Comparative Insights from Asean-5 Countries

Abstract

Rapid FinTech advancements and shifting consumer behavior are transforming Islamic banking by facilitating technological integration that enhances operational efficiency, broadens financial accessibility, and upholds rigorous Shariah compliance. This study seeks to investigate the FinTech adoption within the Islamic banking sector in ASEAN-5 countries. The study reveals a diverse landscape of FinTech adoption among Islamic banks in ASEAN, with frequent mentions of “Digital,” “Big Data,” and “Online Payment” indicating strong engagement with key technologies. High mean values for these terms highlight growing interest in enhancing operational efficiency and accessibility. Conversely, low mentions of “Blockchain” and “Cryptocurrency” suggest cautious adoption due to Shariah compliance concerns and regulatory ambiguity. Country-specific findings show Malaysia and Indonesia as regional leaders, actively integrating advanced FinTech concepts like AI, cloud computing, and mobile payments. Brunei demonstrates notable focus on digital initiatives despite its smaller market, while Thailand and the Philippines show lower engagement, reflecting disparities in infrastructure and readiness. Temporal trends from 2020 to 2023 indicate increasing discussions on AI, big data, and robo advisors, aligning with broader global shifts toward digitalization. MANOVA results confirm significant country-level differences in FinTech discourse, underscoring the role of regulatory context and digital maturity. Overall, the findings emphasize the dynamic nature of FinTech adoption in ASEAN Islamic banking and the need for strategic, Shariah-compliant innovations to sustain competitiveness and financial inclusion.