THE SYARIAH-COMPLIANT DIGITAL TRANSFORMATION: MAPPING ETHICAL FRAMEWORKS FOR ISLAMIC FINTECH ADOPTION IN SOUTHEAST ASIA
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Digital Transformation, Ethical Frameworks, Syariah Compliance
Abstract
Rapid digital transformation has reshaped financial services, positioning Islamic fintech as a strategic alternative grounded in syariah ethics. In Southeast Asia, the expansion of Islamic fintech has outpaced the development of coherent ethical frameworks, raising concerns about the depth of syariah integration beyond procedural compliance.This study aims to map and critically examine ethical frameworks guiding syariah-compliant digital transformation and Islamic fintech adoption across Southeast Asian contexts. The research employed a qualitative comparative design using secondary regulatory data, institutional documents, and selected case studies from major Islamic fintech markets. An ethical mapping approach was applied to analyze how principles such as transparency, justice, risk-sharing, and maqasid al-shariah are embedded within fintech governance and design. The findings reveal uneven ethical integration across jurisdictions, with stronger alignment in countries possessing mature regulatory and shariah governance systems. Most platforms emphasize formal compliance, while transformative ethical objectives remain weakly operationalized. Case evidence shows that early-stage ethical integration enhances governance coherence and stakeholder trust. The study concludes that sustainable Islamic fintech adoption requires shifting from compliance-oriented models toward integrative ethical frameworks embedded throughout the digital innovation lifecycle. This orientation supports inclusive finance, regulatory legitimacy, and long-term socio-economic resilience regionally sustainability.
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Copyright (c) 2026 Mukhid Mukhid, Adam Idris, Ethan Tan, Omar Al-Fahim
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