This study aims to map global trends in Islamic digital banking research and identify strategic pillars for Indonesia’s growth based on the findings of a systematic literature review (SLR).
This study addressed a SLR to assess the existing literature on Islamic digital banking comprehensively. Data collection for this SLR adhered to The Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA). The data were gathered from research studies conducted from 2016 to 2024. The analysis encompassed 56 papers from the Web of Science (WoS) and Scopus databases.
Islamic digital banking may significantly contribute to the advancement of financial inclusion and the growth of Islamic finance through the use of technology, the creation of strategic partnerships and the efficient management of customer needs.
This research offers implications for understanding the potential benefits and challenges of Islamic digital banking. The findings can inform the formulation of suitable strategies to strengthen Islamic financial architecture. Furthermore, this study contributes policy insights for the sustainable development of Islamic digital banking in Indonesia by analyzing the impact of challenges on the Indonesian environment and regulatory landscape. The limitations of this study stem from the limited number of Islamic digital banking publications. For future studies, the authors also propose a few areas to close the gap, such as conducting in-depth studies examining the impact of regulatory frameworks on the growth and innovation of Islamic digital banking and analyzing the role of financial literacy initiatives in promoting responsible financial decision-making within the context of Islamic digital banking. By continuing to explore these areas, one can gain a deeper understanding of the evolving sentiment toward Islamic digital banking and its potential to empower societies. In addition, prior literature suggests including variables such as culture, demographics and educational attainment. It also recommends conducting comparative analyses between Islamic and conventional digital banking adoption and exploring the role of Islamic lifestyle in influencing the use of Islamic digital banks.
This study examines two key insights: first, the potential benefits and challenges of Islamic digital banking in strengthening Islamic financial architecture; and second, the policy insights for sustainable Islamic digital banking development in Indonesia. Future research can build upon these findings to further explore the contributions of Islamic digital banking to Islamic finance.
This study can also empower society with increased literacy and knowledge about Islamic digital banks, especially in Indonesia. Finally, this study enhances the understanding of Islamic digital banking research by presenting its methods, regional context and the focus and trends of previous work, enabling scholars to map literature gaps and deepen future inquiry.
This paper provides a systematic review of the literature on digitalization in Islamic banking, drawing on reputable WoS and Scopus-indexed journals, to offer policy insights of Islamic digital banking development for the Indonesian government. To the best of the authors’ knowledge, this is the first study to undertake such a comprehensive review.
