Digital transformation has reshaped Islamic banking operations through the development of app-based services, the automation of business processes, and the integration of artificial intelligence and financial technology (fintech). These advancements necessitate an adaptation of Shariah governance to ensure continued compliance with Shariah principles, even as digital products and services grow increasingly complex. This study aims to analyze how Shariah governance practices are adapting to digital transformation, identify the challenges faced by the Shariah Supervisory Board (SSB) in overseeing digital products and services, and examine strategies to strengthen an adaptive Shariah governance framework. The research employs a qualitative, descriptive approach based on a literature review. Data were gathered from regulatory documents, annual reports, reports on the execution of SSB duties within Islamic banks, as well as relevant journal articles and books. Content analysis was used to identify themes concerning Shariah oversight mechanisms, digital competency, non-compliance risks, and the use of technology to support supervisory functions. The analysis focuses on understanding how Shariah governance adapts to technological shifts, the obstacles encountered during oversight, and opportunities to bolster Shariah compliance mechanisms. This study seeks to provide a conceptual synthesis of strategies for developing a more adaptive Shariah governance framework, specifically through enhancing the digital competency of the SSB, strengthening oversight procedures for digital products, and leveraging technology. Ultimately, this research aims to contribute to the development of a Shariah governance model that is responsive to technological innovation while remaining firmly rooted in Islamic Shariah principles.
No takes yet. Share an insight, caveat, or question.
Fauza et al. (2026) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: