Abstract
The aim of the Fourth Industrial Revolution is to reshape people’s daily lives, social structures, political phenomena, the business world, and industrial production with the belief of revolutionary changes in digital innovation and transformation. In addition, the ongoing COVID-19 pandemic has also devastated the developed and emerging economies. This chapter seeks to explore the impact of the fourth industrial revolution and the COVID-19 pandemic on technological advancement in the Islamic finance industry. The relevant published reports and literature are reviewed to identify the research gap and expected findings. The results of the literature review and subsequent discussions show that there is a scarcity of conceptual and empirical studies on the fourth industrial revolution and the COVID-19 pandemic from Islamic finance perspectives. The chapter also concludes that technological advancements would ensure progress in relevant industry products and services, as well as Islamic finance businesses, for the betterment of the world’s inhabitants. In the era of post-COVID-19, FinTech may play a winning role in increasing streamlining process, standardization, ensuring transparency, and reducing the costs that can make Islamic finance instruments more competitive than conventional forms.
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Notes
- 1.
GFC is the real example of exogenous risk, which is derived from outside of the economy. In contrast, the COVID-19 crisis is an example of endogenous risk, which is derived from within the system. Primarily, GFC hit the financial system, whereas the COVID-19 directly hit the real economy.
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Sahabuddin, M., Ahmad, A., Islam, M. (2023). Emergence of Islamic Finance in the Fourth Industrial Revolution and COVID-19 Post-Pandemic Era. In: Jumat, Z.H., Hafiz Khateeb, S., Nazim Ali, S. (eds) Islamic Finance, FinTech, and the Road to Sustainability. Palgrave CIBFR Studies in Islamic Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-13302-2_6
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