ENHANCING LEGAL AND REGULATORY FRAMEWORK FOR DIGITAL TRANSFORMATION

Hazik Mohamed

Chapter 11 in Beyond Fintech:Technology Applications for the Islamic Economy, 2020, pp 209-226 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Digital innovation has incorporated advanced technologies in transforming the way we access and use existing financial products and services. The Islamic Economy is becoming increasingly disrupted by revolutionary enterprises using technologies such as cloud computing, extensive use of artificial intelligence (AI) and data analytics, integration of interoperable Internet of Things (IoT) devices, and the blockchained decentralization.Nevertheless, to sustain such innovation, the Islamic Economy has to fully develop digital ecosystems that nurture and develop both the demand and supply sides of the ecosystem. At the same time, regulatory and legal systems need to be strengthened in order for the ecosystem be protected from cyber risks and threats to allow for the market actors to flourish.This chapter assesses the key features of the Islamic Digital Economy and its network to foster fair competition, innovation, and the entrepreneurship mindset. On the supply-side, recommendations to continually develop and attract talent, expertise, and capital to ensure sufficient funding for groundbreaking ideas and novel scalable business models will be made. The regulatory issues that comes with technological adoption along with financial stability implications and consumer protection, with suggestions that regulators themselves adopt advanced technologies (SupTech) to embark on the new era of market supervision and monitoring will also be discussed.

Keywords: Ethics and Technology; Digital Transformation; Regional Development; Customer Behaviour; Evolution of FinTech; Global Landscape; Payments; Asset under Management; InsurTech; Investments; Cloud Computing; Big Data Analytics; Blockchain; Internet of Things (IoT); Robo Advisors; Artificial Intelligence; Machine Learning; Islamic Finance; Endowment; Intellectual Property; Fraud Detection; Risk Mitigation; Cost-Effective; Increased Productivity; Immutable; Know Your Client (KYC); Media Rights; Coordination; Efficiency; Consensus-building; Agility; Scalability; Innovation; Cybersecurity; Collaboration; Venture Capital; Enterprise Solutions; Era of Digitization; Digital Ecosystem; Disruptive Models; Market Insights; Predictive Analytics; Insurance; Takaful; Capital Markets; Distributed Ledgers (DLT); Wealth Management; Islamic Markets; Sharing Economy; Trust Mechanism; Open Platforms; Web and Mobile; Cloud Computing; Trades and Settlements; Regulatory Controls; User Defined; Institutional Economics; Cryptocurrency (Tokens); Public Registries; Smart Contracts; Securities Clearing; Automation; Enforceability; Claims Processing (search for similar items in EconPapers)
JEL-codes: G1 G11 G2 O3 O32 (search for similar items in EconPapers)
Date: 2020
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