Islamic Digital Finance Innovation and Financial System Development: Empirical Evidence OIC Countries

Abstract

Purpose — This research is here to answer the question, what is innovation influencing digital finance to develop Islamic finance systems in OIC countries?

Method — The research approach uses a quantitative approach, panel data regression model with samples of country OIC of Top 20 by Gift member from 2005-2022. Data in the form of secondary data obtained from the official website of the World Development Indicator, World Bank Global Financial Development and World Governance. Model testing using help application STATA statistics 17.

Result — Research results show that innovation has a significant influence on digital finance as ATM and Bank Branches to the development of Islamic financial systems as financial development in OIC member countries.

Novelty — Through findings It can be concluded that it is actually utilization of technology in the industrial finance sector, especially Islamic finance, is capable of triggering development of financial systems in countries OIC members and get a place among your society Originality/Novelty: There is no research on Islamic financial innovation and the Islamic financial system using panel data in OIC countries. Digital developments and the level of demand for the fintech market in OIC countries are the reasons for researchers to raise this issue.