Emerging Technologies and Islamic Banking

This chapter critically examines the integration of emerging technologies within Islamic banking, focusing on their role in enhancing operational efficiency, compliance, and customer-centric solutions while aligning with Shariah principles. The research employs a systematic review method, analyzing 167 academic articles retrieved from Scopus. It utilizes machine learning-based structural topic modeling (STM) to uncover latent thematic structures and trends in the adoption and application of emerging technologies in Islamic banking. The STM identifies ten key themes, including digital transformation, blockchain applications, fintech innovations, predictive modeling, and mobile banking. It reveals significant opportunities for advancing financial inclusion, operational transparency, and sustainability. However, challenges such as regulatory barriers, infrastructure deficiencies, and a lack of Shariah-compliant digital solutions persist, limiting the transformative potential of these technologies. This chapter uniquely applies STM to provide a comprehensive thematic analysis of emerging technologies in Islamic banking, offering actionable insights for stakeholders to navigate the intersection of tradition and innovation.