Al-bank: Journal of Islamic Banking and Finance

Islamic Financial Literacy and Household Financial Behavior in the Digital Era: A Conceptual Synthesis of Contemporary Literature

2025-12-10T12:27:45+07:00

This study aims to synthesize contemporary literature on Islamic financial literacy and its relationship with household financial behavior in the digital era. Employing a qualitative library research design, this study systematically reviews peer-reviewed journal articles, academic books, and institutional reports published over the last decade. Data were collected through structured searches of major academic databases and analyzed using qualitative content analysis, including thematic coding, categorization, and comparative synthesis. The findings indicate that Islamic financial literacy is a multidimensional construct encompassing cognitive understanding of Sharia-based financial principles, financial management skills, and ethical orientations. Higher literacy levels are associated with more structured household financial practices, such as disciplined budgeting, saving orientation, and cautious engagement with digital Islamic financial services. Furthermore, digital financial environments significantly influence household financial decision-making and access to information. This study proposes an integrative conceptual framework linking Islamic financial literacy dimensions with household financial behavior through cognitive, ethical, and behavioral mechanisms. The findings contribute to clarifying the role of Islamic financial literacy in digital financial contexts and provide theoretical insights for future empirical research. Practically, this study offers policy-relevant implications for designing effective financial literacy initiatives aimed at enhancing financial resilience and sustainable financial practices among Muslim households in the digital era

Implementation of Cash Waqf Linked Deposit in Islamic Banking in Indonesia: Regulations, Opportunities, Challenges, and Digital Era Prospects

2025-12-14T21:55:58+07:00

This study aims to analyze the implementation of CWLD in Islamic banking within the digital era by examining its regulatory framework, institutional challenges, and prospects in Indonesia. Using a qualitative literature-based research approach, this study reviews academic publications, regulatory documents, and institutional reports related to cash waqf, Islamic banking, and digital financial innovation. The findings indicate that although CWLD has substantial potential to promote financial inclusion and strengthen Muslim community empowerment, its development remains constrained by the absence of comprehensive technical regulations, institutional fragmentation, low public literacy on cash waqf, limited digital infrastructure, and inadequate managerial capacity of nazhir institutions. Nevertheless, the digital era presents significant opportunities for CWLD development through the integration of technological platforms such as blockchain, Islamic crowdfunding, and digital banking systems. This study contributes to the literature on Islamic social finance by providing a structured analysis of CWLD as an innovative instrument and offers practical insights for policymakers, Islamic banks, and waqf institutions to strengthen regulatory support, enhance public literacy, and foster institutional collaboration to position CWLD as a key pillar of an inclusive and sustainable Islamic financial system

Innovations in Sharia Insurance Products and Business Models: A Comparative Study of Crowd Takaful, Sharing Tabarru’ and Peer-to-Peer Insurance

2026-01-08T06:52:39+07:00

This study aimed to examining innovations in Sharia-compliant insurance products and business models, specifically crowd takaful, sharing tabarru, and peer-to-peer insurance. The methodology applied follows the PRISMA framework, involving a comprehensive search in the Scopus database, strict selection criteria, and thematic qualitative and quantitative analysis to ensure reliability and relevance of the reviewed literature. Key findings reveal that crowd takaful and peer-to-peer insurance models significantly enhance financial inclusion and uphold ethical insurance principles aligned with Sharia values, with fintech technologies driving operational efficiency and transparency. The discussion highlights how integrating Islamic values into technological innovations deepens understanding and adaptation of these insurance models while identifying regulatory and moral hazard challenges that hinder broader development. The conclusion emphasizes this study’s contribution in linking Islamic economic theory with financial technology advances and its practical implications for regulatory innovation and financial literacy promotion. Future research is recommended to focus on cross-cultural comparative studies, development of hybrid theoretical frameworks combining Islamic economics with innovation diffusion and behavioral finance, and advanced bibliometric analyses to map academic progress and policy collaboration. This study aims to boost academic visibility with SEO-friendly keywords relevant to Sharia insurance and modern financial technology.

The Role of Digital Zakat in Enhancing National Income: A Qualitative Review from the Indonesian Context

2025-12-14T22:01:41+07:00

This study analyzes the role of digital zakat in enhancing national income within the Indonesian context using a qualitative literature-based approach. Secondary data were collected from peer-reviewed journal articles, policy reports, and credible digital sources indexed in platforms such as Google Scholar and POP. The analysis was conducted through thematic synthesis to identify recurring patterns and mechanisms linking digital zakat practices to macroeconomic outcomes.The findings indicate that digital zakat contributes to national income through three main mechanisms. First, digital platforms increase zakat collection efficiency by expanding the number of contributors and reducing transaction costs, which leads to higher aggregate zakat funds. Second, the faster and more transparent distribution of zakat funds stimulates household consumption among beneficiaries, particularly for basic needs such as food, education, and health services. Third, digital zakat supports micro and small enterprises through productive zakat schemes, enabling income generation and local economic circulation. In this study, the term “significant role” refers to the consistent evidence across multiple studies showing that digital zakat enhances economic participation, improves income distribution, and strengthens the microeconomic sector, rather than to statistical significance. Overall, digital zakat functions as a complementary socio-economic instrument that supports national income growth while promoting social welfare and financial inclusion

The Aftermath of Covid-19 Pandemic on the Operation of SMEs in Yobe State, Nigeria: The Role of Islamic Finance Models

2026-01-08T08:01:42+07:00

This study examines the post-COVID-19 operational challenges faced by Small and Medium Enterprises (SMEs) in Yobe State, Nigeria, and explores Islamic finance models as potential mechanisms for recovery and sustainability. Employing a qualitative descriptive approach, primary data were collected through structured field observations of selected SME operators across key economic sectors. The findings reveal that limited access to capital, shortage of skilled personnel, multiple taxation, inadequate raw materials, and heightened insecurity remain the major constraints hindering SME operations in the post-pandemic period. The study further argues that Islamic finance instruments—such as Musharakah, Mudarabah, Murabahah, Ijarah, Salam, and Istisna‘—offer viable, ethical, and risk-sharing financing alternatives capable of addressing these challenges. The paper contributes to the growing literature on Islamic social and commercial finance by providing contextual evidence from a conflict-affected and economically disadvantaged region. Policy recommendations emphasize the need for increased Islamic finance awareness, regulatory support, and the integration of Islamic banking products into SME development strategies in Nigeria

Pengaruh Hard Skill dan Soft Skill Terhadap Kesiapan Kerja Alumni Perbankan Syariah Pada Bank Syariah Melalui Motivasi Sebagai Variabel Intervening

2026-01-15T10:26:20+07:00

This study aims to examine the effects of hard skills and soft skills on the work readiness of Islamic banking alumni, both directly and indirectly through work motivation as an intervening variable. A quantitative research design was employed using a census approach involving 196 alumni of the Islamic Banking Study Program at UIN Mahmud Yunus Batusangkar who had entered the workforce. Data were collected using structured questionnaires and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4.0.The results indicate that hard skills and soft skills significantly influence work motivation and work readiness. Soft skills demonstrate a stronger effect on work motivation, while motivation plays a crucial mediating role in strengthening the relationship between both types of skills and work readiness. Furthermore, work motivation significantly enhances graduates’ preparedness to meet professional demands, particularly in the Islamic banking sector. These findings contribute theoretically by reinforcing the role of motivation as a key mediating variable linking technical and non-technical competencies with work readiness. Practically, this study provides important implications for higher education institutions and the Islamic banking industry in designing curricula and development programs that integrate the enhancement of hard skills, soft skills, and motivational aspects to improve graduate employability and career alignment with the Islamic financial sector

Praktik Green Financing pada Bank Pembiayaan Rakyat Syariah: Pendekatan Sustainability Accounting Standards Board

2026-01-27T20:54:11+07:00

This study examines the implementation of Green Financing in Islamic Rural Bank in West Sumatra using the Sustainable Accounting Standards Board (SASB) Index as an analytical framework. A descriptive qualitative approach was employed, utilizing interviews and surveys to evaluate Environmental, Social, and Governance (ESG) dimensions. The findings indicate that environmental initiatives have been initiated; however, their implementation remains informal and lacks systematic documentation. In contrast, the social dimension demonstrates a strong commitment to employee welfare and community empowerment, reflecting the social objectives inherent in Sharia banking principles. Meanwhile, the governance dimension shows that environmental risk considerations have been partially integrated into standard operating procedures (SOP), aligned with Sharia compliance requirements. Overall, the results suggest that while Islamic Rural Bank practices are generally consistent with basic SASB standards, the absence of comprehensive written policies and standardized reporting mechanisms limits the effectiveness and sustainability of green financing implementation. This study highlights the need for formalized governance structures and documented environmental policies to strengthen sustainable finance practices within Islamic rural banking institutions