Central banks and financial authorities: towards the advancement of I-Fintech

In the year 2007 British banks witnessed the first run on to their very own banks due to various scandals that tarnished the trust and reputations of the banks and the banking industry. Simultaneously, the sub-prime crisis was happening to major banks in the US, France and some other countries that were sharing a high systemic risk. When a systemic risk is high and at the same time if banks don’t keep enough reserved capital to compensate their clients during a crisis period, this situation could lead to a recession, high unemployment, and eventually economic collapse. Since then, stakeholders lost their trust in the banking system globally and were demanding for a more socially responsible, ethical, and systemic stable form of banking. True enough, in the wake of the 2008 global financial crisis (GFC), Islamic finance banking and the Fintech industry were proliferating to fill the existing void in the finance industry by their innovation and a different approach to business transactions. At that time, the faith inspired in the form of ethical banking was enjoying steady growth. Advancement in technology was also facilitating the rapid growth of revolution in Islamic-Fintech (i-Fintech) industry.