Big data analytics in islamic banking

Abstract

Islamic financial institutions must comply with the Shari‘ah law. This makes them distinctly different from conventional Western banks. Big Data Analytics (BDA) is a technology and as such regarded as culture-free. There are a few pilot BDA projects in conventional banks but none in Islamic banking. Our paper fills a research gap by analyzing possible applications and implications of BDA for Islamic banks and its regulatory institutions. Our field research showed that the benefits of BDA are already here or will flourish within the coming five years. Implications of our research are that Islamic Banks must start drafting a roadmap for their organization. Risk management is one area where BDA can be of great benefit.