Islamic Financial Regulations, Islamic Financial Literacy and Financial Inclusion: Insights from ASEAN (SAUJANA Jurnal Perbankan Syariah dan Ekonomi Syariah)

Summary

• The systematic literature review synthesized 15 empirical studies drawn primarily from Indonesia and Malaysia published between 2016 and 2024.p.1
• The PRISMA framework search identified 16 initial database records, resulting in 15 final studies included after screening.p.11
• In Indonesia, BAZNAS established a target for 30% of zakat and charity transactions to take place via digital platforms by 2020.p.15
• An analysis of over 240 Islamic fintech companies showed that the Middle East hosts 79 companies, while Southeast Asia hosts 71.p.15
• Indonesia and Malaysia together represent 24% of global Islamic fintech activity, with the UK accounting for 18% and the UAE 13%.p.15
• Neobanks secured $1.2 billion out of the total $2.44 billion invested globally in the Islamic fintech sector.p.16

Key insights

1. Effective Islamic financial regulation enhances literacy levels, which directly promotes financial inclusion across ASEAN member states.p.1
2. Indonesia introduced the 2016 Financial Inclusion Roadmap to leverage Sharia-compliant products for underserved and unbanked populations.p.2
3. Malaysia's Islamic Financial Services Act (IFSA) 2013 established a regulatory framework focused on Shariah governance and consumer trust.p.4
4. A study of 100 clients in Aceh Province demonstrated that local regulatory commitment (Qanun) strengthens the legal basis for financial inclusion.p.14
5. Digitalization of Islamic social finance in Indonesia helped achieve a moderate zakat literacy index score of 66.78.p.15
6. Global investment in Islamic fintech reached $2.44 billion, heavily supported by venture capital across the Middle East, Southeast Asia, and the West.p.16
7. Survey research among creative industry SMEs in Yogyakarta found that most business owners fall into the sufficiently literate category regarding Sharia finance.p.16