Toward Sustainable Islamic Banking: The Role of FinTech, Knowledge Management, Green Banking, and Sharia Compliance
Year: 2025
Type: article
Study design: Observational Study
Abstract: Islamic banking is facing increasing pressure to adopt sustainable business practices while maintaining compliance with sharia principles. In this context, Financial Technology (Fintech), Knowledge Management, Green Banking, and Sharia Compliance have emerged as critical factors influencing sustainability. This research aims to examine sustainable business models in Islamic banking in Central Java by analyzing the interrelations among these factors. A quantitative approach using Structural Equation Modeling Partial Least Squares (SEM-PLS) was applied to data from 515 sharia bank employees. The findings indicate that Fintech significantly influences Green Banking, Knowledge Management, and business sustainability, but does not directly affect Sharia Compliance. Green Banking significantly impacts both Sharia Compliance and business sustainability, while Sharia Compliance mediates the relationship between Green Banking and sustainability. These results highlight the need for deeper integration between Fintech and Islamic principles. Islamic banks are encouraged to develop strategies that synergize technological innovation, environmental responsibility, and religious compliance to achieve long-term, sustainable growth.
Source: Economica Jurnal Ekonomi Islam
Authors: Satria Avianda Nurcahyo, Raditya Ferdianto, Anisa Dewi Arismaya, Muhammad Anis
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4412159454