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The role of financial technology in developing the performance of Islamic banks

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Islamic banks in today's world have become an important strategic choice stemming from the spiritual depth of the nation. This is an excellent addition in the financial field, giving these banks a golden opportunity for investors who want to invest their money in a Sharia-compliant way away from riba and gharar.
Modern Islamic banks have contributed to the development of the financial system in many countries of the Islamic world, and in their pioneering experience they have created a safe haven and an encouraging alternative to the system of riba-based banks. In today's world there are more than 600 Islamic financial institutions in about 75 countries. These institutions include banks, Takaful institutions, insurance institutions and the stock market.
The adoption of the Islamic financial system is no longer confined to the Islamic countries, but the adoption of this system included other countries such as Japan, South Korea and Britain. Banks in these countries resorted to opening windows for Islamic transactions, and even went further. A huge infrastructure.
Competitiveness and Islamic banks
The rapid spread and successes of Islamic banks on the ground have made them vulnerable to strong competition from riba-based banks at all levels, whether it is improving services, studying customer behavior or taking advantage of modern technological innovations to use them to increase, improve and improve service efficiency.
With this rapid development in the spread of Islamic banks and the development of their services, attention to innovations
Modern technology in finance is one of the keys to the development of these banks, improving their competitiveness and increasing their efficiency in a highly competitive international market.
The financial technology sector, or "Financial Technology", has witnessed rapid global growth. Between 2011 and 2015, total investment in this sector reached $ 15.5 billion.
The demand for the products of this sector has been greatly boosted by banks and international financial institutions, both Islamic and traditional, especially in Asia, the United States and the Gulf States.
So what about FINTech financial technology?
Financial Technology
According to the Digital Research Institute in the Polish capital of Dublin, financial technology is the latest inventions and technological innovations in the financial sector. These inventions include a set of digital programs used in the financial operations of banks, including: transactions with customers and financial services such as money transfer and currency exchange Interest rate calculations, profits and the expected profits of investments and other banking operations.
Financial Technology in Europe
FinTech investments reached $ 1.5 billion in Europe in 2014, with London-based companies accounting for $ 536 million of these investments. The companies in the Netherlands (Amsterdam-based) The value of investments in these companies reached $ 266 million. The increase in investment in this field indicates the importance and high demand for technological innovations in the field of finance.
Financial Technology in Asia Pacific
The value of investments in financial technology institutions (FinTech) in Asia reached about $ 3.5 million during the ninth month of 2015. The value of these investments increased thanks greatly from $ 880 million 2014 to $ 3.5 billion in the ninth month of 2015. The technology companies China has launched a program to develop and innovate technological innovations in the field of finance.
(FinTech and Information Group).
Financial Technology and Islamic Banks
Malaysia, Indonesia, Turkey and the GCC countries from Islamic countries that have been interested in benefiting from financial technology in the development of the performance of their Islamic banks, although the use of digital technology included a limited number of services such as: Internet payment and banking services ... That these banks were able to introduce their products and improve their services through the work of new digital technology. This technology has also contributed to increasing the efficiency of these banks and increasing their competitiveness.
According to an opinion poll conducted by EY, 78% of GCC banks want to improve their e-banking services by adopting more digital software to include more services. Statistics show that 40% of FinTech software used In these countries, Payments Solutions are electronic payment programs.
There is a significant positive impact on the development of financial technology especially on Islamic banks. These new digital technologies enable these banks to easily introduce their products and financial services, provide their services with great efficiency and high quality and thus their ability to compete in the financial market. Among the countries that have seen an evolution in their use of financial technology:
 1 - Malaysia: The Governor of the Central Bank of Malaysia, Mr. Mohammed bin Ibrahim on the launch of the program:
The project is the first Malaysian intermediary bank to fully adopt financial technology and provides financing for small and medium enterprises. The project includes two Malaysian Islamic banks and a financing of 150 million ringgit.
2. The UAE: Through Beehive Dubai Based, the P2P funding format was launched for easy access to finance through electronic technology. This facility is the first intermediary in finance with the adoption of FinTech. Where creditors and borrowers are linked through a high-quality technical system for ease of dealing.
Scientific technology was a great opportunity for the banking system through its advanced electronic systems and programs that helped banks develop their performance and increase their efficiency in services and transactions. For Islamic banks, financial technology is the key to the success and excellence of these banks. Despite its successes on the ground, this fast and sophisticated technology is a new way for this banking system to help it better define its products and services. Therefore, an urgent strategy and strategic policy for these banks should give them more impetus and success to the system. Islamic Banking.

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