Digitalization and Disruption in the Financial Sector
Financial institutions are embracing digitalization to improve the delivery of financial services. To realize the full potential of digitalization, financial institutions are applying artificial intelligence, augmented reality, biometrics and cloud computing amongst others in their financial services offerings. While financial institutions are getting transformed due to digitalization, they are also getting disrupted from the rising force of fintech startups. If not catered for the digital disruption, the startups have the potential to shrink the role and relevance of incumbent financial institutions. This chapter delves into how the financial sector, including Islamic finances, is getting transformed in the wake of digitalization.
- CIBAFI. (2018). Global Islamic Bankers’ Survey 2018. Available at: http://cibafi.org/ControlPanel/Documents/Library/Pdf/EnglishGIBS2018-Final-Online.pdf
- EY. (2017). Banking in Emerging Markets GCC FinTech Play 2017. Available at: https://www.ey.com/Publication/vwLUAssets/ey-banking-in-emerging-markets-gcc-fin-tech-play-2017/$FILE/ey-banking-in-emerging-markets-gcc-fin-tech-play-2017.pdf
- Gartner. (2018). Digitalization Will Make Most Heritage Financial Firms Irrelevant by 2030. Available at: https://www.gartner.com/en/newsroom/press-releases/2018-10-29-gartner-says-digitalization-will-make-most-heritage-financial-firms-irrelevant-by-2030
- Salaam Gateway. (2019). Islamic Finance Volume Expected to Hit $2.5 Trillion in 2019. Available at: https://www.salaamgateway.com/en/story/islamic_finance_volume_expected_to_hit_2.5_trillion_in_2019_zubair_mughal-SALAAM02012019023533, https://www.gartner.com/it-glossary/digitalization/, https://www.revolut.com/about-revolut