Islamic Law and Digital Financial Inclusion in Muslim Minority Regions: Legal Adaptation to Socio-Cultural Change and Economic Marginalization
DOI:
https://doi.org/10.24252/al-daulah.v15i1.66747Keywords:
Digital Financial Inclusion, Islamic Legal AdaptationAbstract
This study examines the role of Islamic law in promoting digital financial inclusion in Muslim-minority regions, with a particular focus on legal adaptation to socio-cultural change and economic marginalization. Despite the rapid expansion of financial technology (fintech), Muslim minority communities continue to face structural barriers, including limited access to Shariah-compliant financial services, regulatory constraints, and socio-cultural exclusion. To address this gap, the study adopts a mixed-method approach, combining doctrinal analysis of Islamic legal principles with empirical testing using Partial Least Squares Structural Equation Modeling (PLS-SEM) based on survey data from 210 respondents. The empirical findings reveal that digital financial inclusion significantly enhances economic participation (β = 0.462, p < 0.001) and reduces economic marginalization (β = −0.389, p < 0.001). Islamic legal adaptation positively influences digital financial inclusion (β = 0.341, p < 0.001), underscoring the importance of ijtihād in facilitating fintech integration within Islamic legal frameworks. Furthermore, Islamic ethical alignment significantly strengthens financial trust (β = 0.298, p < 0.001), highlighting the role of moral legitimacy in digital financial systems. The study contributes to the literature by developing a maqāṣid al-sharīʿah-based framework that integrates digital financial inclusion with Islamic jurisprudence, extending existing theories such as capability theory, institutional theory, and the Technology Acceptance Model. In practice, the findings offer policy and managerial implications for developing Shariah-compliant fintech solutions and inclusive regulatory frameworks in Muslim-minority contexts.
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