The role of fintech in facilitating cross-border banking services:Research on Islamic finance, Bangladesh perspective

Abstract

The integration of financial technology (fintech) into cross-border banking services has transformed global financial systems by enhancing speed, transparency, and inclusiveness. This research explores the role of fintech in simplifying the cross-border banking within the framework of Islamic finance in Bangladesh. Leveraging recent developments in blockchain, mobile banking, and digital payment platforms, the research explores how fintech innovations are aligning with Shariah-compliant principles to expand access to international financial services for individuals and small businesses. Using qualitative interviews with industry experts and data from Bangladesh’s central bank, fintech firms, and Islamic financial institutions, the study identifies opportunities and challenges in adopting fintech for cross-border transactions. Findings reveal that fintech has improved cost-efficiency and accessibility, particularly for remittance inflows and trade finance, yet faces regulatory, infrastructural, and Shariah governance hurdles. The study concludes with policy recommendations for fostering a fintech ecosystem that supports the growth of Islamic cross-border banking in Bangladesh, while ensuring compliance with both international financial standards and Islamic legal frameworks.